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Legislators

National Assembly Resolves to Strengthen Employee's Compensation Scheme (ECS)

Strategic Insights

— 2 min read

The Senate and House of Representatives Committees on Labour, Employment, and Productivity, in collaboration with the Nigeria Social Insurance Trust Fund (NSITF), have resolved to strengthen the Employee's Compensation Scheme (ECS). The lawmakers have assured the NSITF of their unwavering support to effectively discharge its mandate, strengthen its operational capacity, and achieve the objectives of the ECS. They also resolved to engage their respective state governors and local government chairmen to ensure full participation and compliance with the ECS.

Key Takeaways:

  • The lawmakers have resolved to ensure that provisions for ECS contributions are adequately captured and funded in the annual budgets of all Ministries, Departments, and Agencies (MDAs) to expand the scheme's coverage across all tiers of government.
  • The NSITF shall intensify its efforts to broaden the scheme's coverage by implementing aggressive sensitisation campaigns, forging strategic partnerships, and adopting innovative approaches to bring more employers and workers under the ECS umbrella.
  • The Board and Management of NSITF shall align the Fund's governance and operational frameworks with International Social Security Association (ISSA) guidelines on good governance, ensuring increased transparency, accountability, and sustained high performance across all areas of its operations.
  • The Health, Safety, and Environment (HSE) officers of the NSITF shall receive focused training on digital reporting systems and compliance monitoring tools to enhance workplace safety oversight, improve data-driven decision-making, and encourage a proactive approach to accident prevention.
  • The number of employers registered under the ECS has increased significantly over the past year, reflecting growing awareness and compliance with the scheme's provisions.
  • The number of claims processed and paid out within the reporting period has doubled compared to previous years, indicating improved efficiency in claims administration, but also highlighting an increase in workplace incidents that require attention.
  • The second and third tiers of government (state and local governments) are yet to fully embrace the ECS, resulting in a substantial coverage gap that must be urgently addressed.

Statistics:

  • The number of employers registered under the ECS has increased significantly over the past year.
  • The number of claims processed and paid out within the reporting period has doubled compared to previous years.
  • The new legislation proposed to repeal the existing NSITF and ECA Acts and replace them with a new, more comprehensive legislation aims to strengthen the ECS.

Sources:

  • Communique signed by Chairman Senate Committee on Labour, Employment and Productivity, Senator Diket Satso Plang, his counterpart in the House of Representatives, Hon. Adegboyega Adefarati, the NSITF Board Chairman, Hon. Olushola Olofin, and the NSITF Managing Director/Chief Executive, Barr. Oluwaseun Mayomi Faleye.

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