The Nigeria Social Insurance Trust Fund (NSITF) 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 with the News Agency of Nigeria (NAN) on Sunday in Abuja.
He said the Fund had seen organisations reporting lower salaries or fewer employees 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.
The managing director said there were also cases where companies failed to update their staff registers after employee turnover.
Mr Faleye also identified low awareness of NSITF operations as another major challenge of the Fund.
About Employees’ Compensation Scheme(ECS)
The managing director said many people are still unaware of the Employees’ Compensation Scheme (ECS) 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 (ECA) 2010, which establishes a mandatory social insurance programme for most public and private sector employees.
The Act mandates employers to register with the NSITF and contribute to an Employee Compensation Fund to provide compensation for work-related death, injury, disease, or disability.
The scheme aims to provide adequate compensation, vocational rehabilitation, and a social safety net for employees and their dependents.
Manual processing slowing down the Fund
Mr Faleye said another biggest internal challenge facing the organisation was the manual processes that still existed within the system.
He said the manual operation process was 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.
NSITF Establishment Act
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
“For us, what matters is that the amendment provides greater enforcement powers, ensuring employers treat compliance as mandatory, not optional.
“It should also strengthen our governance framework for better operational efficiency,” he said.
The Senate Committee is championing the amendment 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.
Stakeholders kick against amendment
Meanwhile, 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 the Fund.
NSITF unveils Claims Tracking Portal to enhance transparency, efficiency
Meanwhile, according to the managing director, the Fund has developed a new claims tracking portal to enable claimants to monitor the progress of their compensation claims in real time.
Mr Faleye said the initiative was part of a broader digital transformation programme aimed at improving efficiency, transparency, and user experience across the Fund’s operations.
According to him, the portal will give claimants greater visibility, peace of mind, and confidence that their cases are being handled promptly.
He added that the NSITF had also established a customer service hub with multiple engagement channels, including text messages, online chats, and real-time calls, which will help to strengthen feedback and enhance user satisfaction.
He said when he came on board, the claims process involved about 11 different steps and paperwork before payment could be made,” Mr Faleye said.
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According to him, that has now been streamlined to just about three steps, saying the Fund will continue reviewing it to identify what can be further simplified or eliminated.
He explained that the ongoing reforms are designed to make the claims process faster and more user-friendly while ensuring timely support and compensation for affected workers.
NSITF’s core mandate
Mr Faleye reaffirmed that the Fund’s core mandate remains the payment of compensation, rehabilitation, and reintegration of workers injured during their duties under the Employees’ Compensation Scheme (ECS).
He noted that beneficiaries are entitled to compensation and rehabilitation services such as prosthetics, physiotherapy, and vocational training to support reintegration, especially for those unable to return to their original line of work.
Mr Faleye added that the NSITF also promotes occupational health and safety in workplaces in line with the International Labour Organisation’s (ILO) Convention on Social Protection and Safe Working Environments.
My legacy
Meanwhile, the NSITF boss has said he would want to leave behind “an organisation that is responsive, professional, and efficient; one that takes full ownership of its responsibilities”.
“My legacy, ultimately, will be to build a resilient, professional workforce that can deliver on our mandate of expanded coverage and effective service delivery,” he said
Mr Faleye added that a capable and motivated workforce will naturally reflect and strengthen the quality of service delivery to Nigerian workers.
