3 months ago
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The Nigerian Social Insurance Trust Fund (NSITF) has announced its intention to extend insurance coverage to National Youth Service Corps (NYSC) members as part of an ambitious plan to enhance its operations and broaden its impact.
Speaking at a retreat organised for the Senate and House Committees on Labour and Employment in Lagos at the weekend, NSITF Managing Director, Oluwaseun Faleye, unveiled the agency’s strategic goals, which include increasing corporate registrations by one million yearly and declassifying the NSITF as a revenue-generating agency.
Faleye stressed the need to provide insurance coverage to NYSC members, who are currently excluded from the provisions of Section 84 (2) of the Pension Reform Act 2014.
“Our target is to provide insurance to youth corps members who were originally not included in the legislative framework. This is a critical step in ensuring that all segments of Nigerian society are adequately protected under the NSITF scheme,” Faleye said.
He further stated that the agency is actively seeking federal government approval to integrate NYSC members into its insurance scheme.
The retreat, themed ‘Building a Stronger NSITF,’ was organised to foster collaboration between the agency and lawmakers and to address the challenges facing the NSITF.
Faleye explained that the event was intended to serve as a platform for sensitization, strategic planning, and problem-solving.
“This retreat is a significant step towards revitalising and optimising this essential fund. We need to rethink and strengthen the agency to ensure long-term financial sustainability and effectiveness,” he said.
The Managing Director also highlighted the agency’s efforts to increase compliance among Ministries, Departments, and Agencies (MDAs) regarding the one per cent Employees’ Compensation Scheme (ECS) deductions.
According to him, NSITF has requested that the Federal Government issue a circular to MDAs, directing immediate compliance with the Federal Executive Council’s approval for one per cent ECS deductions from their budgets.
This will ensure that all relevant bodies contribute their fair share to the fund, Faleye noted.
He reiterated that the NSITF’s primary mandate is to manage funds for the protection of Nigerian workers, not to generate revenue.
In his remarks, Faleye underscored the agency’s achievements since its inception, stating that over 164,000 employers and 8.4 million employees have been registered under the scheme.
He also revealed that the NSITF has paid compensation to over 103,000 beneficiaries, including 111 individuals who received prosthetic limbs. The agency has also conducted 25,000 Occupational Safety and Health (OSH) activities across the country.
“These milestones demonstrate our commitment to protecting the Nigerian workforce and ensuring their welfare is prioritised,” he said.
Faleye’s leadership, which began in July under the administration of President Bola Tinubu, has been commended by members of the National Assembly.
The lawmakers praised the Managing Director for his proactive approach to ensuring compensations are paid promptly to injured workers under the agency’s scheme.
One of the key challenges discussed during the retreat was the lack of seriousness among some MDAs in paying their contributions to the fund. Faleye pointed out that many MDAs had not been consistent in their payments, which has affected the fund’s overall effectiveness.
He urged the lawmakers to assist in driving compliance across the board. “We plan to collaborate with the National Assembly to ensure that all MDAs comply with the ECS deductions. This will significantly improve the fund’s capacity to fulfil its mandate,” he stated.
Chairman of the Senate Committee on Employment, Labour, and Productivity, Senator Diket Plang, lauded the retreat as timely and necessary.
“The retreat is very timely, and I believe NSITF will be better for it in the end. When legislators, the executive, and MDAs have a clear understanding of what to do, it will lead to a more successful NSITF,” he said.
A member of the Senate Committee on Employment, Labour, and Productivity, Victor Umeh, urged the agency to invest the funds generated from the one per cent workers’ contribution in projects that would benefit Nigerian workers, such as affordable housing.
“Investing in housing will not only reduce the housing deficit but also make the scheme more attractive to workers,” Umeh suggested. He also emphasised the importance of timely compensation payments to injured workers, which would enhance the scheme’s credibility.
Also, a member of the House of Representatives, Ifeanyi Uzokwe, voiced concerns over the federal government’s deduction of 40% from the NSITF’s funds, noting that this practice is hampering the agency’s operations.
“The government’s deduction of 40% from the agency’s fund is affecting the scheme’s effectiveness. We need to address this issue to ensure the NSITF can operate at full capacity,” Uzokwe lamented. He called for a review of this policy to allow the NSITF to retain more of its funds for operational use.
Chairman of the Senate Committee on Establishment and Public Service, Senator Oluwaseyi Faseyi, highlighted the hazardous working conditions in many Nigerian companies and the need for more private companies to be brought under the NSITF’s scheme.
“The conditions of work in many Nigerian companies are severe and often hazardous. It is crucial that we bring more private companies into the scheme so their workers can benefit from the protection it offers,” Faseyi said. He stressed that this would not only protect workers but also improve overall workplace safety standards in the country.
Chairman of the House Committee on Labour, Employment, and Productivity, Adefarati Adegboyega, called for a stronger and more efficient NSITF.
He urged the Managing Director to fast-track the full automation of the agency’s processes to improve service delivery.
“We have assured him of our maximum support, and anywhere we need to amend any section of the Act, we are ready to do that,” Adegboyega said.
He said that digitalization would enhance transparency and accountability, ultimately leading to a more robust and effective NSITF.
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