NSITF to clamp down on defaulting employers over registration

.. to seek amaendment to fund’s Act

The Nigeria Social Insurance Trust Fund (NSITF) has said that it will soon begin the process of mandating defaulting employers to register with the fund.

The Managing Director and Chief Executive of the fund, Adebayo Somefun, who said this in Abuja, Federal Capital warned employers of labour to comply with this directive or be seriously sanctioned in line with the provision of the law setting up the Fund.

He said that although government has made NSITF registration mandatory for companies executing government contracts, many companies still defaulted.

Somefun added that the NSITF has employed dialogue for too long; and will soon have to sue recalcitrant employers who perpetually refuse to heed the calling of the Fund.

He, however, said that the penalty stipulated in its Act for defaulting employers of labour was too small and did not serve in anyway as a deterrent to them.

Somefun, therefore, added that the NSITF would seek an amendment to its establishment Act and the Employees’ Compensation Act, so that employers of labour can be more compelled to enrol their employees in the scheme.

He said, “Dialogue is very important, we will try to persuade them and also use the apparatus of government and the law. We must mandate them because it is mandatory.

“Where persuasion has failed, I believe we can try to mandate them: There have been circulars previously written to them, but we still have some recalcitrant employers who are yet to comply.

According to him,“We will still try and persuade them and enforce where necessary, unfortunately the penalty is so small. “So, I believe that this Act also has to be amended to give stiffer penalties against defaulting companies.”

He said that he was currently in discussion with his management team about how best to pursue the amendment of the Act to ensure that stiffer penalties are put in place.

Speaking on the core functions of the NSITF, he said that part of his plans for the Fund is to make Nigerians aware of its core functions .

He said that the statutory responsibility of the NSITF was to compensate employees, who suffer from occupational diseases, sustain injury or disability from accidents from work place or in the course of employment.

He said,“NSITF provides compensation to the dependants of an employee who dies in the course of work. NSITF helps the employer to save for the rainy day.”

He said that the ECA provides a no-fault scheme, because it is a social fund, which intends to ensure speedy compensation of employees; adding that there iare both cash and non-cash benefits.

The MD added that any injured employee could be trained or rehabilitated under the NSITF scheme in any vocation that is suitable for their current condition.

He said that the Fund had made it a point of duty to complete any request for compensation within two weeks; adding that he would work to bring the processing time down to days.

Somefun said,“Compensation has started, that is why you have not seen people carrying placards saying that they have not been paid. There is no request for compensation that has been brought to us here that has not been treated and speedily.”