The Nigeria Social Insurance Trust Fund (NSITF) has called on employers to prioritize the long-term welfare of their workers by fully embracing the Employees Compensation Scheme (ECS), rather than focusing solely on paying salaries.
Speaking in Abuja during a courtesy visit by the leadership of the Oil Producers Trade Sector (OPTS) of the Lagos Chamber of Commerce, NSITF Managing Director, Oluwaseun Faleye, emphasized that sustainable productivity and industrial harmony are closely linked to employee welfare and future security.
He stated, “Employers should focus on comprehensive compensation schemes, health benefits, and other welfare policies that show genuine concern for employees’ futures. Workers’ demands are not always about salaries they want assurance that their future is secure.”
Faleye urged full compliance with the Employees Compensation Act (ECA), suggesting that adherence to the law should be a key requirement for awarding public and private sector contracts. He also stressed the need for companies to ensure that subcontractors and partners are enrolled in the ECS to avoid potential legal liabilities.
During the visit, OPTS leader Steve Ojeh praised the leadership of NSITF but raised concerns about proposals to raise ECS contributions beyond the current one percent of gross salaries and to extend the contribution base beyond basic salary, housing, and transport allowances.
The ECS, established under the 2010 Employees Compensation Act, provides compensation for work-related injuries, diseases, disabilities, or death at no cost to the employee. Employers are required to contribute one percent of their workers’ gross earnings.
Faleye reaffirmed NSITF’s commitment to employee welfare, pledging continued advocacy for safer, healthier workplaces across Nigeria.
Meanwhile, the Chairman of NSITF’s Board, Sola Olofin, has raised alarms over the possible threat posed by the Finance Act 2021 to the autonomy and financial integrity of the Fund.
Speaking at the 69th Board Meeting in Abuja, Olofin warned that ambiguity in the classification of NSITF contributions could undermine its role in providing a social safety net for Nigerian workers. He expressed concern over ongoing debates about whether such contributions fall under the revenue purview of the Federal Inland Revenue Service (FIRS).
“This is not just an accounting matter,it affects the very ability of NSITF to fulfill its statutory obligations,” Olofin said. He called on the Board and stakeholders to support the Fund’s efforts in clarifying its policy position and protecting its independence.
He added that continued advocacy, supported by solid legal and policy reasoning, is essential to preventing regulatory overreach that could hinder the Fund’s mission.
- Olofin concluded by reaffirming the Board’s commitment to managing the Fund in line with legal mandates, presidential directives, and its duty to the Nigerian workforce.
