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…Extends scheme to informal sector
By Bimbola Oyesola
The Nigeria Social Insurance Trust Fund (NSITF) has further boosted the confidence of Nigerian workers in the Employee Compensation Scheme (ECS) with the payment of N679.57 million in claims within the first half of 2024.
This was confirmed by the Fund’s General Manager of Corporate Affairs, Nwachukwu Godson, who outlined the payment breakdown across various compensation categories.
According to Godson, “NSITF has paid the sum of N679,577,908 for different categories of claims which include claims for injuries, compensation for disability and dependent benefits, occupational diseases, provision of prosthesis, retirement benefits and additional medical treatment.”
He further disclosed that the claims for the July-December 2024 period are currently being processed and are expected to be released by year-end.
Alongside these payments, NSITF has initiated efforts to expand ECS coverage to the informal sector, particularly within the agency banking and mobile money sectors across Nigeria. Speaking at a recent Stakeholders’ Sensitisation Session in Lagos, NSITF’s General Manager, Informal Sector, Chika Onyewuchi, explained the Fund’s objective to raise awareness among informal sector operators, such as agency banking and mobile money operators, about the importance of the ECS.
“This program has been set up to create awareness and engage agency banking operators, the peers operators, [and the] association of mobile banking operators, so we can extend the safety net to the informal sector,” she stated.
The ECS, established under the Employee Compensation Act (ECA) 2010, provides compensation to employees who suffer injuries, illnesses, or death in the course of their duties.
“It’s social protection,” she said, urging more employees to key into the initiative. This is even as she emphasized that the ECS contributes to enhanced workplace productivity,
Onyewuchi further explained, “It is a contributory scheme, but the contribution is made by the employer on behalf of the employee. The employer is mandated by law to make the contribution. And it is one percent of total remuneration.”
Earlier in his address, the Chairman, Senate Committee on Banking, Insurance, and Other Financial Institutions, Senator Adetokunbo Abiru, lauded the move by the NSITF to extend protection to employees of various industries.
Represented by a Professor of Capital Market, Uche Uwaleke, the senator said the theme of the event: “Enhancing Agency Banking and Mobile Money Operators through Employees’ Compensation Scheme,” was timely as it was essential to deepen the social protection coverage within Nigeria’s dynamic digital finance sector.
He said, “Today’s session is particularly significant, as it seeks to focus on ensuring that Agency Banking Operators in the employ of various fintech companies are covered under the Employees Compensation Scheme by their respective employers. This step underscores the growing importance of employee welfare in the digital economy and sends a strong signal about the shared responsibility we must all uphold to protect workers’ rights and dignity.”
