The Nigeria Social Insurance Trust Fund (NSITF) has onboarded treasury-funded Ministries, Departments and Agencies (MDAs) into the Employees' Compensation Scheme (ECS) and commenced payment of claims to beneficiaries. This was announced by NSITF Managing Director, Oluwaseun Faleye, during a familiarisation visit by the Permanent Secretary, Federal Ministry of Labour and Employment, Dr. Kamil Shoretire, to the NSITF headquarters in Abuja.
According to Faleye, the first batch of five beneficiaries had already received compensation at an event witnessed by the Permanent Secretary. This development is one of the outcomes of the reforms undertaken by the Fund over the past two years. The NSITF boss said the Fund was also at an advanced stage of engagement with the Lagos and Taraba State governments, while discussions with several other states were ongoing, to expand coverage under the ECS.
Faleye provided an account of the reforms since the current management assumed office in July 2024. The Fund inherited significant reliance on manual processes, a management structure heavily concentrated at the top, career stagnation, gaps in the deployment of personnel and resources, and institutional processes requiring modernisation. The management commenced a comprehensive staff audit to provide an objective assessment of the Fund's workforce structure and organisational needs.
Recommendations from the audit were being implemented in phases, alongside a digital transformation programme designed to move the Fund from predominantly manual processes to integrated and responsive systems. The management also embarked on a Voluntary Exit Exercise to address structural imbalances, create a leaner and more functional organisation, clarify responsibilities and provide renewed opportunities for career progression.
Improvements were also being made to the Fund's operational environment and infrastructure. The Operations Directorate had been relocated to the Mukhtar El-Yakub Building, while branches across the country were undergoing renovation. Offices operating under branch-in-branch arrangements were being provided with dedicated spaces, while furniture, ICT equipment, printers and transportation capacity were being deployed progressively.
Faleye said sustained capacity building was being undertaken to strengthen staff capacity and improve service delivery. The reforms had positioned the Fund to expand its coverage and improve its ability to deliver compensation to workers covered by the ECS. He acknowledged that the Fund remained a work in progress, with more work required to expand coverage to the informal workforce, strengthen compliance, improve data and digital integration and enhance claims administration.
The Ministry of Labour and Employment was described as a strategic partner in strengthening Nigeria's social protection architecture. Faleye called for closer collaboration to accelerate the reforms and reiterated his commitment to leaving the Fund better than he met it. Shoretire commended the NSITF management for bold reforms and visible improvements in the Fund and pledged the ministry's continued support for efforts to strengthen Nigeria's social security system.
Key points
- NSITF has started paying claims to beneficiaries of the Employees' Compensation Scheme.
- The Fund has onboarded treasury-funded MDAs into the ECS.
- NSITF is working to expand coverage to the informal workforce and strengthen compliance.
