The Nigeria Social Insurance Trust Fund says its investment philosophy is anchored on prudence, transparency, and low-risk options that safeguard workers’ contributions.
The Managing Director of the Fund, Mr Oluwaseun Faleye, disclosed this in an interview with the News Agency of Nigeria on Sunday in Abuja.
NSITF is a government institution with a core function to implement the Employees’ Compensation Scheme, which provides social insurance to employees for work-related injuries, diseases, disabilities, or death.
It is funded by employers and also involves registering employers, collecting contributions, and ensuring employers provide safe working environments.
Faleye said the Fund prioritises safety over profit, focusing mainly on secured, government-backed instruments like treasury bills and bonds.
According to him, the Fund is protected for the purpose it was created to secure workers’ welfare and ensure sustainability.
“The law allows the NSITF to invest only in safe securities because of the nature of the Fund and the need to protect contributors’ money.
“Our investment appetite is very low-risk. Prudence comes before profit in all our financial decisions.
“In the past, we have done some real estate investments, but over the past years, our focus has remained on very safe, low-risk portfolios, ensuring that the fund is protected for the purpose it was created,” he said.
Faleye explained that the NSITF’s investment decisions were guided by strict governance processes and board oversight to ensure accountability and transparency.
He said every investment proposal undergoes a thorough review to ensure due process and safeguard the Fund’s integrity.
“Accountability begins with how we manage the funds entrusted to us. These funds are meant to pay compensation when accidents occur,” he said.
He said all investments and major expenditures are presented to the board for approval, maintaining transparency at every stage of decision-making.
Faleye said the Fund also focuses on prompt payment of claims, workplace safety promotion, and strengthening social protection systems for Nigerian workers.
He added that efficiency in service delivery shows contributors that their funds are being used effectively to impact lives.
Faleye said the NSITF operates under the Employees’ Compensation Act (ECA) of 2010, which mandates employers to contribute one per cent of their total payroll to the Fund.
He said compliance with the contribution requirement remains key to ensuring adequate funding for compensation and benefits under the ECS.
“The one per cent contribution is sufficient if every employer complies. The goal is not to raise the rate but to expand coverage,” he said.
He said his vision is for all workers in both the private and public sectors to be fully covered under the scheme.
Faleye commended President Bola Tinubu’s administration for ensuring full compliance with ECS obligations for treasury-funded federal workers.
“When workers know their welfare is secure, they are motivated to give their best. That’s the true essence of social protection,” he said.
He added that the Fund may, in the future, adjust contribution rates based on industry risk profiles through data-driven engagement with stakeholders.
“Our funding model is dynamic, but our focus remains on ensuring every Nigerian worker enjoys the full benefits of the Employees’ Compensation Scheme,” he said.
(NAN)
