The Nigeria Social Insurance Trust Fund (NSITF) has begun a major restructuring of its operations, moving from predominantly manual processes and a top-heavy management structure towards a more digital, streamlined and accountable institution.

Its Managing Director, Oluwaseun Faleye, said the reforms, initiated after the current management assumed office in July 2024, were already improving the Fund’s capacity to extend workers’ compensation and social protection to previously uncovered categories of Nigerian workers.

Faleye spoke when the Permanent Secretary, Federal Ministry of Labour and Employment, Dr Kamil Shoretire, led a delegation on a familiarisation visit to the NSITF headquarters in Abuja.

He said the Fund inherited significant structural and operational weaknesses, including extensive reliance on manual processes, concentration of management responsibilities at the top, career stagnation, ineffective deployment of personnel and resources, and institutional processes that had failed to keep pace with contemporary requirements.

He said addressing the shortcomings was necessary before meaningful reform could begin.

Faleye said management subsequently commenced a comprehensive staff audit to establish the Fund’s actual workforce structure and organisational needs, with recommendations being implemented in phases.

“One of the first things we did was to undertake a comprehensive staff audit and provide an objective assessment of our workforce structure and organisational needs,” he said.

The Fund, he added, had also begun a digital transformation programme to replace predominantly manual processes with integrated systems designed to improve efficiency, responsiveness and accountability.

A Voluntary Exit Exercise was introduced to address structural imbalances and create a leaner organisation with clearer responsibilities and greater opportunities for career progression.
The reforms have also extended to the Fund’s physical infrastructure and working tools.
Faleye said the Operations Directorate had been relocated to the Mukhtar El-Yakub Building, while branches nationwide were undergoing rehabilitation.

Branches operating under branch-in-branch arrangements were also being provided with dedicated premises.
He said furniture, information and communications technology equipment, printers and transportation facilities had been deployed progressively, while staff capacity-building programmes were being sustained.

Faleye linked the internal reforms to what he described as an expansion in the Fund’s coverage of Nigerian workers.

He disclosed that treasury-funded Ministries, Departments and Agencies had been onboarded onto the Employees’ Compensation Scheme (ECS), with claims payments already commencing.

The first batch of five beneficiaries recently received compensation at an event witnessed by the Permanent Secretary.

He said the development marked an important step in moving the reforms beyond administrative restructuring to actual delivery of workers’ protection.

“We are at an advanced stage of engagement with the Lagos State Government and Taraba State Government, while discussions with several other States are progressing,” Faleye said.

He added that the Fund was strengthening partnerships with federal MDAs and regional organisations to deepen ECS coverage, particularly among workers in the informal and emerging sectors of the economy.

Despite the progress, Faleye acknowledged that the reform programme remained a work in progress.

He identified expansion of coverage to informal workers, stronger employer compliance, improved data and digital integration, and more efficient claims administration as areas requiring further attention.

“After two years, I believe it is fair to say that NSITF is no longer where it was when this management assumed office. The digital transformation has begun. The organisational structure is being progressively reconfigured. The top-heavy management structure is being addressed,” he said.

Faleye said the Ministry of Labour should be regarded not merely as the Fund’s supervising ministry but as a strategic partner in strengthening Nigeria’s social protection architecture.

He called for closer collaboration between the ministry and the Fund to accelerate the reforms and improve the reach of social protection.

“Our commitment is to continue to leave no stone unturned in building an NSITF that is transformed, efficient, effective, accountable and transparent; an institution that workers can trust, employers can engage with confidently, and the Government can rely upon to deliver,” he said.

The NSITF managing director reiterated his commitment to leaving the Fund stronger than he found it.

“I have repeatedly assured the staff of NSITF that I will leave the Fund better than I met it. That remains my commitment,” he said.

Shoretire commended the NSITF management for what he described as bold reforms and visible improvements, pledging the ministry’s continued support for efforts to strengthen Nigeria’s social security system.

The Permanent Secretary, however, urged the Fund to work more closely with sister agencies to extend the Employees’ Compensation Scheme to the informal sector.

He also called for greater emphasis on workplace accident prevention and occupational safety, rather than relying principally on compensation after injuries occur.

Shoretire further urged the NSITF management to strengthen cooperation with its governing board to ensure stability and effective administration of the Fund.

The test of the reforms, however, will be whether the institutional changes translate into measurable improvements in coverage, employer compliance, workplace safety, claims processing and access to compensation for workers across the formal and informal economies.