close
Sunday, November 2, 2025

Employers accused of sabotaging NSITF operations

The Nigeria Social Insurance Trust Fund says some employers are sabotaging its operations by under-declaring the salaries and staff strength of their organisations.

• November 2, 2025
NSTIF building
NSTIF

The Nigeria Social Insurance Trust Fund says some employers are sabotaging its operations by under-declaring  the salaries and staff strength of their organisations.

The managing director of NSITF, Oluwaseun Faleye, disclosed this in an interview on Sunday in Abuja.

“We have seen cases where organisations report lower salaries or fewer employees just to reduce their contributions. We are addressing this through advocacy and education because under-declaring salaries ultimately harms workers.

“Benefits are calculated based on reported earnings. So, if an employer declares ₦100,000 instead of ₦200,000, compensation will also be based on the lower figure. That shortchanges the employee, sometimes significantly. We have also noticed cases where companies fail to update their staff registers after employee turnover,” he said.

Mr Faleye also identified low awareness of NSITF operations as another major challenge of the fund. He said many people are still unaware of the Employees’ Compensation Scheme and its benefits.

“Each time I speak to new groups about the scheme, they are often surprised by what they have been missing,’’ he said.

The ECS is governed by the Employees’ Compensation Act 2010, which establishes a mandatory social insurance program for most employees in the public and private sectors.

The act mandates employers to register with the NSITF and contribute to an Employee Compensation Fund, which provides compensation for work-related deaths, injuries, diseases, or disabilities.

The scheme aims to provide adequate compensation, vocational rehabilitation, and a social safety net for employees and their dependents.

Mr Faleye said another of the biggest internal challenges facing the organisation was the manual processes that still existed within the system. He said the manual operation processes were slowing the Fund down and making it less agile.

“We are addressing this by digitalising our operations, from online registration portals in the compliance department, to digital workflows in our legal and claims departments. Once completed, this transformation will make us far more responsive and efficient,” he said.

Speaking on the ongoing amendment to the NSITF Establishment Act, Mr Faleye said, they looked forward to engaging constructively with the National Assembly to ensure that whatever emerged from the process ultimately benefits Nigerian workers.

The amendment is being championed by the Senate Committee on Labour and Employment, chaired by Diket Plang, and has passed second reading in the Senate. The amendment reportedly seeks to reduce the representation and influence of employers and workers, who are the main contributors to the Fund,  on the NSITF’s governance board.

Critical stakeholders, including the Nigeria Labour Congress, had faulted the ongoing amendment, contending that it would increase government control over the NSITF via a board dominated by political appointees rather than tripartite stakeholder representation.

The stakeholders warned that the amendment could weaken transparency, accountability, and good governance mechanisms for NSITF.

Meanwhile, the NSITF boss has said that he would want to leave behind “an organisation that is responsive, professional, and efficient; one that takes full ownership of its responsibilities”.

Mr Faleye added that a capable and motivated workforce will naturally reflect and strengthen the quality of service delivery to Nigerian workers.

(NAN) 

We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.

More from Peoples Gazette

farmers

Agriculture

FG tasks ECOWAS on leveraging financing strategies for agroecology

The federal government has urged stakeholders in the agriculture and finance sectors in the West Africa region to leverage financing strategies to enhance agroecology practices

Katsina State

Politics

Katsina youths pledge to deliver over 2 million votes to Atiku

“Katsina State is Atiku’s political base because it is his second home.”

Audu Maikori

Politics

Audu Maikori joins APC in historic Southern Kaduna realignment

Mr Maikori formally joined the All Progressives Congress at a mega rally in Kafanchan on Saturday.

Uba Sani of Kaduna State (Credit: Twitter)

States

Governor Uba Sani makes fresh appointments

Governor Uba Sani urged the appointees to see their appointments as a call to service.

Atiku Abubakar

Politics

Anambra Guber: APC must not snatch, run away with people’s mandate, Atiku tells INEC chair

Former Vice President Atiku Abubakar has charged the new INEC chairman, Joash Amupitan, on electoral integrity in the forthcoming gubernatorial election in Anambra State, saying the ruling All Progressives

PDP

Politics

PDP chieftain urges aggrieved members to resolve disputes internally ahead of convention

Mr Adeoye said genuine party members should embrace peace and unity ahead of the party’s planned national convention.

Federal secretariat in Osun

States

Civil servants decry 14-year delay in completion of federal secretariat in Osun

The workers, in separate interviews in Osogbo, lamented that the project, awarded in 2011, is still under construction.

Gully erosion in Edo

Opinion

Rethinking Nigeria’s GDP: The trillion-naira pivot to unlock state-level biodiversity finance

Nigeria loses annually about 350,000 hectares of forest—equivalent to 490,000 football fields—resulting in soil erosion, biodiversity collapse, and increased climate vulnerability.