Tuesday, February 27, 2024
MARKET UPDATE
Advertisement

TheCable

Advertisement

FG approves N15bn infrastructure upgrade concession for phase two of e-NSITF

FG approves N15bn infrastructure upgrade concession for phase two of e-NSITF
April 19
23:18 2023

The federal government has approved the phase two of the electronic Nigeria Social Insurance Trust Fund (e-NSITF), which will enable concessionaires to upgrade the infrastructure for N15 billion.

Chris Ngige, minister of labour and employment, spoke to journalists at the end of the federal executive council (FEC) meeting, presided over by Vice-President Yemi Osinbajo on Wednesday.

Ngige said Nigeria operates under the Employee Compensation Act (ECA), 2010.

Under the ECA, employers are expected to make a minimum contribution of 1 percent of the total monthly payroll into the employees’ compensation fund.

Advertisement

“Therefore, what we are trying to do is to align the contributions of NSITF to make it fraud-free. People should be able to make the contributions of workers with ease even from the comfort of their office and generate certificates,” he said.

“You know that the ECA makes it mandatory for all employers to insure through a token contribution of percent (sic) of emolument of their workers to the fund called social trust fund of the NSITF.

“And that is the fund with which, if you have an accident or disease condition or debt or disability in the course of work, you can make a claim, like an insurance claim.

Advertisement

“So, we now want to refine it, because there are cases of enforcement officers going to companies to tell the company ‘well, you have 1000 workers, but you can pay for only 100’. That is shortcutting the organisation. There are losses of revenue from that.”

Ngige said FEC had earlier approved phase one of the e-NSITF, which is “minimal infrastructure and cloud activity”.

“Now is for a concessionaire to do infrastructure and upgrade in the neigbourhood of N15 billion and then after that, it will take some percentage on incremental revenue that accrued. It will make the form more liquid now and we will be able to do our functions appropriately,” Ngige said.

“So, the council gave the go-ahead today and approved it and directed ICRC, which is the body that is authorised by law to enter into such concession to continue the process and liaise with the office of the attorney-general of the federation.”

Advertisement

The minister said the council also granted approval for the amendment of obsolete laws of the country, in line with the International Labour Organisation (ILO) standard.

“The labour laws of the country, as presently being operated, are really obsolete laws. And the ILO has pointed out that we need to bring our laws to be concurrent with international labour standards and conventions and principles at work,” he. said.

Click on the link below to join TheCable Channel on WhatsApp for your Breaking News, Business Analysis, Politics, Fact Check, Sports and Entertainment News!

Tags

0 Comments

No Comments Yet!

There are no comments at the moment, do you want to add one?

Write a comment

Write a Comment

error: Content is protected from copying.