Regulated pensions for employees in the Organized private sector, began in 1961 with the establishment by an Act of Parliament of the National Provident Fund (NPF). The Act provided income loss protection for employees as stipulated by the International Labour Organization (ILO) Convention 102 of 1952 on Social Security (minimum Standard). Under the NPF the monthly contribution was 6% of basic salary, subjected to a maximum of N8.00 to be contributed in equal proportion of N4.00 each by the employer and the employee.
In 1993, the National Provident Fund (NPF) metamorphosed into the Nigeria Social Insurance Trust Fund (NSITF) following the promulgation of the NSITF Decree No 73 of 1993. The Act mandated all employers of labour in the Organized Private Sector (OPS), with a workforce of not less than 5 persons to register as members of the scheme and remit monthly contributions. The NSITF was a Defined Benefits Scheme and the initial monthly contribution was 7.5% of basic salary, of 2.5% to be borne by the employee, and 5% by the employer. This was reviewed upwards in 2001 to 10% of gross salary, 3.5% to be borne by the employee and 6.5% by the employer.
