NSITF Disagrees with N/Assembly on Remittance of N3.8bn

Onyebuchi Ezigbo

The Nigeria Social Insurance Trust Fund (NSITF) has faulted the claim by the House of Representatives Adhoc Committee on unclaimed funds that NSITF owes the federal government in respect of non-remittance of N3.8 billion Operating Surplus Funds between 2013-2020.

The agency explained that being a social security agency which is currently majorly funded from contributions of private sector employers to procure cover on behalf of their employees cannot be described as revenue. 

“The amount standing to the credit of the Employers Compensation Fund Account, does not fall under the Operating Surplus, intended by the Section 22 of the Fiscal Responsibility Act.  

NSITF is a Non-Treasury Funded Parastatal and the one  per cent contribution can be likened to insurance premium and not internally generated revenue.

A statement by the General Manager Corporate Affairs of the Fund, Ijeoma Okoronkwo said the balance in the Fund’s account  is meant to be invested in line with section 32(e) of the Employee Compensation Act 2010, in order to fulfill its obligations of payment of death claim, Medical compensation and rehabilitation expenses as they occur; and not meant to be remitted to the Consolidated Revenue  Fund. of the Federation.

“The fund thanks the National Assembly committee members for understanding in this regards,” the statement added.