The Management of the Nigeria Social Insurance Trust Fund (NSITF) has debunked claims that its Managing Director/Chief Executive Officer of the Fund, Oluwaseun Faleye was involved financial mismanagement.
The NSITF in a statement sent to Frontline News Online on Tuesday dismissed media reports that Faleye had mismanaged funds belonging to the agency
The statement read in part: “The NSITF categorically states that these allegations are false, malicious, and unsupported by verifiable facts, and appear to form part of a coordinated attempt to discredit the leadership of the Fund and undermine the far-reaching reforms currently underway.The NSITF operates strictly within a clearly defined statutory, financial, and governance framework under the Employees’ Compensation Act (ECA), 2010, the Public Finance Management laws of the Federal Republic of Nigeria, and applicable Treasury, procurement, and audit regulations”.
According to the statement alll funds accruing to the Employees’ Compensation Fund are public trust funds, subject to multilayered internal controls, routine internal and external audits, Management Board oversight, and supervision by relevant government authorities.
According to the statement at the Managing Director/Chief Executive Officer has not operated, controlled, or had access to NSITF funds outside the approved institutional banking structure of the Fund. NSITF monies are held exclusively in official Fund accounts, and all disbursements pass through established financial controls involving multiple officers, departments, and approval stages.
The NSITF Management rejected suggestions that the Fund’s resources were diverted into personal or non-Fund accounts is categorically false.With regard to claims about the operation of multiple bank accounts linked to a single Bank Verification Number (BVN), it must be clearly stated that BVN linkage and account administration are regulated by deposit money banks and the Central Bank of Nigeria, not by individual discretion.
The statement read in part: “The existence of multiple accounts, many of which are dormant, marked “Post-No-Debit,” or not operational, does not constitute evidence of wrongdoing. Crucially, no credible evidence has been produced showing that NSITF funds were paid into any personal or third-party account.
“The allegation that the Managing Director/Chief Executive Officer granted himself “unlimited approval authority” is also misleading and inaccurate. Internal approval frameworks within public institutions operate strictly within statutory financial regulations, procurement laws, and Board oversight. They do not override approval thresholds prescribed by government circulars, including those issued by the Office of the Secretary to the Government of the Federation.
“No internal decision can lawfully supersede these statutory controls, and no single officer can unilaterally appropriate or expend public funds.Claims that expenditures were made without Board approval further reflect a misunderstanding, or deliberate misrepresentation, of public financial administration. Board approval is required for policy direction and annual budgets, while operational expenditures are governed by established statutory and regulatory thresholds.
“The NSITF maintains comprehensive documentation of approvals, mandates, and supporting records, all of which remain available for lawful review by authorised oversight bodies.On issues relating to vendor payments and commissions, the NSITF reiterates that all engagements under the current administration are undertaken in strict compliance with the Public Procurement Act and applicable regulations”.
The statement clarified that payments are tied to contractual obligations, services rendered, and statutory mandates. Any concerns are appropriately addressed through lawful audit and review processes, not through trial by media.
The NSITF Management assured stakeholders and the Nigerian public, that the Management of the NSITF recognises that the ongoing transformation of the Fund, its institutional rebirth, aggressive push for automation, recovery of long-standing debts, and digitisation of operations, has disrupted entrenched interests.
“Experience shows that when loopholes are closed, those who previously benefited from them often react loudly. Unfortunately, this is how resistance to reform frequently manifests.Let it be clearly stated: this is corruption fighting back”, the statement read.
“The NSITF will not be distracted by sponsored mudslinging or sensational narratives designed to undermine public confidence. Our focus remains firmly on our mandate, paying claims faster, expanding the social protection safety net for Nigerian workers, strengthening governance, and delivering on the Renewed Hope Agenda of Mr President. We assure the public unequivocally:The NSITF is safe. The funds are secure.Management remains fully committed to transparency, accountability, and the prudent management of the Employees’ Compensation Fund”, the statement further read.
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