Nigeria Social Insurance Trust Fund says some employers are sabotaging its operations by under-declaring the salaries and staff strength of their organisations. The managing director of NSITF, Oluwaseun Faleye, disclosed this in an interview on Sunday in Abuja. “We have seen cases where organisations report lower salaries or fewer employees just to reduce their contributions. We are addressing this through advocacy and education because under-declaring salaries ultimately harms workers. Benefits are calculated based on reported earnings. So, if an employer declares ₦100,000 instead of ₦200,000, compensation will also be based on the lower figure. That shortchanges the employee, sometimes significantly. We have also noticed cases where companies fail to update their staff registers after employee turnover,” he said. Mr Faleye also identified low awareness of NSITF operations as another major challenge of the fund. He said many people are still unaware of the Employees’ Compensation Scheme and its benefits.
“Each time I speak to new groups about the scheme, they are often surprised by what they have been missing,’’ he said. The ECS is governed by the Employees’ Compensation Act 2010, which establishes a mandatory social insurance program for most employees in the public and private sectors. The act mandates employers to register with the NSITF and contribute to an Employee Compensation Fund, which provides compensation for work-related deaths, injuries, diseases, or disabilities.
The scheme aims to provide adequate compensation, vocational rehabilitation, and a social safety net for employees and their dependents. Mr Faleye said another of the biggest internal challenges facing the organisation was the manual processes that still existed within the system. He said the manual operation processes were slowing the Fund down and making it less agile. “We are addressing this by digitalising our operations, from online registration portals in the compliance department, to digital workflows in our legal and claims departments. Once completed, this transformation will make us far more responsive and efficient,” he said.
Speaking on the ongoing amendment to the NSITF Establishment Act, Mr Faleye said, they looked forward to engaging constructively with the National Assembly to ensure that whatever emerged from the process ultimately benefits Nigerian workers. The amendment is being championed by the Senate Committee on Labour and Employment, chaired by Diket Plang, and has passed second reading in the Senate. The amendment reportedly seeks to reduce the representation and influence of employers and workers, who are the main contributors to the Fund, on the NSITF’s governance board. Critical stakeholders, including the Nigeria Labour Congress, had faulted the ongoing amendment, contending that it would increase government control over the NSITF via a board dominated by political appointees rather than tripartite stakeholder representation. The stakeholders warned that the amendment could weaken transparency, accountability, and good governance mechanisms for NSITF.
Meanwhile, the NSITF boss has said that he would want to leave behind “an organisation that is responsive, professional, and efficient; one that takes full ownership of its responsibilities”. Mr Faleye added that a capable and motivated workforce will naturally reflect and strengthen the quality of service delivery to Nigerian workers. NAN
Employers accused of sabotaging NSITF operations
