NSITF: Beyond the headlines

In recent weeks, there have been so much media hype and unguarded commentaries concerning fraud or the semblance of it at the Nigeria Social Insurance Trust Fund (NSITF). A lot of people have misinterpreted this to imply that NSITF is a den of thieves. Nothing can be completely far from the truth. Whatever has been […]

In recent weeks, there have been so much media hype and unguarded commentaries concerning fraud or the semblance of it at the Nigeria Social Insurance Trust Fund (NSITF). A lot of people have misinterpreted this to imply that NSITF is a den of thieves. Nothing can be completely far from the truth. Whatever has been termed fraud at the NSITF can only be traced to the past; not the present. 

Any keen observer of the current leadership of NSITF will surely note that so far, the difference is clear between where NSITF was before the incumbent management team came, and where it is now. It is quite obvious, not only because the present management is obviously prudent and transparent in management of resources, and aggressive in achieving set goals, but there are also marked differences between making promises and taking steps to fulfil those promises. 

Yes, there have been cases of fraudulent activities at the NSITF traced to past administrations; and they are being investigated on the orders of the Minister of Labour and Employment, Dr Chris Ngige, under the watchful eyes of President Muhammadu Buhari. The outcomes of such investigations are being awaited. 

Meanwhile, a silent, deliberate anti-corruption crusade was initiated by the present management as soon as it took office. It successfully introduced and implemented a procurement policy hitherto unknown at the NSITF since 2012. 

The policy, which aims at practically promoting transparency and accountability in the procurement process, has received endorsement from the Bureau of Public Procurement (BPP), the Economic and Financial Crimes Commission (EFCC), and the Independent Corrupt Practices and other Offences Commission (ICPC). 

The implication is that management team led by Adebayo Somefun wants a situation where every job must be advertised and formal bidding held before the awards are made to the most competent, cost-friendly bidders. The re-introduction and observance of the due process policy has saved money for the organisation. 

There have been complete overhaul of the procurement operations; implementation of the public procurement guidelines to promote transparency of procurement operations; and establishment of procurement planning committee (PPC) to ensure proper implementation and due process in all contracts and consultancy jobs. These steps were taken after a critical evaluation of previously existing situations in a bid to eradicate corrupt acts.

As soon as it came on stream on May 2, 2017, Somefun and his team came up with a four-point agenda which it has been pursuing with uncommon zeal. A summary of the four-point agenda are: consolidating on the achievements of previous administrations and improving on them; raising the revenue base of the organisation to effectively meet its statutory responsibilities; re-branding NSITF through aggressive campaign to improve acceptance and patronage by the various stakeholders; and motivation of staff through improved welfare provision such that those responsible for the realisation of organisational visions and dreams would operate within an encouraging work environment and also derive job satisfaction. 

First of all, I am usually excited by the statutory functions of the NSITF which is anchored on the Employees Compensation Scheme (ECS) as enshrined in the Employees Compensation Act of 2010. The ECS is structured to provide social security and insurance for the injured employee in the course of work. Or in the case of death, it is structured to play the part of family trustee for the dependents left behind by the employee. 

Generally, NSITF is for the benefit of both the employees and their employers as it seeks to lighten or completely take away the burden placed on employers when their workers are incapacitated or lose their lives in the course of work. Under the existing law, such burdens are transferred to NSITF, which is the body recognised by law to handle it. 

In the last one year alone, under the present Management, 42 artificial limbs have been paid for by the Fund to cater for workers who lost their limbs while carrying out their duties at work. This number is a huge leap compared to only 12 that have been rehabilitated since 2011. It is also worth mentioning that between 2011 to April 2017, the Fund had paid N959, 855, 531.58 as claims to beneficiaries. However, between May 2017 and June 2018, the present management paid N625, 686, 207.03 to beneficiaries as claims and compensation. 

In anticipation of the large volume of data collection and storage based on increased effort to raise subscription by several employers of labour, the Fund decided to automate its operations. In this regard, the Fund contacted relevant stakeholders to assist in the areas of collation and storage of data for easy access by staff whenever required. The aim is to move operations of the Fund from manual to digital in line with acceptable global practice. Thus, new software, Electronic Revenue Collection Compliance and Compensation (ERC3) has been introduced to galvanise enforcement compliance, claims and compensation activity, and overall operations of the Fund.

On staff welfare, staff promotions no longer attract protest before it is carried out. The result of the staff promotion examination conducted in 2016 has been released. Promotion interview has been conducted. This exercise was the first since the inception of the ECS in 2011. A committee to ensure that deserving staff are properly placed in the hierarchy of the organisation was set up. Management also waded into the unresolved issue of unpaid allowances of staff from 2012. Regular payment of allowances has been restored. In addition, 5,769 staff have so far been trained nationwide for better productivity. From these interventions, previous hostile and explosive industrial relations atmosphere is now generally peaceful. 

So, what has been the result of the above efforts aimed at re-branding the NSITF? In financial terms, there have been great harvests. There has been considerable turn around in the Fund’s investment portfolio with management assiduously committing part of the Fund’s monthly collections to improve the investment.

From the inception of ECS in 2011 to when this management took over in May 2017, only N1. 042 billion was invested in the Federal Government’s Bonds and Treasury Bills. However, between May 2017 and June 2018, under the present management, N2.559 billion has been invested in bonds and treasury bills of the Federal Government. The 2015 financial statement has been audited but not concluded, and approval has been given to commence the financial audit of 2016 and 2017.

Kalio wrote this piece from Abuja