The National Assembly has asked the management of the Nigeria Social Insurance Trust Fund to engage with relevant agencies to ensure that Employee Compensation Scheme (ECS) deductions for treasury- funded agencies and non-treasury funded agencies are deducted and remitted to it as at when due.
The Senate and House of Representatives Committees on Labour and Employment said this during a two-day retreat organised by the NSITF in Lagos.
The committees resolved to ensure a stronger legislative collaboration to reposition the agency.
The committees told the Federal Government that the NSITF was not a revenue generating agency and should be removed from the Schedule I of the Fiscal Responsibility Act 2007.
In a statement by the NSITF General Manager, Corporate Affairs, Nwachukwu Godson, members of the Committees of both the Senate and the House of Representatives urged the management of the NSITF to work hard to bring all public sector employees under the Employee Compensation Scheme, ECS, given its social benefits and its impact on economic productivity.
The statement said: “Another key issue brought up is the matter of classifying NSITF as a revenue generating agency. The management and members of the Committees agreed that being a Trust Fund, NSITF is not a revenue generating agency, and should therefore be removed from the Schedule I of the Fiscal Responsibility Act 2007.
“It was noted that if achieved, this will exempt the NSITF from the mandatory 50% revenue deduction by the Ministry of Finance, thereby allowing the full utilization of its funds for its intended beneficiaries.
“With respect to its service delivery, it was resolved that it is critical for NSITF to undertake a digital transformation of its core functions, departments and programs as well as implement an electronic record system to improve service delivery and show transparency.
“In alignment with the Management’s plans, the Committee urged the Fund to embark on extensive advocacy to enable Nigerians better understand the criticality of the mandate of NSITF and the benefits that could accrue to employees if their employers subscribe to the Scheme should there be any injury, sickness, death or disability arising from work related activities.
“The new Managing Director of the agency, Oluwaseun Faleye had earlier delivered well-articulated roadmap termed “NSITF Strategic Priorities 2024 -2027” to the members of the National Assembly Committee. In seeking their buy-in to his vision, the Managing Director outlined the strategic objectives of the Fund under five key pillars.
“Strengthening governance and oversight; managing stakeholders’ engagement; ensuring transparency and accountability in respect of the Fund’s activities as well as developing extensive monitoring and evaluation framework throughout the Fund;
“Transforming NSITF and improving service delivery nationwide with competent and equipped frontline workers;
“Increased coverage of public and private sector beneficiaries particularly focusing on the informal sectors to meet their evolving needs.
“Continuously adapting benefits and services of the Fund to meet the changing needs of beneficiaries, while ensuring that the Fund remains relevant and effective; and
“Optimizing and refining investment strategies, managing risks and growing the Fund’s assets in line with its liabilities.”
According to the statement, the retreat, which was well attended by all members of the Senate and House Committees on Labour and Employment, concluded with a communique which resolved amongst other resolutions, to forge a stronger collaboration between the NSITF and the National Assembly that would foster an NSITF that can implement its mandate of providing a social safety net for Nigerian workers in both the public and private sectors.
Reacting to the success of the retreat, the Senate Committee Chairman on Labour and Employment, Senator Diket Plang said: “I am highly delighted because of the robust engagement we have had at this retreat. The new vision for NSITF presented by the Managing Director further gives me confidence that the President has made a great choice in appointing the new leadership for the Fund.
“I have no doubt that NSITF is in good hands and will grow in leaps and bounds, satisfying the yearning of Nigerians. On our part, we shall do everything within our legislative sphere of influence to aid their success.”
His counterpart in the House of Representatives, Adegboyaga Adefarati, stated: “This is one of the best retreats I have ever attended. If you look around, all of us from the House Committee on Labour are here. Despite the fact that the House is on recess, we have however taken our time to attend this very important retreat.
“From the presentations, no one is in doubt that the Managing Director has the capacity, character, and competence to build a stronger NSITF. What is left is to give him every support to succeed.”
One of the promises made by the new Managing Director of the NSITF, Oluwaseun Faleye upon assumption of office few weeks ago was to intensify stakeholder engagements at the sub-national levels to ensure that workers at the state and local government levels are availed the abundant benefits of the Employees’ Compensation scheme (ECS).
Recall that the Employees’ Compensation Act (ECA 2010) provided that all employers in the public and private sector across the federation shall contribute one percent of their total emoluments to the NSITF to compensate workers or their dependents in case of injury or death in the course of work. Recall also that the Employees’ Compensation Scheme was further buoyed by the October 2014 circular by the Secretary to the Government of the Federation on compulsory 1% deduction from the emoluments of all MDAs and the payment of backlog of contributions since 2012. This was a follow-up to the decision of the extra-ordinary Federal Executive Council meeting of May 16, 2023, which approved the universal implementation of the ECS across all tiers of government.
As it is today however, many state governments are yet to fully enrol into this no-fault scheme which has since inception in 2011 assisted thousands of the victims of work-related injuries or their beneficiaries with cash and non-cash benefits. It is therefore not surprising that the new managing director made the expansion of the ECS to the states and local governments in line with the social security inclusion of the ILO Convention 102 a top agenda of his leadership.
It is in line with this that he led a delegation comprising members of the National Assembly Committees on Labour and Employment on an advocacy visit to the Lagos State governor, Babajide Sanwo-Olu. The visit came on the eve of a two-day Lagos retreat organized by the NSITF to acquaint members of the National Assembly Committee on Labour with the mandate and processes of the fund as well its procedures. For Faleye, it was a home-coming of sorts. He was an Assistant Director in the Lagos State Civil service and cut his teeth in private law practice with the sprawling law firm in the city. On hand therefore to accompany Faleye on the mission to Lagos apart from the Executive Directors of the NSITF were the chairman of the both the Senate and House of Representatives committees on Labour, Senator Diket Plang and Adegboyaga Adefarati respectively among other members of the National Assembly.
The visit, which incidentally brought together key figures in the labour policy and administration, highlighted the importance of collaboration between federal agencies and state governments in mitigating push factors of poverty in the world of work. It further underscores the commitment of the NSITF in fostering strong relationships with the sub-national governments in quest to uplift the lots of the workers. While addressing the governor, Faleye said he led the team to solicit for the enrolment of the Lagos State workforce into the Employees’ Compensation Scheme. He noted that being a leading state in the federation, embracing the ECS would be a big motivation for other states to do likewise. He said, “We are here on a two-day retreat on how we can collaborate with lawmakers so they can better understand what we do and use their legislative influence to help us achieve the mandate of the fund. He added, “The Employees Compensation Scheme, which is our mandate is a no fault scheme which replaced the Workman Compensation Act. This Act makes it compulsory for every employer of labour in the public and private sector to enrol into the ECS by paying 1% of its total emolument to the NSITF to take care of the workers or their dependents in case of accident or death in the course of work. We have robustly been doing this since 2012, and we want to continue doing it . We know Lagos State can give us critical support in what we are doing.”
While responding to the request by the NSITF, the Sanwo-Olu echoed the need for transparency and accountability in the administration of the agency, further charging the NSITF to be responsive in dispensing claims and compensations to the people. He added that even though the Lagos State government has a robust insurance package for its workers, Lagos will be willing to explore collaboration with the NSITF to further boost social security to the Lagos workers.
Sanwo-Olu’s pep on accountability and responsiveness in discharge of compensation to injured workers comes in synch with the cardinal agenda of the new managing director who has already cut the ice in the restructuring agency for efficiency through the digitization of its processes and procedures. He had while taking briefings from the agency’s heads of department two weeks ago assured that no stone will be left unturned in re-positioning the fund to be at par with similar agencies in global best practices. Expressing determination to clear all the inhibiting factors to the digitization of the NSITF, he described it as key to efficiency as well as transparent delivery of its programmes. Faleye has also taken steps to overhaul the fund’s claims and compensation process to widen the net and accommodate more injured workers, noting that percentage of injured workers under different categories of claims was not at par with his vision.
While the chairman of the Senate Committee on Labour, Senator Plang Diket said the National Assembly was committed to assisting the NSITF discharge its responsibilities to the Nigerian workers, his counterpart in the House of Representatives, Adegboyega Adefarati commended Sanwo-Olu for being worker friendly, hoping that bringing the benefits of the ECS to the Lagos workers will be accorded needed attention.
•Nwachukwu is the General Manager, Corporate Affairs, NSITF.
The Nigeria Social Insurance Trust Fund (NSITF) has compensated over 103,000 persons, including 111 persons who got prosthetics limbs, in the last 13 years.
Over 164,000 employers and 8.4 million employees were also registered, while the agency conducted 25,000 Occupational Safety and Health (OSH) activities.
Managing Director, NSITF, Oluwaseun Faleye, stated this yesterday at the opening of a two-day retreat organised by the agency for the Senate and House of Representatives Committees on Labour, Employment and Productivity, held in Lagos. The retreat was themed ‘Building a Stronger NSITF’.
According to Faleye, the retreat was to establish synergy between the agency and the lawmakers, towards finding solutions to some of the agency’s challenges.
He noted that the retreat was also to ‘serve as a platform for sensitisation, open dialogue, strategic planning, and collaborative problem-solving aimed at revitalising and optimising this essential fund’.
Faleye said there is a need for the government to ‘rethink and strengthen the agency’.
He added: “We will ensure long-term financial sustainability and effectiveness of NSITF by enhancing risk management practices, and improving service delivery to meet the evolving needs of beneficiaries, while maintaining transparency and accountability.
“The agency is making moves to get the Federal Government’s approval to include the NYSC in the scheme.”
Chairman of the Senate Committee on Employment Labour and Productivity, Senator Diket Plang, said the retreat was timely as it would help the Executive, Legislators and MDAs understand how to tackle issues surrounding compensation of injured and deceased workers.
“This retreat is very timely and I believe NSITF will be better for it in the end. Where the legislators, the executives and the MDAs have understanding of what to do, it will lead to a more successful NSITF,” he said
A member of the Committee, Senator Victor Umeh, urged the agency to invest the fund realised from one per cent workers contribution in building affordable housing for workers ‘to reduce the housing deficit among the workforce’.
The lawmakers also praised Faleye for ensuring that injured workers get compensation promptly.
However, member of the House of Representatives, Ifeanyi Uzokwe, lamented the deduction of 40 per cent from the agency’ fund, saying it was affecting its operations.
Chairman of the Senate Committee on Establishment and Public Service, Oluwaseyi Faseyi, also noted that the conditions of work in many companies are hazardous for workers, and so demanded that more private companies be brought into the scheme for the benefit of their workers.
Other issues raised included inability of the agency to access government’s contribution regularly, non-digitisation of its processes, as well as inability of compliance officers to register MDAs.
The lawmakers however promised that the challenges will be debated on the floor of the House.
The Nigeria Social Insurance Trust Fund (NSITF) has compensated over 103,000 persons, including 111 persons who got prosthetics limbs, in the last 13 years.
Over 164,000 employers and 8.4 million employees were also registered, while the agency conducted 25,000 Occupational Safety and Health (OSH) activities.
Managing Director/Chief Executive Officer of the NSITF, Oluwaseun Faleye, stated this at the opening of a two-day retreat organised by the agency for the Senate and House of Representatives Committees on Labour, Employment and Productivity, held in Lagos.
The retreat was themed ‘Building a Stronger NSITF’.
According to Faleye, the retreat was to establish synergy between the agency and the lawmakers, towards finding solutions to some of the agency’s challenges.
He noted that the retreat was also to ‘serve as a platform for sensitisation, open dialogue, strategic planning, and collaborative problem-solving aimed at revitalising and optimising this essential fund’.
Faleye said there is a need for the government to ‘rethink and strengthen the agency’.
He added: “We will ensure long-term financial sustainability and effectiveness of NSITF by enhancing risk management practices, and improving service delivery to meet the evolving needs of beneficiaries, while maintaining transparency and accountability.
“The agency is making moves to get the Federal Government’s approval to include the NYSC in the scheme.”
Chairman of the Senate Committee on Employment Labour and Productivity, Senator Diket Plang, said the retreat was timely as it would help the Executive, Legislators and MDAs understand how to tackle issues surrounding compensation of injured and deceased workers.
“This retreat is very timely and I believe NSITF will be better for it in the end. Where the legislators, the executives and the MDAs have understanding of what to do, it will lead to a more successful NSITF,” he said
A member of the Committee, Senator Victor Umeh, urged the agency to invest the fund realised from one per cent workers contribution in building affordable housing for workers ‘to reduce the housing deficit among the workforce’.
The lawmakers also praised Faleye for ensuring that injured workers get compensation promptly.
However, member of the House of Representatives, Ifeanyi Uzokwe, lamented the deduction of 40 per cent from the agency’ fund, saying it was affecting its operations.
Chairman of the Senate Committee on Establishment and Public Service, Oluwaseyi Faseyi, also noted that the conditions of work in many companies are hazardous for workers, and so demanded that more private companies be brought into the scheme for the benefit of their workers.
Other issues raised included inability of the agency to access government’s contribution regularly, non-digitisation of its processes, as well as inability of compliance officers to register MDAs.
The lawmakers however promised that the challenges would be debated on the floor of the House.
Newly-appointed Managing Director of the Nigeria Social Insurance Trust Fund (NSITF), Oluwaseun Faleye has urged the Lagos State government to support its agenda of improving employee-employer relationship.
Faleye, during a courtesy visit to Governor Babajide Sanwo-Olu at the State House in Ikeja, yesterday, said the NSITF was in the state on a two-day retreat to discuss collaborations with lawmakers towards achieving its objectives.
He was accompanied by Chairmen of the Senate and House of Representatives Committee on Employment, Labour and Productivity, Senator Diket Plang and Olugbenga Adefarati, as well as other members of the committee.
According to Faleye, the agency wishes Lagos to keep complying with the laws guiding employee-employer relationship to serve as a model for other states.
He said: “We are here on a two-day retreat on how we can collaborate with lawmakers so they can better understand what we do, and use their legislative influence to help us achieve our aims.
“NSITF was designed to formulate the employer scheme, where we provide cash and non-cash support to injured or deceased workers arising from hazards from their work place. We have been doing it robustly since 2012, and we want to continue doing it. We know Lagos State can give us critical support in this regards.
“That is why we call for your support in making NSITF’s Requirement Certificate an integral part of your sub-contractual document with third parties. The importance it gives to workers and employees generally will also contribute to the progress of the state.
“Whenever workers are sick, the compensatory package gives succour to the employers and employees. We seek your support to ensure Lagos is in compliance with the law in terms of compensation. The Act applies to both private and public sectors, including the government. The acceptance of the scheme by Lagos State government will send a strong signal for other states to follow.”
Sanwo-Olu admonished the agency to be transparent and accountable, as well as render quality service for the benefit of the people.
He boasted that the government has a robust insurance package for its workforce, and promised his administration’s willingness to harness the areas of collaboration with the NSITF to achieve its objectives, as well as explore benefits of the fund for workers and Lagosians.
Senator Plang said lawmakers are committed to ensuring employers are protected when at work in case of hazards.
“As legislators, the NSITF is a product of the parliament, and we have to find out how some MDAs are performing. Where there is a need to make changes, we make them increase productivity.”
The newly-appointed Managing Director and Chief Executive Officer of the Nigeria Social Insurance Trust Fund (NSITF), Oluwaseun Faleye, has urged the Lagos State government to support its agenda of improving employee/employer relationships.
Faleye, during a courtesy visit to Governor Babajide Sanwo-Olu at the State House in Ikeja, said the NSITF was in the state on a two-day retreat to discuss collaborations with lawmakers towards achieving its objectives.
He was accompanied by chairmen of the Senate and House of Representatives Committee on Employment, Labour and Productivity, Senator Diket Plang and Olugbenga Adefarati, as well as other members of the committee.
According to Faleye, the agency wishes Lagos to keep complying with the laws guiding employee/employer relationships to serve as a model for other states.
He said: “We are here on a two-day retreat on how we can collaborate with lawmakers so they can better understand what we do, and use their legislative influence to help us achieve our aims.
“NSITF was designed to formulate the employer scheme, where we provide cash and non-cash support to injured or deceased workers arising from hazards in their workplace. We have been doing it robustly since 2012, and we want to continue doing it. We know Lagos State can give us critical support in this regard.
“That is why we call for your support in making NSITF’s Requirement Certificate an integral part of your sub-contractual document with third parties. The importance it gives to workers and employees generally will also contribute to the progress of the state.
“Whenever workers are sick, the compensatory package gives succour to the employers and employees. We seek your support to ensure Lagos is in compliance with the law in terms of compensation. The Act applies to both private and public sectors, including the government. The acceptance of the scheme by the Lagos State government will send a strong signal for other states to follow.”
Governor Sanwo-Olu admonished the agency to be transparent and accountable, as well as render quality service for the benefit of the people.
He boasted that the government has a robust insurance package for its workforce, and promised his administration’s willingness to harness the areas of collaboration with the NSITF to achieve its objectives, as well as explore the benefits of the fund for workers and Lagosians.
Senator Plang said lawmakers are committed to ensuring employers are protected when at work in case of hazards.
“As legislators, the NSITF is a product of the parliament, and we have to find out how some MDAs are performing. Where there is a need to make changes, we make them increase productivity.”
The Managing Director of the Nigeria Social Insurance Trust Fund (NSITF), Oluwaseun Faleye has pledged to overhaul the claims and compensation process of the agency to ensure that more injured workers who have genuine claims are rehabilitated.
He also said the reform would include assisting them to return to their original employment or teaching them new skills.
Faleye said where the injured workers cannot be rehabilitated, the agency would ensure that the timeline for the payment of their claims was fastened.
He said this during a meeting with heads of the department of the agency in Abuja.
“My hope is that in days ahead, we bring in more beneficiaries than we currently have. We need to do more by reviewing the claims processes and procedures in a manner that grants a wider access to benefits by injured workers who are registered with the Fund. We need to ramp up our capacity so we can do more,” he stated.
He emphasised the need to undertake more stakeholders’ engagement, especially at the state and local governments, to drive employees compensation scheme
( ECS) compliance at the sub-national level, noting that the benefits of the ECS are quite relevant to employees at that level of governance.
Faleye said his cardinal vision is to modernise the agency as a solvent organisation capable of seamless delivery of the Employees’ Compensation to the world of work.
In a statement by the General Manager, Corporate Affairs of the NSITF, Nwachukwu Godson, Faleye said he would leave no stone unturned in re-positioning the NSITF to be at par with similar agencies in global best practices.
“Cardinal on our agenda is to successfully modernize and digitize the processes and procedures of the NSITF to align them with the realities of the time,” Faleye stated.
He assured that his administration would clear all the inhibiting factors that currently hindered the digitisation of the agency.
Faleye also said his administration would embark on an ambitious programme to revamp the organisation with digitisation as key.
He said: “We must achieve this lofty height without which the NSITF will remain at the backwaters. And in achieving this, I’m not going to cut corners or give in to any issue that will derail us. I intend to build a data-driven and customer-centric agency.
“I’m going to be very fair to all handling our digitization project. I will look at what has been done and what was proposed, what was approved, and what was delivered. I will look at the capabilities to undertake that project. I will dispassionately assess the situation with the aid of an independent entity so that decisions can be taken in the interest of our organisation.
“I wish to leave behind an agency where all services can be initiated and completed on a digital platform. An efficient organization which members of the public can digitally interact with in a manner that enhances transparency and efficiency.”
He added that the NSITF needed a holistic approach to digitisation in a way that integrates and synchronises the processes of all departments as units of one whole while achieving a critical handshake with relevant agencies of government as well non-governmental agencies in data-sharing to re-shape the future of the fund. He averred that the functions of the fund’s core service departments are interdependent, noting that a lag in one affects the other.
“The more we are able to rehabilitate, return people to work, compensate, reach out to workplaces with health and safety programmes in pursuit of safe environment, the more latitude we grant our Compliance to go on advocacy and register more employers as the reach and the benefits of the ECS will become more evident to employers,” he stated.
The Managing Director/ CEO, Nigeria Social Insurance Trust Fund (NSITF), Oluwaseun Faleye, has pledged to reengineer the organisation and reposition it as the apex social security agency.
In a statement signed by the General Manager, Corporate Affairs, NSITF, Nwachukwu Godson, Faleye said: “My mission in this organisation is to join the existing stakeholders to build a much more sustainable organisation. I am new and yet to know all the issues and find solutions to them but if we put our heads together, we shall be able to build a much more vibrant NSITF that can deliver its mandate to its key stakeholders including the Nigerian workers and employers as well as the staff of the fund.”
Faleye further said his administration will carry out organisational restructuring to position the NSITF for operational efficiency and urged the staff to remain dedicated to duty and give support to his administration, assuring that in the days ahead, seamless measures will be taken to enhance welfare and ease duties.
He commended the former Managing Director, Maureen Allagoa, for the services she rendered to the NSITF and for presenting a handover note.
“I want to use this opportunity to thank the former Managing Director for being gracious enough to provide a handover note even though she was not able to present it physically.
Irrespective of sentiments, she has given time and effort to lead the organisation and that should be applauded and appreciated.
The Managing Director/Chief Executive Officer of the Nigeria Social Insurance Trust Fund (NSITF), Oluwaseun Faleye, has pledged to reengineer the organisation and reposition it as the apex social security agency.
Faleye, who is an accomplished legal practitioner, corporate finance expert, and public intellectual, vowed to leave the agency better than he met it.
He said this on Tuesday, July 16, during a meeting with the management of the agency along with the newly appointed Executive Director of Operations, Mojisolaoluwa Alli-Macaulay.
In a statement by General Manager, Corporate Affairs, NSITF, Nwachukwu Godson, Faleye said: “My mission in this organisation is to join the existing stakeholders to build a much more sustainable organisation.
“I am new and yet to know all the issues and find solutions to them but if we put our heads together, we shall be able to build a much more vibrant NSITF that can deliver its mandate to its key stakeholders including the Nigerian workers and employers as well as the staff of the fund.
“Please bear in mind that my intention is to leave this organisation much better than I met it. It is a worthwhile dream, given the impact we have in the generality of the world of work.”
Faleye further said his administration will carry out organisational restructuring to position the NSITF for operational efficiency.
He added: “At the core of this is some level of organisational restructuring and I have no doubt about that. What that organisational restructuring will be, I don’t know. We need to engage deeply before one can say that. And the essence of that restructuring is to create some level of efficiency in our service delivery
“I understand that certain requests have been made regarding detailed needs assessment of each department and unit. I will soon begin to look at them, to understand where we are and what needs to be done. What we will be doing in the coming days is to dig deep and see how this can be achieved.”
He urged the staff to remain dedicated to duty and give support to his administration, assuring that in the days ahead, seamless measures will be taken to enhance welfare and ease duties.
Faleye commended the former Managing Director, Maureen Allagoa for the services she rendered to the NSITF and for presenting a handover note.
He said: “I want to use this opportunity to thank the former Managing Director for being gracious enough to provide a handover note even though she was not able to present it physically. Irrespective of sentiments, she has given time and effort to lead the organization and that should be applauded and appreciated.
“I know this responsibility is a challenge but it is a challenge I am competent enough to handle efficiently.”
Alli-Macaulay assured of a smooth working relationship between the new executive and other stakeholders of the agency.
The Executive Director of Finance and Investment, Adegoke Adediji commended the choice of the new Managing Director, urging him to use his links in the political system to accelerate the reform of the agency.
Adegoke later presented the handover note submitted by the former Managing Director to Faleye.
The Executive Director of Administration, Prof. Gabriel Okenwa said President Bola Tinubu could not have made a better choice in appointing Faleye and Alli-Macaulay to the agency.
Indications are that the Nigeria Social Insurance Trust Fund (NSITF) is now high on performance and productivity in its quest to promote sustainability at the workplace by addressing the legion of challenges associated with the Employees Compensation Scheme (ECS), reports Ibrahim Apekhade Yusuf
From available information, the Fund is now living to its billing as a pro-worker organisation offering succour where and when necessary.
Investigation by The Nation revealed that between March 2023 and May 2024, a total of 20,531 workers benefited from different compensation packages, like disability payment, medical expenses refund, loss of productivity and death benefits respectively.
For instance, Salami Olayinka, Jubril Ismaila, Umoru Bala, Lamidi Oluwatobi Ismaila, Abdullahi Jamilu Garba, Godwin Lawrence, Abdul Rahman Siddik, were all employees at a construction and food companies, got disability benefits after suffering bodily harm.
Others like Samuel Sunday of Vono Furniture Products Ltd, Shedrack Ali of WoodStyles Limited, Olusesi Olalekan of Workmen & Talents Agency Ltd, Davison Aigbekaen of Xerox H.S Nigeria Ltd, Itafor Emmanuel of Vision Job 24 7 Nig Ltd,
Ekeugo Obinna of Vik Industries Ltd, Sylvester Markson of Veto Tech Company Limited, all got loss of productivity payment, just as Zakka Yusuf of A. G Ferrero and Company Limited, Wogu Ihechi Peace of Abia State College Of Health Science & Management Technology, Ugwuoke Chinedu Keneth of Abumet Nig Ltd, Momoh Victor O of Access Bank Plc, Ndifereke Monday Akpan of Ace Foot Wear Manufacturing Company Limited, Idris Abdulhamid of Adama Beverages, Giscard Stanley Norris of Adamawa Home And Savings Limited, Yisau Abayomi of Adayira Haulage Ltd, Abuh Inalegwu Of Africa Still Mills Nigeria Limited enjoyed medical expenses refund.
Among those who earned death benefits on behalf of their deceased families include dependents of Osunbade David of British American Tobacco, Bala Obadiah of 4u Supermarket Ltd, Sindama Julius of A & P Foods Ltd, Maurison Ezesinachi Caleb of ABC Transport, Augustine Akowe of Abuja Steel Mills Ltd, Abubakar Dauda of Abuja Urban Mass Transport, Nyerhovwo Tonukari of Academic Journals Limited to mention just a few.
How did the NSITF, which hitherto had suffered bashing from all quarters due to what was largely perceived as their predilection to negligence and anti-worker welfare, one may be tempted to ask?
One person who should know better offers a plausible explanation.
Barr. Maureen Allagoa, the Managing Director of the NSIFT during an interactive session said the modest success achieved by the Fund so far is all thanks to the renewed commitment of the entire team.
According to her, the Fund has achieved a milestone in the discharge of its statutory mandate of providing adequate compensation and rehabilitation to Nigerian workers and their registered beneficiaries who have sustained injuries, occupational diseases, disabilities or died in the course of work.
Although the Nigeria Social Insurance Trust Fund (NSITF) metamorphosed from the National Provident Fund (established in 1961), to a Trust Fund (in 1993, by decree No.37) and to a Social Insurance Trust Fund (Avia the enactment of the Employees’ Compensation Act (ECA) by the National Assembly, on December 17, 2010), the provision for workplace safety net and social security for workers has been a core mandate of the agency.
First, the signing of the Employees’ Compensation Act (ECA) into law by the National Assembly brought fundamental restructuring to the fund.
The Act mandates the NSITF to provide adequate compensation and rehabilitation to all employees and their registered beneficiaries in case of injuries, death, occupational diseases or disabilities that occur in the workplace or in the course of work.
The ECA further empowers the NSITF to maintain a solvent compensation fund for employees and employers and charged it to establish an efficient procedure for the enforcement of occupational safety and health standards to prevent workplace accidents. And in 2014, the amended Pension Reform Act of 2014 further directed the NSITF, in Section 84(2), to provide social security services to all eligible Nigerians.
Allagoa noted that the Fund, between July 2011, when the ECA came into operation and 2024, has registered over 145,000 employers and 7.4 million employees into the scheme, paid claims and compensation to over 103,000 beneficiaries, including 111 persons who received artificial limbs (prosthetics) and 11 beneficiaries who were sent abroad for further medical treatment.
Equally, she said the Fund has spent about N6.6 billion within the period and has taken occupational safety and health (OSH) training to workers in over 25,000 registered companies.
In addition, the Fund’s many successes in recent years, Allagoa said: “We are embarking on an expansion policy, adopting the branch-in-branch strategy with Lagos region as a pilot while also creating service delivery centres across the country to further bring our services to all Nigerians using Bonny Service Delivery Centre as a pilot.
“We will expand our operations and coverage into the informal sector and other unreached areas in dire need of social security services. In addition to reaching more clients, this will reduce commuting distance for staff on compliance drive.”
On challenges, the fund noted that defaulting in the payment of the mandatory one percent contribution for ECS comes top, among others. In a recent presentation in Abuja, the fund added that government MDAs are chief culprits in this regard.
The Fund stated: “There are challenges which have encumbered the fulfillment of our mandate among which is the implementation of the deduction of 40 percent of the employers’ contribution to the fund by the Ministry of Finance as an operating surplus under the premise of the implementation of the Fiscal Responsibility Act.
“N1.4bn was deducted in 2022 and paid into the Consolidated Revenue Fund (CRF) in line with the Finance Act 2020. This is notwithstanding the fact that the NSITF is not a revenue generating agency but a tripartite structure holding funds in trust for the benefit of employees under the ECS and has no operating surplus.
“The NSITF is not treasury-funded and does not draw from the Consolidated Revenue Fund of the federation. Also, ECA 2010 does not cover some areas of claims and compensation in the informal sector and these gaps in the law have variously been exploited by dubious employers to the detriment of employees. Amendment to the Act is therefore needed.
“Another hurdle is implementation of the recent FEC approval and subsequent issuance of a circular by the Office of the Secretary to the Government of the Federation for the deduction at source of the one percent ECS contributions for all workers in the public service of the federation and the retrieval of backlog from 2012 to date.
“Though the implementation of the ECS in all MDAs has received support from relevant quarters of authority, it further needs concerted efforts to ensure that contribution will begin this year. The fund needs the assistance of the Attorney General of the Federation for a fiat to prosecute some listed defaulting and recalcitrant employers as well as facilitate the gazetting of all the lawyers working with the fund to enable them appear on behalf of the NSITF in court for the recovery of outstanding monies due to the fund.
“Going forward, the NSITF needs the support of the tripartite stakeholders to build ECS into a world class social security institution capable of triggering social change and poverty reduction in Nigeria.”
“To this end, the NSITF obviously needs all the help it can get, especially from the Minister of Labour and Employment, to interface with the Ministers of Finance and that of Budget and National Planning to facilitate the payment of the ECS contribution arrears of 2012 to 2023 which runs into billions, to interface with the National Assembly for the amendment of the ECA 2010. Also, to interface with the Minister of Finance and the Accountant General of the Federation to remove NSITF from the schedule of the Fiscal responsibility Act for the deduction of 40 percent of contributions received from the private sector. Over N1.4 billion was deducted from our account in 2022 and much more may be deducted this year save for your intervention.”
Also, NSITF, as part of its efforts to spread the coverage of the Employees Compensation Scheme (ECS) across the country, expanded its branches to 56 across 12 regions in the country.
The Fund equally has two subsidiaries: a Trust Fund Pension and Pro-Health HMO. The Trust Fund manages retirement savings and pensions, while the Pro-Health HMO, a public-private-driven enterprise, provides healthcare insurance services to registered workers. It also has developed an operational plan with 50 objectives to boost ECS in line with the eight-point agenda of President Bola Tinubu’s administration in the areas of poverty alleviation and economic growth.
Meanwhile, through the efforts of the current management of the fund, the Secretary to the Government of the Federation, Senator George Akume, revealed that he has, in a circular dated September 22, 2023, directed all the Federal Government’s ministries, departments and agencies (MDAs) to commence the mandatory contributions of one percent of the emoluments of all public servants to the Employees’ Compensation Scheme of the NSITF. This is following the decision of the Extraordinary Session of the Federal Executive Council under President Buhari, which had on Monday, May 15, 2023, given the approval for the statutory one percent deduction.
In the circular, the Minister of Finance is directed to “deduct the contributions from source and remit same to the NSITF for the payment of claims and compensations to deserving beneficiaries for death, injury, disease or disability sustained in the course of duty as provided in the Employees’ Compensation Act, 2010, Act No. 13.” It further directed all MDAs to “ensure strict compliance with the circular.”
Furthermore, management made further inroads recently by getting the nod of many Federal Government-owned institutions, state governments and private sector organisations and institutions that now implement ECS and Occupational Safety and Health (OSH). Notable among the states are Akwa Ibom, Kano, Lagos, Plateau, Abia, Rivers, Sokoto, Delta, and especially Bauchi, Oyo and Yobe which have enrolled. The management has also relaxed the time frame for capturing an accident victim to a reasonable period of time.
Moreover, the fund has, in the past one year, conducted 5,592 Occupational Safety and Health exercises in different workplaces across the country.
Echoing similar sentiments, the General Manager, Corporate Affairs of the Fund, Nwachukwu Godson observed that “Some of the major workplaces where the exercises were conducted are Schulmberger, Port Harcourt; Julius Berger Construction Company, Abuja; Dangote Cement Bagging and Packaging, Lokoja; Sundry Food, Rivers State; Shellberg Manufacturing, Lagos; Federal Palace Hotel, Victoria Island, Lagos State, among other hundreds in informal sector and small scale companies.”
