The House of Representatives on Tuesday, 7 July 2020 set up an ad-hoc committee to investigate an alleged breach of procedure for the suspension of the management and executive members of the Nigeria Social Insurance Trust Fund (NSITF) by the Minister of Labour and Employment, Dr. Chris Ngige.

This Committee was set up following a motion of urgent public importance raised by Hon. Leke Abejide (Kogi:PDP). In his motion, he stated the Minister of Labour and Employment by a letter dated 1 July 2020 conveyed the directive to suspend the entire management of NSITF for financial infractions and contravention of the Procurement Act. He noted that this unilateral action by the Minister breached a laid down procedure for the removal of executives of parastatals set out in a government circular/ presidential directive (SGF/OP/IS3/TI63 of 19 May 2020) issued by the Secretary to the Government of the Federation (SGF).

By this circular, Ministers cannot unilaterally or arbitrarily remove a serving Executive without recourse to the procedure contained in the circular. The prescribed procedure is that a supervising Minister through the Permanent Secretary of the Ministry would refer the matter to the Governing Board of the parastatal for necessary action. The circular further states that in the absence of a Governing Board, the Minister and Permanent Secretary are to act in accordance with the Public Service Administration guidelines. Furthermore, it was noted that it is for the SGF to implement and convey the decision of the President on a disciplinary case against an Executive in public service. Hon. Abejide also pointed out that the procedure in the circular is a mandatory guideline and all ministers are enjoined to strictly abide by it.

Hon. Abejide further averred that the Minister had written the Chairman of the Board on the matter but that the constituted Board of the NSITF did not meet to take a decision on it. He expressed dismay that the Ministry saddled with the responsibility of handling labour matters and resolving labour issues on behalf of the government and the Nigerian People can flagrantly disobey laid down rules and noted that such action makes the government look unserious. He observed that the Nigerian Employers Consultative Association (NECA), which represents 90% of contributors to the fund, also spoke out against the arbitrary action of the Minister.

In supporting the motion, Hon. James Abiodun Faleke (Lagos:APC) stated that the persons suspended in NSITF were targeted by the Minister for standing against certain actions he sought to take.  He further made weighty allegations against the Minister some of which include:

• the single handed alteration of budget lines in the NSITF budget to insert a N2 billion commissioned project;
• the nomination of a contractor that bought all the vehicles for NSITF in 2019 in the sum of N305 million;
• the compulsion of the NSITF to purchase for his use a Toyota Land Cruiser and Hilux in 2019;
• the insertion of the purchase of 4 SUVs in 2020 budget; and
• the obtaining of approval signed by his wife, Dr. Ngige, who works at the Office of the Head of Service of the Federation for the nomination of an insurance broker worth N100 million every year and the quick transmission of same to the NSITF for approval.

He concluded his submission by stating that this is a clear case of abuse of power by the Minister.

Also, Hon. Sada Soli (Katsina:APC) who once chaired a committee charged with investigating the activities of the NSITF stated that the action of the Minister contravened sections 6 (Cessation of membership), 7(4) (management of the Fund and staff of the Board) and 8 (Removal from office of the Managing Director and Executive Director) of the NSITF Act. He added that this issue has been the action taken by the Minister is unlawful and a disgrace. It was also pointed out that the Supreme Court has ruled against such action. He concluded that the Minister’s actions are suspicious and an attempt to cover up.

Following the debate on this motion, the House resolved to set up an ad-hoc committee to investigate procedural breaches of presidential directives by Minister of Labour and Employment, alleged breach in procurement procedure by the agency, financial malpractice and malfeasance, and report back in one week. Hon. Princess Miriam Onuoha (Imo:APC) was appointed as Chair of this Committee.