• Employers say increase may lead to job losses, factories closure
There are indications that the Federal Government and employers in the private sector may be at loggerheads over the proposed increase in the Nigeria Social Insurance Trust Fund (NSITF) employee compensation levy, with employers warning that any further increase above the one per cent statutory levy could lead to potential job losses and factory closures.

Already, under the Employees’ Compensation Act (ECA) 2010, employers are mandated to contribute at least one per cent of their total monthly payroll to the Employees’ Compensation Fund (ECF), which is used to provide financial support and medical assistance to employees impacted by workplace injuries.

The Federal Government advocated for the increase yesterday in Lagos at the Safe Workplace Intervention Project (SWIP) yearly stakeholders’ interactive enlightenment forum and awards ceremony, organised by the Ministry of Labour and Employment, NSITF, and the Nigeria Employers’ Consultative Association (NECA).

The Minister of State for Labour and Employment, Nkeiruka Onyejeocha, who called for the review of the compensation, expressed concern over the “peanuts” given to families, whose beneficiaries died in the course of work.

According to her, the narratives have to change, and employers must comply with the standards.

“A safe workplace is not optional; it is legal. I believe that moving forward, we should also be reviewing the legal system and see how it complies with the quantum of workers when lives are lost.

“I strongly advocate that the compensation should be reviewed. When people die, their families are just given peanuts. The narratives have to change, and they must comply with the standard. SWIP helps to shift the mindset of employers from treating safety as an expense to recognising it as an investment in the people. I wish to reaffirm that this administration will not compromise on occupational safety and health,” she said.

However, speaking on behalf of employers on ‘ECA 2010 Compliance and Claims: Employer Challenges and the Way Forward’, the Director, Corporate Services, Seplat Energy Plc, Dr Steve Ojeh, warned about the implications, stating that it might lead to potential job losses, investment challenges, expansion of payroll items, limited performance-based incentives, and factory closures among others.

Represented by Senior Manager, Industrial Relations, Seplat Energy Plc, Ken Okoroh, he highlighted challenges employers were currently going through, viz-a-viz economic pressure, efficiency gaps, multiplicity of levies, and limited utilisation of benefits among others.

Ojeh appealed that the Federal Government should consider that the one per cent contribution by employers be rather reduced, considering the numerous challenges businesses were already going through to remain afloat to save thousands of jobs.