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Workers compensation: FG backpedals as NLC holds ground

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The Federal Government has pledged to reverse deductions from the Employees’ Compensation Scheme managed by the Nigeria Social Insurance Trust Fund, to ease tensions with the Nigeria Labour Congress, following the threat of a nationwide strike by the union.

Last week, the NLC accused the Federal Government of diverting 40 per cent of NSITF contributions to the government’s treasury. The NLC said the move undermined workers’ social protection and demanded both an immediate refund and the full reconstitution of the National Pension Commission board. It warned that non-compliance could trigger industrial action nationwide.

The Employees’ Compensation Scheme is a social insurance programme providing financial support to employees who suffer work-related injuries, illnesses, disabilities, or death. The scheme is funded entirely by employer contributions, typically around one per cent of monthly payroll, with no contributions required from employees.

In a letter to the NLC dated August 16, 2025, NSITF Managing Director Oluwaseun Faleye confirmed that deductions from workers’ compensation contributions had occurred but said they were not a diversion of funds. The letter, seen by The PUNCH, was also sent to the Ministers of Labour and Finance, the Director-General of the Budget Office, and the Accountant-General of the Federation.

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Faleye said the deductions followed a federal policy introduced in December 2023 requiring all government-owned enterprises to remit half of their internally generated revenue to the treasury. The policy, issued by the Minister of Finance and Coordinating Minister of the Economy Wale Edun, was designed to boost government revenue and narrow a widening fiscal deficit, reflecting a fiscal strategy strongly championed by President Bola Tinubu.

Recall that the Federal Ministry of Finance circular (Ref: FMFCME/OTHERS/IGR/CFR/21/2021) dated December 28, 2023, introduced a policy of automatic deduction of 50 per cent from the internally generated revenue of all Federal Government-owned enterprises,” Faleye detailed in the letter.

NLC’s reaction

The labour union acknowledged receipt of NSITF’s letter but said its executive council will review the correspondence before deciding on the proposed strike, Assistant General Secretary Christopher Onyeka told The PUNCH.

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Onyeka described NSITF as a tripartite agency jointly owned by workers, employers, and the government and argued that it should not be treated as a revenue-generating body.

“The contributions to NSITF are intended to compensate workers in the event of injury. They are not government revenue and should not be used for fiscal purposes,” he said.

“Depleting these funds would compromise the agency’s ability to support workers when required. It is anomalous for the Ministry of Finance to classify NSITF as a revenue-generating entity.”

The union noted that the deductions began under the current administration and said letters were sent to the Ministry of Finance and NSITF over a month ago. The union received a response on Saturday. “Protecting these funds is our responsibility,” Onyeka added.

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Meanwhile, reacting to allegations that NSITF was seeking to amend the Employees’ Compensation Act in a way that could undermine workers’ rights, Faleye said the agency’s proposals were aimed at improving enforcement, not weakening protections.

As an organisation seeking to enhance its operational efficiency, we have engaged with the National Assembly through our annual retreats, attended by other tripartite stakeholders. At those retreats, we made suggestions and recommendations to members of the National Assembly, which we believe will further enhance compliance with the Employees’ Compensation Scheme,” the agency stated.

One of those recommendations, among others, is the need to give NSITF more powers to enforce compliance with the ECA on defaulting employers. This recommendation will better enhance and protect workers’ rights rather than undermine them.

The executive added that any further legislative action rests with the National Assembly. “As an organisation, it is not within our purview to make laws or stop the process of an amendment of any act by the National Assembly. That power resides solely with the legislature. On our part, we have resolved to engage the process at the appropriate time during stakeholders’ engagement exercises for such amendments, and we will advise all stakeholders to also engage appropriately so we can have an inclusive law when completed,” Faleye said.

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PenCom Governing Board

The NLC had also raised concerns over the non-constitution of the PenCom, describing the situation as a serious breach of the law that could undermine oversight of workers’ retirement savings.

In a statement issued last week by its Central Working Committee, the NLC said the absence of a fully constituted board contravenes the PenCom Act and other relevant statutes. The union warned that the current vacuum allows the federal government to exercise unilateral control over pension funds contributed by workers and employers, weakening statutory tripartite oversight and increasing the risk of mismanagement and political interference.

“The NLC notes with grave concern the non-constitution of the Governing Board of PenCom, in contravention of the PenCom Act and other statutes. This unlawful vacuum has allowed the government to solely superintend over the pension funds contributed by workers and employers, stripping away the statutory tripartite oversight and increasing the risk of mismanagement and political interference,” the statement said.

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The labour union stressed that pension funds represent deferred wages for workers, not government revenue, and called for immediate action to restore proper governance. “We demand the immediate constitution of the PenCom Board in full compliance with the law,” the NLC added.

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OPay Rubbishes Viral Shutdown Rumour, Warns Against Fake Publication

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By Our Correspondent.

 

Leading fintech company, OPay Digital Services, has dismissed as false and malicious a viral social media publication claiming that the company would embark on a prolonged break from September 1, 2026, urging its customers to withdraw or move their funds.

The fabricated publication, which gained traction across social media platforms on Sunday, purportedly warned OPay customers that the fintech would shut down its operations for an extended period beginning September 1.

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However, OPay, in an official response published across its verified social media platforms, described the claim as false, assuring customers that the company remains fully operational.

In a statement titled, “This is FALSE!”, the fintech said: “OPay is not going on break by September. We’re here, and we’re going nowhere! 💚”

The company further urged its customers and members of the public to scrutinise the viral publication for inconsistencies and rely only on its verified communication channels for authentic information.

“True OPay users know how to identify our official communications. Take a closer look at the viral post and you’ll spot the red flags.

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“Always verify before you share. Filter the noise! Follow our official pages for authentic OPay updates,” the company stated, ending the message with the hashtag, #OPayIsOkay.

Also reacting to the development, the Vice President, Public and Government Affairs, OPay Digital Services, Dr. Maxwell Loko, described the viral publication as “false, malicious and misleading.”

Loko said OPay was not shutting down and cautioned customers against taking any action based on the fabricated information.

“This post is false, malicious and misleading. OPay is not shutting down, and customers should not be misled into withdrawing their funds based on fabricated information,” he said.

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He urged members of the public to disregard the publication and depend exclusively on OPay’s verified platforms for official announcements.

“We urge the public to disregard this post and rely only on OPay’s verified communication channels for official information,” Loko added.

The OPay executive further warned that deliberate attempts to spread false information capable of creating panic or undermining confidence in a financial institution could attract legal consequences.

“The deliberate spread of false information designed to cause panic or undermine confidence in a financial institution is a serious matter and may have legal consequences,” he said.

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The development has also raised concerns over the growing use of fabricated digital content to damage the reputation of financial technology companies and potentially trigger unnecessary panic among customers.

While speculation has circulated in some quarters that the publication could be linked to competitive interests seeking to undermine OPay’s growing market position, no evidence has been publicly established to substantiate such claims.

OPay therefore advised its customers to exercise caution and verify financial or operational announcements through its authenticated communication channels before acting on them.

The company’s clarification effectively puts to rest the viral claim that it would cease or suspend operations from September 1, 2026, with OPay reaffirming that its services remain available to customers.

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70-year-old granpa nabbed for sexual assault of 8-year-old girl in Bauchi

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The Bauchi State Police Command has arrested a 70-year-old man, Usman Abubakar, over the alleged defilement of an eight-year-old girl in the Tsakanin Bayara area of Bauchi metropolis.

According to a statement issued by the Command’s Police Public Relations Officer, Superintendent of Police (SP) Nafiu Habib, the suspect was arrested following a complaint lodged at the ‘E’ Division, Yelwa, by the victim’s 48-year-old father on Wednesday, August 26, 2026.

According to the police, the father alleged that the suspect, who resides in the same area, lured his daughter to an uncompleted building on Sunday, August 24, where he allegedly sexually assaulted her.

The Command said its operatives immediately commenced action after receiving the report and arrested the suspect.

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The police further stated that the suspect allegedly confessed to the offence during interrogation.

Following the incident, the victim was taken to the Police Clinic for medical examination and necessary care.

The Commissioner of Police, CP Sani-Omolori Aliyu, condemned the alleged offence and assured members of the public that the matter would be thoroughly investigated.

The case has been transferred to the State Criminal Investigation Department (SCID), Bauchi, for discreet investigation and prosecution, according to the Command.

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The police reiterated their zero tolerance for sexual violence and child abuse, while urging parents, guardians and members of the public to remain vigilant and report suspicious activities to the nearest police station.

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Peter Obi sympathizes with victims of Abuja market fire

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Nigeria Democratic Congress, NDC presidential candidate, Peter Obi, has expressed sympathy with traders and business owners affected by the fire that gutted Eda Plaza in Jabi, Abuja, on Sunday.

Obi, in a statement posted on his X handle on Sunday, said the incident highlighted the need to strengthen Nigeria’s emergency-response systems, particularly the capacity of fire services.

A fire outbreak destroyed shops and goods reportedly worth millions of naira at the plaza, a building materials market opposite Chida Hotel in Jabi.

An eyewitness told the Nigerian Television Authority that the alarm was raised around 3am after a trader received a distress call about the fire.

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The eyewitness said the fire destroyed one of his brother-in-law’s two shops and a packing store, with roofing materials worth more than N20m reportedly lost in the blaze.

There were no reported casualties.

Reacting to the incident, Obi said his “heart goes out to the traders, artisans, workers, families and business owners whose goods, investments and livelihoods may have been affected by this unfortunate incident.”

He noted that the losses suffered by the traders represented more than merchandise, noting that they included years of savings, borrowing and sacrifice.

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“As a country, we cannot continue to lose businesses and livelihoods repeatedly to preventable disasters. Each time this happens, we gradually lose our productive capacity,” he said.

The former Anambra State governor said small businesses were “the backbone of our economy” and that losses suffered by traders could affect their families, workers and communities.

Obi urged authorities to strengthen emergency-response systems, particularly by ensuring that fire services were properly equipped and adequately staffed.

“As we grieve what has happened at Jabi Market, let us not wait for another market to burn before we act. Let this tragedy become a reason to strengthen our emergency-response systems, especially by ensuring that our fire service is properly equipped, adequately staffed and capable of responding swiftly to emergencies.”

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“We must protect our small businesses and ensure that Abuja, and indeed Nigeria, becomes a safer place to live, work and invest,” he added.

Obi also prayed for those affected by the incident and emergency responders.

“May God comfort every person affected by this disaster, restore the livelihoods that have been lost, and grant our emergency responders the strength and wisdom required at this difficult moment,” he said.

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