The Nigerian Social Insurance Trust Fund (NSITF) is set to expand its insurance coverage to include National Youth Service Corps (NYSC) members and boost its corporate registration efforts, according to Managing Director Oluwaseun Faleye. Speaking at the agency’s retreat for the Senate and House Committees on Labour and Employment in Lagos, Faleye outlined ambitious plans to enhance the Fund’s impact.
Faleye revealed that the NSITF is seeking a Federal Government directive to ministries, departments, and agencies (MDAs) for strict adherence to the Federal Executive Council’s approval mandating a 1 percent Employees’ Compensation Scheme (ECS) deduction from MDA budgets. The goal is to significantly increase corporate registrations, targeting one million new registrations annually.
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In addition to these efforts, Faleye announced a proposal to include NYSC members in the insurance coverage, addressing a gap in the current legislative framework. He emphasized that the NSITF should be recognized as a trustee rather than a revenue-generating agency, focused on managing funds to protect Nigerian workers.
As of July 2023, the NSITF has processed and paid out 103,292 claims. The agency plans to enhance collections by collaborating with key institutions such as the Central Bank of Nigeria, the Corporate Affairs Commission, and others. The goal is to increase registered employers from 167,000 to one million annually, covering approximately 7.5 million employees.
General Manager of Compliance, Kabiru Maaji, highlighted the projected N180 billion increase in collections through these collaborations. He stressed the need for greater government involvement, noting that only 15 percent of contributions currently come from the government.
Senator Victor Umeh and other lawmakers expressed support for the NSITF’s initiatives. House Representative Peter Uzokwe urged lawful execution of NSITF activities, while House Committee Chairman Adefarati Adegboyega encouraged Faleye to expedite the full automation of NSITF processes. Adegboyega also assured support for any necessary amendments to the Act to strengthen the agency.
The retreat underscored a collective commitment to improving the NSITF’s operations and expanding its coverage to better serve Nigerian workers.
