FG Directs Mandatory Employees’ Contributions to NSITF Scheme

Onyebuchi Ezigbo in Abuja

The federal government has issued a circular for the commencement of the mandatory contributions of one per cent of the emoluments of all public servants to the Employees’ Compensation Scheme of the Nigeria Social Insurance Trust Fund (NSITF)

A statement by NSITF’s General Manager, Corporate Affairs, Nwachukwu Godson, noted that the federal government gave the directive through a circular dated September 22, 2023, which was signed by the Secretary to the Government of the Federation, Chief George Akume.
He said the circular was copied to all arms of the federal government and agencies under them.

Nwachukwu, said the directive was sequel to an earlier decision taken at the Extraordinary Session of Federal Executive Council under President Buhari had on Monday, May 15, 2023, where approval was given for statutory one per cent e-deduction from the total emoluments of the federal public servants as employee compensation contributions, with  effect from January 2023.

According to Godson, the circular stated that the Minister of Finance was directed to, “deduct the contributions from source and remit same to the NSITF for the payment of claims and compensations to deserving beneficiaries for death, injury, disease or disability sustained in the course of duty  as provided  in the Employees’ Compensation Act, 2010, Act No. 13.

“It further directed all ministries, departments and agencies to “ensure strict compliance with the circular.”    
The Managing Director of the NSITF, Maureen Allagoa, hailed the bold decision of the federal government, saying the Fund had further been energised to deliver on its responsibilities to the Nigerian workers.  

While on an official visit to the new office, housing the Abuja Region and FCT Branch of the Fund in the Maitama area, Allagoa said: “we received a circular from the office of the Secretary to the Government of the Federation, making it compulsory for one per cent contribution from the total emoluments of public servants to be compulsorily remitted to the NSITF in view of the Employees’ Compensation Act.

“This is a giant  plus to our charge as the nation’s core social security agency as it will give a big push to the momentum of our operations in their ramifications. There shall be no excuses on our own part in fully keying into the Renewed Hope Agenda of the federal government. The effort is collective and we shall not rest on our oars until we reach out to all Nigerian workers whether in the formal or informal sector.”

She also stated that the fact that the current government had taken the, “bold and great step means we are moving in the right direction.” Observing that the urgency given to securing a new office for the Abuja region and the FCT branch was in line with her commitment to decent work, Allagoa re-assured the workers of, “rights at work, human dignity, social protection and dialogue in line with the Decent Work Agenda of the International Labour Organisation.”  
“We have gone round and observed some challenges which will be tackled forthwith. Staff should feel comfortable, your welfare is key because once we get the staff welfare correct, everything falls in place in terms of performance.

 “Earlier in the year,  some buses were procured and sent to offices in each region to ease operations. And recently, we received another batch of ten buses for distribution while the rest will come at the end of the year.
“To further boost morale, management is putting together a reward package for those staff who personally and collectively distinguish  themselves in the performance of duty. The measure will spur others on.

“Besides, we are working out a  new three-tier structure for MPR.  First is the monthly online engagement with branch and regional managers to keep track of their performance, then the quarterly regional MPR – where two or three regions will be brought together at a centre with delegates sent from the head office and finally, the biannual MPR.”