The Nigeria Social Insurance Trust Fund (NSITF) will continue to safeguard its independence amid regulatory overreach, the chair of the management board of the Fund, Sola Olofin, has said.
Olofin stated this in his welcome address at the 69th board meeting and third in the life of the current board, which was held in Abuja recently. Olofin made the statement in light of some of the overlapping and ambiguities contained in the Finance Act 2021 concerning the status of contributions to the Fund.
“The Financial Act 2021 has introduced changes with significant implications for NSITF. Of particular note is the conversation around whether contributions made to the Fund should be classified as revenue within the purview of the Federal Inland Revenue Service (FIRS). This is not merely an accounting classification; it has far-reaching effects on the autonomy, operations and the financial health of the Fund,” he said.
The chairman urged stakeholders, including the board members, to rally behind the Oluwaseun Faleye-led management to strengthen the Fund’s policy stance on the Financial Act 2021 and contribution classification.
“As a board, we have a duty to engage actively on this front to ensure that our position is clearly articulated and that the peculiar nature of NSITF’s contributions, which are statutory and earmarked for specific social security objectives, is fully appreciated by policymakers and tax authorities.
“We must continue our advocacy, backed by sound legal and policy arguments to safeguard the Fund from regulatory overreach that may impair its ability to meet statutory obligations.”
While welcoming members, Olofin said the meeting is not only a statutory requirement, but a demonstration of a collective commitment to stewarding the Fund in accordance with members’ fiduciary duties, the enabling acts, and the trust reposed in them by President Bola Tinubu.
In the meantime, the Managing Director of the Fund, Oluwaseun Faleye, has urged employers of labour to adopt the Employees Compensation Scheme (ECS) as a panacea to industrial unrest in the country.
The NSITF chief made the call during a courtesy visit by the leadership of the Oil Producers Trade Sector (OPTS) of the Lagos Chamber of Commerce to his office.
Faleye, in response to concerns raised by the OPTS’ contingent, advised employers to educate their employees on the welfare policies they have in place for them, saying such a step would promote industrial harmony and boost productivity.
“You need to highlight your efforts at meeting their welfare demands through a compensation scheme, health benefits and tie this to outputs,” he said.
Faleye maintained that workers’ agitations are not always limited to a salary and wage increase. He charged employers to ensure that their sub-contractors and suppliers and third parties in working relationships with them comply with the ECA by enrolling their employees in the ECS to avoid vicarious liabilities.
In his address, the leader of the OPTS contingent, Steve Ojeh, lauded Faleye for his leadership qualities. He noted that the two organisations had areas of mutual benefit they could partner on, while expressing concerns over the planned increase in the contributions to ECS beyond one per cent and expanding the scope beyond basic salary, housing and transport allowances.
