The Managing Director of the Nigeria Social Insurance Trust Fund (NSITF), Barrister Oluwaseun Faleye, has emphasized the urgent need for every business in Nigeria—big or small—to embrace social insurance as a critical safeguard for their workforce.
Speaking at a stakeholder sensitization programme in Enugu, Faleye addressed participants from the informal sector. The event, held at Golden Royale Hotel, focused on extending social protection to this often-overlooked segment of the economy.
Represented by Chika Onyewuchi, General Manager of the Informal Economy Department, Faleye said:
“Social insurance is not a privilege for big corporations. It is a necessity for every Nigerian business.”
He described the informal sector as the “backbone and heartbeat of the Nigerian economy,” but also labeled it the most vulnerable—exposed to risks, economic shocks, and lacking any form of structured safety net.
Faleye referenced the Employee Compensation Act of 2010, which mandates all employers in Nigeria to contribute 1% of their payroll to the NSITF. This fund covers workplace injuries, occupational diseases, disabilities, and deaths related to employment.
“The challenge is clear: We must connect the informal sector to protections and systems that help them not just survive—but thrive,” he said.
The NSITF’s role goes beyond compensation. According to Faleye, the Fund also promotes occupational safety through:
- Free workplace safety audits
- Compliance monitoring
- Safety awareness campaigns
- Training for employers and employees
This is part of an ongoing effort by the current NSITF leadership to expand the social safety net and support workers across Nigeria.
“We advocate safety in the workplace,” Faleye said. “When we protect workers, we empower businesses. And when businesses grow, so does the nation.”
If you’re running a business in Nigeria—formal or informal—joining the Employee Compensation Scheme ensures:
- Legal compliance
- Financial relief during work-related incidents
- Improved worker morale and productivity
- A reputation for responsible business practices
