The House Committee on Labour, Employment, and Productivity, in collaboration with its Senate counterpart, has recommended the removal of the Nigeria Social Insurance Trust Fund (NSITF) from Schedule 1 of the Fiscal Responsibility Act (FRA) 2007. The advocacy aims to enhance NSITF’s capacity to provide social safety nets for workers across both public and private sectors.
This development emerged from a two-day retreat in Lagos, organized by the NSITF for members of the House and Senate Committees on Labour, Employment, and Productivity. The retreat was designed to familiarize committee members with the operations of the NSITF.
According to a statement issued by the Spokesman of the House of Representatives, Hon. Akin Rotimi, the committees urged NSITF management to intensify efforts to enroll all public sector employees in the Employee Compensation Scheme (ECS), emphasizing the scheme’s social benefits and its positive impact on economic productivity. They also called for engagement with relevant agencies to ensure timely collection and remittance of ECS deductions for both Treasury-funded and non-Treasury-funded agencies.
The lawmakers highlighted that NSITF is not a revenue-generating agency, and delisting it from Schedule 1 of the Fiscal Responsibility Act would exempt the NSITF from the mandatory 50% revenue deduction by the Federal Ministry of Finance. This change would allow the fund to fully utilize its resources for its intended beneficiaries.
Also read National Assembly Calls for Reform in NSITF Operations and Employee Compensation Deductions
Nwachukwu Godson, the General Manager of NSITF, noted the importance of digital transformation within the organization to improve service delivery and transparency. The committees supported this initiative, urging the NSITF to implement an electronic record system and embark on extensive advocacy to increase public understanding of the NSITF’s mandate and the benefits of subscribing to the scheme.
Hon. Adegboyega Adefarati, Chairman of the House Committee on Labour, Employment, and Productivity, commended the new NSITF Managing Director, Oluwaseun Faleye, praising his “NSITF Strategic Priorities 2024-2027” roadmap and his leadership capabilities. Senator Diket Plang also expressed satisfaction with the retreat’s discussions and pledged legislative support for NSITF’s success.
