NSITF considers legal options to force compliance on employee compensation

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Nigeria Social Insurance Trust Fund (NSITF) is considering legal options to compel employers of labour to comply with the provisions of Employees Compensation Act (ECA).

The enabling Act as amended (2011) makes it mandatory for employers of labour to pay 1 per cent of their employees’ emoluments to a pool of insurance fund which is being managed by NSITF.

“We have used the persuasion and subtle approach to enlist the buy-in of employers since the inception of the fund in 2011,” Segun Basorun, a general manager with NSITF, said in Lagos when the management gave details on developments within the Fund.

“But going forward, we’re going to invoke the provisions against employers who have remained recalcitrant and refused to register with ECA scheme,” Basorum added.

The fund acts as a buffer against injuries, loss of body parts, permanent disability or death of an employee resulting from accidents on line of duty. It is indeed a form of social insurance that provides a succour directly to an employee or his/her dependants in the event of untoward occurrences in the course of duty.

While official statistics shows increasing accidents at work places with compelling need for compensation of victims, the rate of compliance with the law by employers of labour has remained abysmally low; a development that the NSITF says cannot continue to fester.

According to Adebayo Somefunin, Managing Director/CEO of NSITF, in the last two years, over, 24,880 claims and compensation had been processed and paid to beneficiaries under different contingencies.

 “Within two years of our administration, NSITF has rehabilitated 42 persons, making the total of 54 since implementation of the scheme in 2011,” he said.

“This process entails providing prosthetic limbs for employees who lost a limb in accidents while at work and training such … Read More...