NECA members contribute 80% of employment compensation fund

Mof Nigeria Employers Consultative Association ( NECA) contributed more than 80 per cent of the Employees Compensation Scheme ( ECS) operated by the Nigeria Social Insurance Trust Fund ( NSITF).

The Managing Director of the NSITF, Maureen Allagoa, who disclosed this in Abuja, declared NECA as the Fund’s most reliable social partner in the implementation of the ECS. While expressing appreciation to members of NECA, the NSITF boss said she expects the figure to rise further in the current year. She added that the Fund will continue to partner with and consult NECA in all major decisions that affect the two organisations. Allagoa stated that it was on the advice of NECA that it introduced a modified one- off registration fee of N20,00 for newly registering employers and a recurring certificate processing fee of N30,000 for employers requesting compliance certificates.

She added that the Fund has decentralized its compliance certificate processing by divesting over 90 per cent of the process to the branches and regions, while the head office only produces the certificate for onward delivery to the employers.

Allagoa explained that this step was aimed at shortening the turnaround time for the issuance of certificates, stressing that the ongoing digitization of the Fund via the E- NSITF will reduce the exercise to 48 hours. Allagoa further urged NECA to assist the Fund in its attempt to enforce the one per cent deduction from the total remuneration as stipulated by the ECS instead of one per cent of basic, housing and transport as still being practiced by some private employers despite an updated communication on the issue by the NECA secretariat.

In his remarks, Director General of NECA, Adewale Oyerinde, who appreciated the critical role the NSITF plays in stabilising the world of work, pledged the continued support of the Organised Private Sector ( OPS) to the Fund as a social partner despite the downturns in the national economy.