The Nigeria Social Insurance Trust Fund (NSITF) Monday said a new campaign is on the way to attract at least 1million annual subscribers as beneficiaries in the Employee Compensation Scheme (ECS).
The organisation said it is expedient due to the fact that most Nigerians as well as corporate organisations are unaware of the operations.
The managing director of NSITF, Oluwaseun Faleye, stated that it is targeting informal sector workers who make up 70% of Nigeria’s workforce, under the ECS’s social security protection.
He frowned at a situation where some workers collude with their employers to manipulate the system, adding that they lower salaries or staff strength, in a bid to shortchange the fund.
Faleye said such practices was counterproductive on the long run, noting that in the event of accidents or death, compensation paid by NSITF under the ECS is based strictly on the declared earnings of an employee.
Speaking during a media parley, the NSITF boss while launching its Mass advocacy and sensitisation campaign in Abuja, read a riot act.
“Every time we’ve had the opportunity to explain what NSITF stands for and what it does, we’ve seen a swift change in perception and attitude. So, I believe the greatest challenge is the lack of understanding and awareness about NSITF’s role. This is why we are committed to deepening engagement with stakeholders,” he said.
He stated further that enforcing compliance remains a major hurdle, as some employers obstruct NSITF officials during inspections of workplaces, preventing them from assessing health and safety compliance or reviewing records.
“We face challenges when our staff go on inspections. They are sometimes prevented from accessing workplaces to check compliance with safety regulations or even verify records.
“We need stronger enforcement powers to ensure organisations comply with the law, including the ability to enter or shut down premises that endanger employees’ lives,” he said.
He stated that beyond enforcement, workers themselves must stop enabling their own exploitation.
“Another major issue is that employees sometimes collude with employers to underreport salaries or reduce the declared number of staff, thinking they are doing their bosses a favour. In reality, they are only shortchanging themselves.
“We have seen cases where employees advise their employers to reduce their declared earnings to lower contributions to NSITF. But when accidents happen, and we pray they don’t, compensation is calculated based on the reported salary.
“So, if you undervalue your earnings, the NSITF will only compensate you based on what was declared, meaning you receive far less than you should. Employees, especially accountants, finance directors, and payroll officers, should desist from these practices because they will ultimately be the ones to suffer,” he warned.