NSITF records N6.6bn beneficiaries’ compensation disbursement
The Nigeria social insurance trust fund (NSITF) has unveiled its data analysis, revealing a total enrollee figure of over 172,000 Employers and 7.6 million Employees; compensation of over 103,000 beneficiaries with a total disbursement of N6.6 billion as compensation to the affected employees.
This was made known by the Executive Director for Operations, Hon. Mrs. Mojisola Ali-macaulay at the NSITF special “compliance day” at the lagos international trade fair.
During her keynote address, the ED examined the importance of the Lagos International Trade Fair as a community, where every economic player can learn and showcase the innovative spirit that drives the industry forward.
The ED enumerated that Nigeria Social Insurance Trust Fund (NSITF) was established by the Federal Government to provide Social Security and Insurance cover for Nigerian workforce and the vulnerables.
‘‘The Fund which has a vision to be the leading Social Security institution in Africa currently,” she said, “provides compensation for employees who suffer injury/disabilities /occupational diseases or death in the course of work as established by the Employees’ Compensation Act – ECA 2010.”
“This Act is not only a legal requirement but also a strategic asset that can enhance your organisation’s growth, productivity, and reputation and We have been delivering on this service since 2011.
The Act empowers NSITF to implement the Employees’ Compensation Scheme. This scheme is geared towards protecting the employees against accident, injury, diseases or death.’
Hon. Mojisola explained that out of or in the course of work. The employer contributes 1 percent of the employee’s total emolument into the pool of funds. It is in line with this year’s theme “COMPLIANCE” that informed NSITF presence in the fair to partner with business owners in creating awareness for the welfare of their Employees.
Furthermore, Hon. Mojisola submitted that Compliance with this Act is not only mandatory but essential for safeguarding the welfare of employees, serving as Legal and Financial protection for Employers and boosting Employee morale and productivity.
“The key benefits of Compliance to the ECA are disability benefit to disabled Employee, medical treatment for injured Employee, death benefit to deceased Employee’s beneficiaries, rehabilitation of disabled Employee, provision of prosthesis, payment for loss of productive time to Employers, encouragement of Employers to implement and maintain high standard of occupational safety and health, fostering a stronger relationship between employer and its employees.
“In our renewed sensitisation drive, we have raised the total enrollee figure to over 172,000 Employers and 7.6 million Employees. We have also compensated over 103,000 beneficiaries disbursing a total of N6.6 billion as compensation to the affected employees.
“It is important to note that among the recent beneficiaries of the Scheme, 111 persons have been assisted with artificial limbs and 11 others sent abroad for further medical treatment. Our performance has also won us the 2023 edition of the Nigeria Employers’ Consultative Association’s (NECA) Award in Best Service Delivery Category.”
Presently, she disclosed that the Trust fund has established 14 regions across the nation to ensure easy accessibility by all employers. ‘We have two (2) Regions and fourteen (14) Branch offices across Lagos State. We have also invested and upgraded our IT platforms, public awareness opportunities such as this to spread the message.’ she stated
The ED also added that NSITF is committed to effective delivery of social insurance services such as prevention of accident, rehabilitation and compensatory services. She urged Nigerians to reach out to the Trust fund for any clarification or support needed.
However, the President/Chairman of Council, Lagos Chamber for Commerce and Industry, Mr Gabriel Idahosa, FCA emphasised the theme of the 2024 Lagos International Trade fair, stating that the theme ‘Connecting Businesses, Creating Value’ is generic and it underscores the importance of business relationships and networking for wealth creation and trade partnerships.
“The future of work is expected to deviate vastly from what we have today; the difference will lie mainly in the health and safety profile. While employers grapple with this, institutions like NSITF must be the regulators or enablers to work with companies toward a safer workplace. We urge the management of the Fund to deploy more technology in its operations and engage with employers toward more efficient and easier compliance with social insurance provisions.
“The NSITF can work with insurers in helping organisations protect against and manage health and safety risks by providing advice and guidance on assessing and managing risks. More enlightenment is required to create awareness amongst the citizenry and educate them on the work of NSITF and how they can benefit from the Fund,” He explained.
The president further noted that the social security sector in Nigeria has evolved considerably over recent decades. While there are commendable strides, challenges remain. One of the primary indicators of social security performance in Nigeria is coverage. Recent reports show that only about 20% of the Nigerian workforce has any form of social security coverage, which highlights a significant gap when compared to global standards.
“Social security coverage in countries with similar emerging markets often extends to 40–50 percent of the workforce. This disparity can be attributed to various factors, including the high rate of informal employment, limited public awareness, and the lack of an integrated approach to enforce and expand social security benefits.”
Thus, the President expressed that NSITF is foundational in connecting businesses and creating value in Nigeria’s economy. He commended the Trust fund body for her contributions to the Nigerian economy and encouraged continued dedication to bridging social security gaps, fostering workplace safety, and strengthening the country’s social protection framework.
Meanwhile, the Principal Manager, NSITF, Mrs Chinelo Uzu in her enlightenment lecture, explained the Employee’s compensation scheme and the statistics so far that led the Trust Fund body to the ECS stage. Before they dealt with pensions for employees but now they deal with ECS.
Noting the transitioning period from a pension based company in 2004 to 2010 when the NSITF were transitioning into their new roles to Compensate workers with earlier mentioned conditions. Mrs Chinelo expressed that the one percent Contribution is by the employer from the gross payroll. She disclosed that employers are to report an accident within 21 days, NSITF in return visits the employee to establish if the accident occurred and if it was in the cause of carrying out official duties.
She reiterated the Management’s commitment to stakeholders engagement and strategic priorities.
