Reps investigate non remittance of contribution by NSITF - Saga Gist - Top Source for Nigeria News


Thursday, July 18

Reps investigate non remittance of contribution by NSITF

The House of Representatives Thursday set up an Ad-hoc Committee to investigate the non-remittance of contributions to the Nigerian Social Insurance Trust Fund by the Federal, States, Local Governments and Parastatals, Public Corporations and Companies.

The committee is expected to report back within six (6) weeks for further legislative action.

This was sequence to motion titled “Call for Investigation of the Non-Remittance of Contributions into the Nigerian Social Insurance Trust Fund (NSITF) by the Federal, States and Local Governments, Parastatals, Public Corporations and Companies from 2010 to Date” sponsored by Hon. Zakaria Dauda Nyampa and 8 other Lawmakers.

The lawmaker while moving the motion noted that the Employees Compensation Act, 2010 provides a guaranteed and adequate compensation for all employees or their dependents for any death, injury, disease or disability arising out of or in the course of employment,.

He said same goes for rehabilitation for employees with work related disabilities, establishment and maintenance of a Solvent Compensation Fund managed for the interest of the employees or employers, among others;

He further noted “that Section 33 of the Act states that every employer shall within the first two years of the commencement of the Act, make a minimum monthly contribution of 1.0 per cent of the total monthly payroll into the Fund and subsequently, payment will be passed on estimates of the employer’s payroll for the year, actual assessment or based on minimum assessment;

He further noted “that the private sector players have, to a limited extent, been complying with the provisions of the Act, particularly, in view of Section 16(6)(d) of the Public Procurement Act, 2007 which makes it mandatory for bidders to have fulfilled all obligations to pay taxes, pensions and social security contributions, however, the Federal, States, and Local Governments and Parastatals.”

He said Public Corporations and Companies have all failed to make payments of their contributions to the Nigeria Social Insurance trust Fund (NSITF), despite the mandatory provisions of the Act

“Further notes that the definition of an employer under Section 73 of the Act is broad and covers all levels of government, given that it defines an ‘employer’ to include any Individual, Body Corporate, Federal, State or Local Government, or any of the Government Agencies, which has entered into a contract of employment to employ any other person as an employee or apprentice;

“Cognizant that by failing, refusing or neglecting to pay the statutory contributions to the Nigeria Social Insurance Trust Fund (NSITF), Governments at all levels are not only violating the law but are equally exposing the vast majority of the Nigerian workforce to uninsured and uncovered risks and occupational hazards.”

This, he said has by extension caused disjunction as “the large pool of workers cannot be compensated for injuries, mental stress, occupational hazards, hearing impairments, total/partial disability or disfigurement, among others;

“Aware that only members of the Armed Forces, excluding civilian employees of the Armed Forces, are exempted from mandatory employer’s contributions under the Act;”

Nyampa and the others observed that if the anomaly is not addressed, civil and public servants will continue to be short-changed and remain at the receiving end of a system that exposes them to occupational hazards, without any form of insurance or compensation.