The Nigeria Social Insurance Trust Fund (NSITF) has reiterated the growing importance of employee welfare to the growth of the digital economy, sending a strong signal about the shared responsibility of employers in protecting workers’ rights and dignity.
At a session on stakeholders’ sensitisation on the implementation of the Employees Compensation Scheme (ECS) in agency banking and the fintech industry, organised by the NSITF, the Fund said providing adequate social security was not only a social imperative but an economic one that guaranteed the productivity of workers and their contribution to achieving economic stability.
The Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Mukhail Abiru, said the work of the NSITF was far from complete as there is still much to be done, especially in the area of expanding the reach of the ECS, particularly in fintech, where the workforce is dynamic, and the nature of work is continuously evolving.
He said employee compensation schemes are vital not only for ensuring the well-being of workers but also for maintaining productivity in the face of occupational hazards.
According to him, workers who feel secure in their workplace, knowing that their rights and safety are guaranteed, are likely to be more productive and motivated.
The lawmaker, who was represented by a professor of capital market at the Nasarawa State University, Uche Uwaleke, said the increasing reliance on agency banking comes with the growing need to ensure the safety and security of the operators.
He stressed that agency banking operators face unique risks, including exposure to physical harm, financial loss, and occupational hazards, especially as they often operate in remote or high-risk areas.
“It is, therefore, imperative that they are insured under the ECS to mitigate these risks and provide them with the necessary protection. By ensuring that agency banking operators are covered, we not only protect the operators themselves but also strengthen the foundation of financial inclusion in Nigeria,” he said.
He added that the ECS was one such policy that embodies the values of fairness, equity, and safety for workers, especially in emerging sectors like fintech which employ a dynamic and diverse workforce across both the formal and informal sectors.
General Manager of the Informal Sector Department, NSITF, Chikamadu Onyewuchi, listed the benefits of the ECS to agency banking and the fintech companies, stating that it enhances workers’ security and productivity, increases awareness of agency banking roles, talent retention, potential reduction in liability for financial institutions and also improves morale and loyalty, knowing they are protected, valued and more motivated to perform efficiently.
On the consequences of not implementing the ECS, Onyewuchi said, would lead to financial vulnerability, low productivity, and persistent inequality that continues to be a mirage.
She encouraged employers in agency banking to embrace ECS to enhance workers’ safety and financial inclusion.
Speaking on ‘Critical Review Analysis of the Operations and Employer Contributions to the Nigerian Social Insurance Trust Fund (NSITF): Prospects and Challenges, the National President of the National Union of Banks, Insurance and Financial Institutions Employees (NUBIFIE), Anthony Abakpa, lamented that there have been instances of mismanagement, corruption and lack of transparency, which have undermined public trust in the Fund.
Noting that the ultimate measure of the NSITF’s effectiveness was its ability to disburse benefits to eligible beneficiaries in a timely and efficient manner. However, while the Fund has successfully provided compensation to many workers, there are cases where delays, bureaucratic red tape and inadequate communication have impeded the process, he said.
This, he said has led to dissatisfaction among beneficiaries and questions about the Fund’s efficacy.
The Regional Manager, NSITF, Mainland, Agboma Okoroafor, said by taking advantage of the vast network of agents and mobile platforms, the benefits could be brought closer to workers, particularly in remote and underserved areas.
Stating that the partnership would make it easier for more Nigerians to access the security that NSITF offers, she called on all to champion a workplace culture that prioritises safety, fairness and protection for all employees.
According to her, “Together, we can build a system that not only enhances agency banking and mobile money operations but also strengthens social protection for all Nigerian workers.
