The Federal Government of Nigeria has approved the second phase of the electronic Nigeria Social Insurance Trust Fund (e-NSITF), which will allow concessionaires to upgrade the infrastructure for N15 billion.
Speaking to journalists at the end of the Federal Executive Council (FEC) meeting, presided over by Vice-President Yemi Osinbajo, Chris Ngige, the Minister of Labour and Employment, explained that Nigeria operates under the Employee Compensation Act (ECA) of 2010, which mandates employers to make a minimum contribution of 1% of the total monthly payroll into the employees’ compensation fund.
“Therefore, what we are trying to do is to align the contributions of NSITF to make it fraud-free. People should be able to make the contributions of workers with ease even from the comfort of their office and generate certificates,” he said.
“You know that the ECA makes it mandatory for all employers to insure through a token contribution of percent (sic) of emolument of their workers to the fund called social trust fund of the NSITF.
“And that is the fund with which, if you have an accident or disease condition or debt or disability in the course of work, you can make a claim, like an insurance claim.
“So, we now want to refine it, because there are cases of enforcement officers going to companies to tell the company ‘well, you have 1000 workers, but you can pay for only 100’. That is shortcutting the organisation. There are losses of revenue from that.”
Ngige further explained that the government wants to align the contributions of NSITF to make it fraud-free and ensure that employers can make the contributions of workers with ease even from the comfort of their office and generate certificates.
The FEC had earlier approved phase one of the e-NSITF, which was minimal infrastructure and cloud activity.
The second phase will involve a concessionaire to do infrastructure and upgrade in the neighbourhood of N15 billion, after which the concessionaire will take some percentage on incremental revenue that accrued.
“So, the council gave the go-ahead today and approved it and directed ICRC, which is the body that is authorised by law to enter into such concession to continue the process and liaise with the office of the attorney-general of the federation.”
In addition, the council approved the amendment of obsolete laws of the country in line with the International Labour Organisation (ILO) standard. Ngige stated that the labour laws of the country are really obsolete laws and that the ILO has pointed out that Nigeria needs to bring its laws to be concurrent with international labour standards, conventions and principles at work.
“The labour laws of the country, as presently being operated, are really obsolete laws. And the ILO has pointed out that we need to bring our laws to be concurrent with international labour standards and conventions and principles at work,” he said.
