You are currently viewing NUBIFIE Lauds NSITF for Expanding Employees’ Compensation Scheme to Fintech and Agency Banking

NUBIFIE Lauds NSITF for Expanding Employees’ Compensation Scheme to Fintech and Agency Banking

…NSITF MD, Seun Faleye, Highlights Financial Inclusion Goals

The National Union of Banks, Insurance and Financial Institutions Employees (NUBIFIE) has commended the Nigeria Social Insurance Trust Fund (NSITF) for its proactive measures in extending the Employees’ Compensation Scheme (ECS) to Nigeria’s burgeoning Agency Banking and Fintech sectors.

Speaking at a sensitization workshop for Banking and Fintech stakeholders held over the weekend in Kano State, NUBIFIE’s National President, Comrade Anthony Abakpa, expressed enthusiasm about the expansion, stating that a strengthened collaboration between NSITF and mobile money and Fintech stakeholders will foster a safer and more supportive financial service environment for employees across Nigeria.

According to a statement released by NSITF’s General Manager of Corporate Affairs, Nwachukwu Godson, the NUBIFIE president described the ECS as a cornerstone of social security, embodying one of nine key contingencies in the International Labour Organisation’s (ILO) social security framework.

Abakpa highlighted NSITF’s notable achievements in ECS implementation, noting that the Fund’s entry into the Fintech sector was both timely and strategic. He urged workshop participants to embrace the scheme, which he believes is set to offer considerable benefits in the fast-evolving Fintech and agency banking landscape.

“NSITF must prioritize digital platforms for streamlined onboarding and ensure the registration process is as accessible as possible, especially for Fintech employers and informal sector players,” Abakpa suggested. He added that NSITF could enhance ECS uptake by providing digital tools like online registration portals and mobile apps to simplify employers’ ability to manage contributions.

The union leader also proposed customized solutions to cater specifically to the Fintech sector, including flexible contribution plans, bespoke communication, and support services tailored to the unique characteristics of Fintech businesses. “Inclusive policies and programs should be developed to incentivize participation, such as tax breaks, subsidies, or grants for registered employers,” he advised.

Abakpa underscored the importance of creating a support system through collaboration with sectoral unions, industry associations, government agencies, and financial institutions. He noted that fostering coordination among these entities would facilitate a positive ecosystem for registration and compliance.

While acknowledging the strides NSITF has made in disbursing compensations to employees, Abakpa pointed out existing challenges, including delays, bureaucratic bottlenecks, and inadequate communication. However, he expressed confidence that the Fund’s new leadership was actively addressing these issues.

Leave a Reply