A major disagreement has erupted between the Federal Government and the Organized Private Sector (OPS). The conflict centers on a proposed increase in the Nigeria Social Insurance Trust Fund (NSITF) levy.
Business leaders are pushing back strongly against the plan. They warn that this move could cripple struggling companies.
The government recently announced plans to review the current contribution rates. Officials argue that the increase is necessary. They say the current funds are insufficient to cover employee compensation claims. The government believes a higher levy will ensure better protection for workers.
However, the Organized Private Sector disagrees. This group includes top bodies like the Nigeria Employers’ Consultative Association (NECA). They argue that businesses are already overburdened.
Many companies are facing high energy costs and rising inflation. Adding another financial burden could be disastrous. Spokespersons for the private sector say this policy is ill-timed. They fear it may lead to job losses.
"We cannot survive another tax increase right now," a representative stated. "The timing is wrong, and the approach is aggressive."
The private sector is calling for dialogue instead of a mandate. They want the government to focus on widening the tax net. They believe the current payers should not be punished further.
This standoff comes at a difficult time for the economy. Recently, Governor Abba Yusuf met President Tinubu to discuss economic support for Kano. This shows that economic pressure is being felt across all levels of government.
Why This Matters
The NSITF scheme is vital for worker safety. It provides compensation for injuries, disabilities, or death at work.
If the levy is raised, businesses might cut costs elsewhere. This often means reducing staff or freezing hiring. On the other hand, if the fund runs dry, injured workers suffer.
Both sides are digging in their heels. The government insists on the upgrade for social security. The private sector insists on survival.
Observers fear a prolonged legal battle. If they cannot agree, it could disrupt industrial peace.
Check back with Naijarave for updates on the negotiations between the FG and the private sector.
