…Oluwaseun Faleye Highlights ECS as a Tool for Bridging Inequality
The Managing Director of the Nigeria Social Insurance Trust Fund (NSITF), Oluwaseun Faleye, has called on stakeholders in Nigeria’s informal sector to embrace the Employees’ Compensation Scheme (ECS) as a critical tool for reducing inequality and enhancing social protection.
Speaking during a sensitization workshop for agency banking and fintech stakeholders, Faleye, represented by Chika Onyewuchi, General Manager of the Informal Sector Department, stressed the scheme’s role in protecting workers and advancing financial inclusion.
Faleye explained that the ECS enables employers to transfer workplace risks to the NSITF, which handles compensation claims and payouts. This setup shields businesses from potential legal battles while ensuring that employees are compensated for workplace-related injuries or illnesses. Such a system is particularly beneficial in sectors like fintech and agency banking, where workers often operate in high-risk environments or commute frequently to underserved areas.
By safeguarding agents from risks associated with their work, the ECS creates a more secure environment that can attract skilled professionals.
This assurance allows employers to draw a stable workforce, essential for the continued growth of Nigeria’s financial sector. Onyewuchi noted that workers in agency banking and fintech are crucial to advancing financial inclusion, as their roles help expand banking services to remote and underserved regions.
The workshop also brought together key stakeholders, including leaders from the Nigeria Labour Congress (NLC), National Union of Banks, Insurance and Financial Institutions Employees (NUBIFIE), and representatives of leading banks and fintech firms such as Zenith Bank, Fidelity, GTB, and Moniepoint.
Discussions highlighted the ECS’s potential to narrow the gap between the formal and informal sectors by mitigating financial vulnerability and ensuring social security for workers.
However, stakeholders raised concerns over delays, bureaucratic hurdles, and inadequate communication in processing ECS benefits. Anthony Abakpa, President of NUBIFIE, pointed out that the effectiveness of the scheme lies in its ability to disburse benefits promptly and efficiently. He acknowledged recent efforts by the NSITF’s new management to address these challenges, which have historically caused dissatisfaction among beneficiaries.
Despite these challenges, the scheme remains a cornerstone of the NSITF’s mission to protect workers and foster financial inclusion. Stakeholders expressed optimism that with ongoing improvements, the ECS will continue to play a vital role in securing the livelihoods of workers across Nigeria.