The Nigeria Social Insurance Trust Fund has urged employers in the country to secure the future of their workers through the Employees’ Compensation Scheme, rather than focusing only on salary payments.
Managing Director of the Fund, Oluwaseun Faleye, gave the charge in Abuja while receiving the leadership of the Oil Producers Trade Sector of the Lagos Chamber of Commerce during a courtesy visit to his office.
Faleye emphasised that workers’ welfare and long-term security often outweigh demands for wage increases, urging employers to adopt policies that reflect genuine concern for their employees’ future.
He said: “You need to highlight your efforts at meeting their welfare demands through compensation schemes, health benefits and others, and tie this to outputs. Workers’ demands are not always tied to salary and wage increases. The need to assure their future often takes priority.”
He further advised that employers must ensure subcontractors, suppliers, and other third parties in business relationships with them comply with the law by enrolling their workers in the scheme to avoid vicarious liabilities.
Earlier, the leader of the OPTS delegation, Steve Ojeh, commended Faleye’s leadership qualities and expressed optimism about areas of partnership between the two organisations.
He, however, raised concerns over the planned increase in contributions to the ECS beyond the current one percent rate, as well as the proposal to extend its scope beyond basic salary, housing and transport allowance.
Established under the Employees Compensation Act of 2010, the ECS provides compensation for workers who suffer work-related injuries, diseases, disabilities or death at no cost to the employee. Employers are required to contribute one percent of their workers’ gross salaries to the scheme.
Reiterating NSITF’s commitment to workers’ welfare, Faleye pledged sustained advocacy to deepen the culture of health, safety and environmental consciousness in Nigerian workplaces, saying it was the only way to guarantee the future security of employees.
Finance Act Ambiguity endangers workers’ safety net
Meanwhile, the Chairman of the Management Board of the NSITF, Sola Olofin, has raised concern over what he described as the threat of regulatory overreach on the Fund’s independence, warning that the ambiguity in the Finance Act 2021 could jeopardize workers’ social safety net.
