In Defence of  Social Mandate of  Nigerian Social Insurance Trust Fund

Dr Emmanuel Ulayi

Nigerian Social Insurance Trust Fund (NSITF) started over 50 years ago providing the Provident Fund Scheme, then the Social Insurance Scheme and now implementing the Employees’ Compensation Scheme (ECS).

Recently, there has been many discussions emphasizing on the need for more social safety nets to be set up for the vulnerable and more coverage to the majority of citizens.

Very recently, Senator Ned Nwoko, wrote to the President proposing that a Social security commission should be established to replace the Humanitarian Ministry.

In his letter titled ‘’Re imagining Nigeria’s Social Safety Net: A Call to Replace the Ministry of Humanitarian Affairs with a National Social Security Agency Under the Office of the President’ the Delta North Senatorial District Senator proposed the creation of the National Social Security Agency that would guarantee the right and dignity of Nigeria’s most vulnerable citizens.

He also stated “this creation would help align our nation with global standards in the realistic and far-reaching implementation of fundamental principles of livelihood, exemplified by equity, enterprise, and engagement”.

However, the NSITF mandate has already been established to take on these responsibilities and many argue that establishing the Ministry of Humanitarian Affairs may have been unnecessary even as that Ministry was saddled with several alleged misappropriation stories and unresolved issues of a social register for the vulnerable.

The urgency required as stated so eloquently by the Distinguished Senator, is what drives the United States Social Security Programme which over 72 million Americans will collect benefits from Social Security in 2024.

Their model is run as a federal programme providing retirement benefits and disability income to qualified individuals and their spouses, children, and survivors.

It is also robust enough to accommodate people who can’t work due to a disability and surviving spouses and children who may also be eligible for benefits if they meet certain requirements.

My position is that there is really no need to waste resources that are scarce and dispel more energy in setting up another framework when the NSITF already has the mandate and existing structure that is accountable enough to drive efficiency in targeting the most vulnerable.

These developments that reflect the need for more inclusion to implement Social Security Benefits for the aged, unemployed, child welfare and the physically challenged has already been addressed under Section 71 of the Pension Reform Act, 2004 with NSITF given the responsibility to provide “every contributing citizen Social Security Insurance Services other than Pension in accordance with the NSITF Act, 1993”.

A bill is already in the National Assembly to amend the provisions of the NSITF Act for this.

What we should clamour for is an expedition of the NSITF Act amendment bill into law to now begin to address this urgent call to provide basic social security services to all Nigerians.

The Director General of the World Trade Organisation (WTO), Dr Ngozi Okonjo-Iweala, in making her Keynote ” A new social Contract for Nigeria’s Future”, delivered at the opening of the Annual General Conference (AGC) 2024 of Nigerian Bar Association (NBA) just this week shared the need for a new social contract to set the country on a steady economic growth and development path, rather than an episodic growth path. Okonjo-Iweala’s speech reflects the importance of tackling present and emerging challenges while ensuring that the vulnerable are protected.

She further explained that her context of social contract would also involve pooling resources to provide the public goods needed and support for those affected by adverse shocks.

She proposes that the basic parameters for security, macroeconomic, social stability and the enabling environment for future dynamism and growth of our country should be institutionalized, enshrined in law or even part of our Constitution.

To this end, l see her position as reflective of the NSTIF social contract to protect the vulnerable and the poor in dignity under the National social security safety net.

This article is in defence of this social mandate of the NSITF which we all should support!