The House of Representatives has resolved to investigate the non-remittance of contributions into the Nigerian Social Insurance Trust Fund (NSITF) by government and private firms.
The House mandated a yet-to-be-constituted ad hoc committee to probe Federal, States and Local Governments, Parastatals, Public Corporations and Companies from 2010 to Date.
The decision followed the adoption of a motion moved by Zakaria Nyampa and 8 others.
The safety net contribution scheme according Nyampa was established by “Employees Compensation Act, 2010 which provides a guaranteed and adequate compensation for all employees or their dependents for any death, injury, disease or disability arising out of or in the course of employment, rehabilitation for employees with work related disabilities, establishment and maintenance of a Solvent Compensation Fund managed for the interest of the employees or employers, among others.”
He also explained that “employees are supposed to make a monthly contribution of 1.0 per cent of the total monthly payroll into the Fund and subsequently, payment will be passed on estimates of the employer’s payroll for the year, actual assessment or based on minimum assessment.”
The lawmaker added that private sector players have to a limited extent, been complying with the provisions of the Act, particularly, in view of Section 16(6)(d) of the Public Procurement Act, 2007 which makes it mandatory for bidders to have fulfilled all obligations to pay taxes, pensions and social security contributions.
He, however, noted most companies and public corporations have all failed to remit the mandatory contribution thereby exposing Nigerian workforce to uninsured and uncovered risks and occupational hazards and by extension, the large pool of workers cannot be compensated for injuries, mental stress.
The committee has 6 weeks to turn in report for further legislative actions.
