…As NSITF prioritises workplace accident prevention
Both chambers of the National Assembly have agreed to actively engage state governors and Local Government chairmen to ensure full participation and compliance with the Employees’ Compensation Scheme (ECS).
The lawmakers gave this assurance, even as the Nigeria Social Insurance Trust Fund (NSITF) said it would henceforth prioritise the prevention of workplace and work-related accidents.
These were parts of the key resolutions reached at the end of a two-day strategic retreat held in Lagos State for the Senate and House of Representatives Committees on Labour, Employment, and Productivity, organised by the NSITF.
In a communique, signed by the Chairman Senate Committee on Labour, Employment and Productivity, Senator Diket Satso Plang, his counterpart in the House of Representatives, Hon. Adegboyega Adefarati, the NSITF Board Chairman, Hon. Olushola Olofin, and the NSITF Managing Director/ Chief Executive, Barr. Oluwaseun Mayomi Faleye, the lawmakers also resolved to ensure that provisions for ECS contributions are adequately captured and funded in the annual budgets of all Ministries, Departments, and Agencies (MDAs).
This move, according to the communique, is to expand the Employees’ Compensation Scheme’s coverage across all tiers of government.
The lawmakers assured that the NSITF shall continue to receive unwavering support from both the National Assembly and the Federal Ministry of Labour and Employment to effectively discharge its mandate, strengthen its operational capacity, and achieve the objectives of the ECS.
The communique partly reads: “The Senators and members of the National Assembly shall actively engage their respective State Governors and Local Government Chairmen to ensure full participation and compliance with the Employees’ Compensation Scheme (ECS), thereby expanding the scheme’s coverage across all tiers of government.
“The Senators and members shall collaborate closely with colleagues in the Appropriation Committees to guarantee that provisions for ECS contributions are adequately captured and funded in the annual budgets of all Ministries, Departments, and Agencies (MDAs).
The Management of the Nigeria Social Insurance Trust Fund (NSITF) shall continue to receive unwavering support from both the National Assembly and the Federal Ministry of Labour and Employment to effectively discharge its mandate, strengthen its operational capacity, and achieve the objectives of the ECS.
“The NSITF shall intensify its efforts to broaden the scheme’s coverage by implementing aggressive sensitisation campaigns, forging strategic partnerships, and adopting innovative approaches to bring more employers and workers under the ECS umbrella.
“The Board and Management of NSITF shall align the Fund’s governance and operational frameworks with International Social Security Association (ISSA) guidelines on good governance, ensuring increased transparency, accountability, and sustained high performance across all areas of its operations.
“The Health, Safety, and Environment (HSE) officers of the NSITF shall receive focused training on digital reporting systems and compliance monitoring tools. This initiative will enhance workplace safety oversight, improve data-driven decision-making, and encourage a proactive approach to accident prevention.”
The gathering, however, mandated the NSITF Management to organise a stakeholders’ retreat on the bill pending before the National Assembly before the public hearing, adding that the resolutions were aimed at strengthening social security and enhancing labour productivity in the country.
The meeting commended the NSITF Management for its doggedness and observed that there has been a remarkable increase in the number of employers registered under the Employees’ Compensation Scheme (ECS) over the past year, reflecting growing awareness and compliance with the scheme’s provisions.
The communique further reads: “The number of claims processed and paid out within the reporting period has doubled compared to previous years, indicating improved efficiency in claims administration, but also highlighting an increase in workplace incidents that require attention.
“Despite significant progress at the federal level, the second and third tiers of government (state and local governments) are yet to fully embrace the ECS, resulting in a substantial coverage gap that must be urgently addressed.
“There is a pressing need to confront the challenges affecting Nigeria’s social security systems, particularly those hindering labour productivity. Strengthening institutional frameworks and promoting preventive measures are essential for enhancing the welfare of the workforce.
“Nigeria’s social security landscape requires strategic and comprehensive reforms aimed at expanding coverage to grassroots communities, improving the adequacy of benefits, and safeguarding the long-term sustainability of the nation’s social insurance programmes.
“Although some aspects of NSITF operations have undergone digital transformation, full-scale digitalisation across all operational areas is imperative. This will drive efficiency, transparency, and the achievement of the Employees’ Compensation Scheme’s objectives in line with its mission.
“It was observed that most Ministries, Departments, and Agencies (MDAs) do not make budgetary appropriations for ECS contributions during the fiscal planning process. This omission undermines compliance with the Employees’ Compensation Act and calls for strict enforcement and sensitisation measures.
“The National Assembly is currently making concerted efforts to strengthen the ECS through the proposed repeal of the existing NSITF and ECA Acts, replacing them with a new, more comprehensive legislation. This initiative, championed by a private member bill, was inspired by resolutions from last year’s retreat, signalling legislative commitment to improving the scheme.
“The Actuarial Valuation of the Fund and ECS, which is critical for determining the scheme’s financial health, contribution adequacy, and long-term sustainability, is long overdue. Immediate action is required to undertake this assessment and guide policy decisions.
“Every claim paid under the ECS represents a story of pain and loss suffered by a worker and their family. This underscores the urgent need to prioritise preventive strategies, workplace safety programs, and proactive risk management to minimise accidents and safeguard lives. That every claim paid is a story of pain. Prevention of accidents must therefore be a priority for the ECS.”
