Fraudulent claims hindering employee compensation scheme — NSITF MD

The Managing Director of the Nigeria Social Insurance Trust Fund (NSITF), Barrister Oluwaseun Faleye, has stressed that fraudulent claims are a major challenge facing the smooth operation of the Employee Compensation Scheme (ECS).

Barrister Faleye, who spoke at the West Africa Technical Workshop of the International Social Security Association (ISSA), held in Conakry, Guinea, addressed the topic Strategic Role of Actuarial Work in Strengthening Social Insurance Delivery at NSITF. He lamented that the falsification of claims exposes the Fund to operational risk.

He also stated that partial digitisation often affects turnaround time and that limited partnerships with other social security institutions are among the factors militating against an effective social security system.

The NSITF Managing Director decried the low enrolment in the Fund’s flagship scheme, the Employee Compensation Scheme, which he stressed is designed to grant relief to workers who suffer workplace injuries or death.

According to him, the unstructured informal economic sector, which makes up about 80% of Nigeria’s economy, limits enrolment and diminishes the safety nets for those enrolled.

A statement made available to journalists in Abuja revealed that NSITF’s attendance at the gathering signifies Nigeria’s return to the ISSA platform and the international social security scene. Industrial watchers opined that this move brings significant benefits for the country.

The gathering provides Nigeria with the opportunity to keep abreast of international developments and global best practices in the social security sector, enabling the Fund to be better positioned for growth and sustainability.

The workshop, themed Actuarial Work for Good Governance and Financial Resilience of Social Security in West Africa, in the words of the NSITF MD, further underscores Nigeria’s concerted effort to reconnect with the international community through ISSA. This alignment is intended to reposition the Fund through the required guidelines, particularly in valuations that ensure the sustainability of the scheme and good governance.

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