By Nwachukwu Godson
The compulsory Employee’s Compensation for all the Ministries, Departments and Agencies (MDAs), as well as its implementation in the states received a big boost Tuesday, August 22, 2023 when the Secretary to the Government of the Federation, Senator George Akume assured that the Federal Government was taking necessary steps to see to its realization.
Senator Akume who spoke to the executive and the management of the Nigeria Social Insurance Trust Fund (NSITF) on a courtesy visit to his office, assured that the fund will be assisted to realize its goals and objectives in view of the enormous roles it plays in the life of the Nigerian workers.
Recall that the Extraordinary Session of Federal Executive Council of President Muhammadu Buhari had on May 15, 2023 gave approval for one per cent mandatory deductions from the source of the emoluments of the MDAs as Employee’s Compensation contributions, with retroactive effect from January 2023.
The FEC approval also directed the Ministry of Finance to ensure that the backlog of payment owed by different agencies since 2012 are paid to the fund while directing the Attorney General of the Federation to liaise with counterparts in the states to widen the implementation of the compensation scheme to all tiers of government.
The visiting team from the NSITF led by its Managing Director, Maureen Allagoa, a lawyer, had tabled what she called “stifling challenges” facing the organization while intimating the SGF of its history, trajectory, as well as achievements since the Employee’s Compensation was born through the Act of the National Assembly in 2010. But the former governor of Benue State and four-time senator is not new to some of the issues raised as he enthused: “I have a fair knowledge of what you do because my friend and colleague at that time (last administration) the former Minister of Labour used to talk to me about the fund and its challenges. It was on the basis of his presentation that the decision to deduct one per cent from the MDAs was taken,” noting that “this is a matter for implementation and I have already minuted to the Permanent Secretary, Cabinet Affairs Office to attach some of these conclusions to enable me take action.”
He elucidated more on the agency: “This organisation (NSITF) has a lot to offer, too much to offer to the Nigerian workers in both private and public sectors of the economy. The injuries suffered by workers in the private sector and in the public sector are such that if you don’t come to their aide, they might be crippled for life.
“It is, therefore, a matter for concern that this (one per cent deductions from the MDAs) has not yet been implemented, but given the fact that this was only concluded in May 2023, you understand why we are yet to act on this. There were so many conclusions towards the end of the tenure of the last administration and I believe this was done in good faith, and so, we treat it on its own merit. I hence thank and assure that you will hear from us as soon as the cabinet affairs office concludes what I asked them to do.”
Allagoa who was accompanied during the visit by her team, including the Executive Director Administration, Prof. Gabriel Okenwa; Executive Director, Operations, Modu Gana; Executive Director, Finance, Adegoke Adedeji; General Manager, Social Security, Christian Uduaghan; General Manager Compliance, Kabir Maaji; General Manager, Finance, Zwalda Ponkap; and Assistant General Manager, Social Security, Ezi Okpa-Obaji said, “the NSITF since 2010 has registered 140, 000 employers which translates to over 7.4 million employees, majorly from the organised private sector. We are also currently making inroads into the informal sector but seriously handicapped in the public sector despite the FEC approval of May 15, 2023, authorizing the implementation of Employee’s Compensation for all public servants through a compulsory one per cent deduction from the source of emoluments of the MDAs. We are yet to achieve the implementation of this approval that is key to the fundamental repositioning of the Fund.”
But Kabir Maaji who is the General Manager of the NSITF’s Compliance Department and the fulcrum around which the expansion and the enforcement of the scheme revolves, revealed to Senator Akume that over 80 per cent of the enrollees are currently from the private sector while workers in the public sector are largely deprived of the huge benefits of the fund’s compensation scheme.
“Each time we approach the ministries for enrolment, the response is always that such contributions are not budgeted for, hence difficult to implement. But the implementation of compulsory deduction from the source as approved by the last FEC will rest the ghost of that position. The workers in the public sector also need to partake from the huge benefits of the compensation scheme,” he said, adding that the Federal Government contributions currently stand at N4 billion out of which only N2 billion was paid in 2022, while noting that only one state out of the 36 states of the federation is enrolled with a backlog of close to N100 million.
However, what is obvious is that despite the bad optics arising from sheer distortion of some domestic issues in the Fund, its management does not rest on its oars.
Between 2011 and July 2023, the NSITF has paid 8,959 claims and compensations under various contingencies of death, medical expenses, disability and retirement benefits, as well as further treatment among others like protheses which have been given to hundreds of injured workers.
“We currently have a worker who died in the course of work and whose family is being paid N1,350,000 monthly, which is 90 per cent of the deceased salary. The payment will continue till 2038 when the his last son will be 21 years old in line with our establishing act.”
How has the fund tackled some of the domestic union agitations relating to staff welfare? Allagoa said, “we also didn’t lose sight of the welfare of our staff. We have reviewed the condition of service last done in 2004 as well as reviewed the salary structure to improve the lots and boost the morale of the workforce. Operational buses were also procured and sent to the regions and branches. We equally successfully conducted a computer-based promotion examination last year and just rounded off another last month. The digitization of our processes to enthrone transparency and accountability as well as ease the operation of these processes for customers and staff members is ongoing too,” the managing director averred.
