How NSITF Safeguards Employees’ Contributions — MD

The Nigeria Social Insurance Trust Fund (NSITF) says its investment strategy is guided by prudence, transparency, and a preference for low-risk ventures that protect workers’ contributions.

Managing Director of the Fund, Mr. Oluwaseun Faleye, stated this in an interview with the News Agency of Nigeria (NAN) on Sunday in Abuja.

He explained that the NSITF, which administers the Employees’ Compensation Scheme (ECS), ensures that employees receive social insurance benefits for work-related injuries, diseases, disabilities, or death. Funded by employer contributions, the scheme also promotes workplace safety and welfare.

Faleye noted that the Fund prioritises security over profit, investing mainly in government-backed instruments such as treasury bills and bonds.

“The law permits NSITF to invest only in safe securities to protect contributors’ money. Our investment appetite is strictly low-risk prudence comes before profit in all our decisions,” he said.

He added that although the Fund had previously invested in real estate, recent focus has been on safer, low-risk portfolios to ensure sustainability.

Faleye emphasised that all investment decisions are subject to rigorous internal review and board approval to ensure accountability and transparency.

“Every investment proposal goes through due process. These funds are meant to compensate workers in the event of accidents, so we handle them with utmost care,” he said.

According to him, the NSITF also prioritises prompt payment of claims, workplace safety advocacy, and strengthening social protection for Nigerian workers.

He explained that under the Employees’ Compensation Act (ECA) 2010, employers are mandated to contribute one per cent of their total payroll to the Fund.

“The one per cent contribution is sufficient if all employers comply. The goal is not to increase the rate but to widen coverage,” Faleye said.

He expressed optimism that all workers in both the public and private sectors would eventually be covered under the ECS, and commended President Bola Tinubu’s administration for ensuring full compliance for treasury-funded federal workers.

“When workers know their welfare is protected, they’re motivated to perform better that’s the true essence of social protection,” he added.

Faleye said the Fund plans to explore a data-driven model in the future to adjust contribution rates based on industry risk levels while maintaining its focus on safeguarding Nigerian workers’ welfare.

(NAN)