NSITF Boss decries low compliance with employee compensation scheme by State Governments

The Managing Director of the Nigeria Social Insurance Trust Fund (NSITF), Barrister Oluwaseun Faleye, has raised concerns over the poor level of compliance by state governments regarding the enrollment of their workers into the Employee Compensation Scheme (ECS).

Speaking during a visit to the President of the Nigerian Labour Congress (NLC), Comrade Joe Ajaero, at the union’s headquarters in Abuja on Tuesday, Faleye described the situation as a major risk to the welfare of Nigerian workers.

He lamented that workers remain vulnerable when critical protection measures provided by law are left unused for various reasons.

The NSITF boss clarified that the Fund is not a revenue-generating agency but exists to promote workers’ welfare and ensure safety through compensation and rehabilitation for work-related injuries, diseases, or deaths, alongside promoting health and safety in workplaces.

According to him, the Fund’s investments are primarily for operational sustainability rather than profit-making.

Faleye used the visit to seek a stronger partnership with the NLC, leveraging its influence to enhance enrollment in the compensation scheme.

He reminded the labour leadership of their role as a key stakeholder, with representation on the Fund’s Management Board, and appealed for collaboration in protecting the shared interest of workers’ welfare.

The visit forms part of the NSITF’s ongoing efforts to broaden ECS compliance through stakeholder engagement, sensitisation, and inter-agency cooperation.

The Employee Compensation Act mandates both public and private employers to contribute 1% of their workers’ salaries to the Fund, which is tasked with providing compensation, indemnity, and rehabilitation for work-related mishaps.

In his response, NLC President Joe Ajaero welcomed the initiative and promised the support of organised labour in ensuring states comply with the ECS.

He praised the scheme as a commendable effort geared toward improving the welfare of the working class and expressed satisfaction that the NSITF remains committed to managing social security in the country.

Ajaero further pledged the labour union’s active involvement in campaigns to raise awareness and improve enrollment into the scheme nationwide.