NSITF institutes corporate governance to boost operations

NECA lauds management over non-combative method

The Nigeria Social Insurance Trust Fund (NSITF) is institutionalizing corporate governance structures to boost its operations, its Acting Management Director, Ismail Agaka has disclosed.

The NSITF boss, who stated while speaking in Lagos during a courtesy call on the Director General of Nigeria Employers Consultative Association (NECA), Segun Oshinowo, explained that corporate governance would, clearly spells out procedures and processes of NSITF. He explained: “Corporate governance is a system, methods, processes and procedures that governs organizational businesses.

Where there is a breakdown in the procedure, there would be negative impact not only on the organization, but also on other stakeholders who relate with the organization. It is no secret that not only NSITF, but also the public sector over the years has witnessed this dysfunctional corporate governance. What we are therefore doing at the NSITF is in tandem with the change mantra of the present administration.”

He described NECA as a strategic social partner with whom excellent relationship is required for successful implementation of NSITF programmes.“It is important to relate with NECA, which is the umbrella body of organized employers in the country. Since the employees’ compensation scheme is fully funded by the employers even though it is the employees that get the benefit directly, it is important to continually engage NECA. Overall, we know that the greater benefits of a fit worker go to the employers because a fitter employee gives the best of their capability to the employers. Therefore, businesses thrive when the employees can work and have a rest of mind that he or she will be taken care of when there is a workplace injury or his family will be compensated and looked after in case of workplace fatality. So, our relationships with NECA are significant in more ways than one.”

Agaka added that NSITF under his watch is moving very quickly to address the perceptions about the scheme by some sections of the critical stakeholders, saying, “We plan to have open and close interactions with the all the stakeholders. We have stated many times that the current management is open to suggestions on how re-direct the affairs of the Fund in order to achieve maximum impact.”
In his submission, Director General of NECA, Segun Oshinowo expressed satisfaction over the adoption of social dialogue in the implementation of the Employees Compensation Scheme (ECS).
He added: “I am happy that NSITF is relying on social dialogue approach rather than on the law that establishes Employees Compensation Scheme to collect remittances.”

While seeking extension of personal relationship between NECA and NSITF, Oshinowo urged Agaka to continue on this path saying, “there are so many things that officialdom may lack the capacity to resolve. We can always meet outside of official capacities to share information, strategize and plan on what is to be done to resolve thorny issues for the benefit of the country. This strategy has gone a long way in helping the NSITF over the last few years. I want to assure NSITF that we have not changed, we remain of who are and are ready to cooperate with NSITF to ensure success of its programmes.”

The NECA Scribe expressed the support of the organized employers for the institutionalization of corporate governance by the Acting-managing director into the operations of the NSITF.

While calling for early convocation of the interactive aspect of the Safe Workplace Intervention Programme (SWIP), Oshinowo explained that the session would provide employers who have complaints about the implementation of the ECA to the stakeholders to speedy resolution.

He said: “I think it is better to have the interactive session around July because delaying in order to have the whole SWIP will deny employers that want to ventilate their complaints. Since the interactive session addresses the quality of service that is rendered, if NSITF is unable to address the contributors, that might affect inflow of contribution. Meeting the Lagos group because a lot is happening there that will be interesting to the operations of the ECA.”

Commenting on the impasses the non-passage of the 2016 appropriation bill has caused, Oshinowo explained that such a development is an indictment on Nigerians as a people.

He said: “The inability of the National Assembly and executive to produce the 2016 budget is saying something silently loud about our country. I think it is shameful that there is no budget four months into the year. What kind of image are painting of our country outside? We need to urgently address our mind to a situation where our budget for the current year is unusually delayed. What stops us from getting our budget to be passed before the commencement of the budget year and the address those issues that have served as encumbrance to passing the budget annually?”