News

May 9, 2017

Ngige tasks new NSITF boss on compliance with Employment Compensation Act

Ngige tasks new NSITF boss on compliance with Employment Compensation Act

Dr Chris Ngige

Sen. Chris Ngige, Minister of Labour and Employment has urged the newly appointed Managing Director, Nigerian Social Insurance Trust Fund (NSITF), Adebayo Shamufun, to ensure employers complied with the Employment Compensation Act.

Ngige made the call when the newly appointed Managing Director, NSITF, with his management team visited him in his office on Tuesday in Abuja.

The Employment Compensation Act (ECA) is an act that directs employers to contribute one per cent of their total emoluments cost to the NSITF.

The amount is set aside as insurance to employees with compensation for injury in work place, mental stress, occupational hazard, and even death.

Ngige said that it was unfortunate that the law was not being adhered to by many employers in the country.

According to him, it is mandatory for government and all employers of labour to pay a contributory amount toward the realisation of this particular aim.

“Unfortunately, this law has not being enforced but it is a national law.

Dr Chris Nwabueze Ngige

“It is not meant for the Federal Government alone. It is meant for employers in the public and private sectors.

“We have stretched it further that one man employer, who have domestic workers like driver, cook, and among others are supposed to subscribe to the Fund.

“That is, if the number of the employees are within the ambit of the law.

“The law is observed in the bridge majorly and that is why today the NSITF, as we have it, has found it difficult to meet up with its obligations of the fund, ‘’he said.

The Minister said that it was imperative for the NSITF to ensure that employers comply with the law as it was part of its cardinal duties to ensure that of workers are taken care of.

He explained the management must ensure that workers are catered for in times of accidents, death, injuries, disabilities, diseases, while still in active service.

He, however, urged the NSITF boss to come up with an action plan that would generate surplus investment for the fund in fulfillment of it mandate.

“So, you must come up with an action plan so that you can be able to achieve milestones.

“Because, the job in NSITF is very huge for those who do not understand.

“Let me also warn you that it is not a tea-party as the act makes provision for you to brief Mr President at the end of the year with a comprehensive report on your achievements.

“So, I must congratulate you and urge you to read the act that establish the fund, including some Convention of the International Labour Organisation(ILO).

“Particularly Convention 102 of the ILO, because that is where you have Employment Compensation for workers which we later transited in to ECA, ‘’Ngige said.

He assured the NSITF boss that the ministry would give him the necessary assistance needed to succeed in the new assignment.

Earlier, Shamufun, the NSIFT Chief Executive Officer, assured the minister that he would take the fund to greater high.

“We are here to assure that, we will work with you so that we can achieve the best for the fund,‘’ he said.