…Faleye Calls for Transparency, Stronger Enforcement in Employee Compensation
The Nigeria Social Insurance Trust Fund (NSITF) has launched a Mass Advocacy and Sensitisation Campaign to enhance awareness and compliance with the Employees’ Compensation Scheme (ECS).
Managing Director of NSITF, Oluwaseun Faleye, unveiled the initiative in Abuja during a media parley with the Labour Correspondents Association of Nigeria (LACAN), stressing the importance of transparency and adherence to the scheme’s provisions.
Faleye Warns Against Underreporting Salaries
Faleye cautioned workers against colluding with employers to manipulate declared salaries or staff numbers, warning that such practices ultimately deprive them of fair compensation in the event of workplace incidents.
“Compensation paid by NSITF under the ECS is strictly based on the declared earnings of an employee,” he said. “We have seen cases where employees advise their employers to reduce their declared earnings to lower contributions to NSITF. But when accidents happen—and we pray they don’t—compensation is calculated based on the reported salary. If you undervalue your earnings, you receive far less than you should.”
Challenges in Enforcement and Workplace Inspections
Faleye highlighted enforcement as a major hurdle, noting that some employers obstruct NSITF officials during workplace inspections, making it difficult to assess health and safety compliance.
“We face challenges when our staff go on inspections. They are sometimes prevented from accessing workplaces to check compliance with safety regulations or even verify records,” he stated.
To address this, he called for stronger enforcement powers, including the ability to enter or shut down non-compliant workplaces that endanger employees’ lives.
With 70% of Nigeria’s economy operating in the informal sector, Faleye announced NSITF’s plans to extend ECS coverage to small businesses, artisans, traders, and transport workers.
“We are developing a social safety net within the ECS that caters to Nigeria’s dynamic and diverse economy. Soon, we will roll out initiatives specifically for small and medium businesses, road transport workers, and other informal sector participants,” he added.
Faleye also emphasized NSITF’s drive towards digital transformation, despite past challenges in implementing technological reforms.
“NSITF has made several attempts at digitalisation in the past, but unfortunately, we still have enormous challenges,” he admitted. However, he assured that efforts are underway to enhance efficiency, service delivery, and accessibility for millions of Nigerian workers.
The NSITF boss also urged journalists to demand coverage under the ECS, citing the high-risk nature of journalism and the need for social protection for media professionals.
Since assuming office in July 2024, Faleye disclosed that NSITF has paid over 100 claims, including a recent N25 million compensation to a National Assembly staff member.
“This campaign will leverage media engagement, stakeholder partnerships, and grassroots outreach to ensure that every worker, employer, and relevant stakeholder understands their rights and obligations under the scheme,” he said.