The Federal Government, on Wednesday, in Abuja, approved the second phase of the electronic Nigeria Social Insurance Trust Fund, which will enable concessionaires to upgrade the infrastructure at the sum of N15bn.
Minister of Labour and Employment, Dr Chris Ngige, disclosed this to State House Correspondents at this week’s Federal Executive Council meeting, presided over by Vice President Yemi Osinbajo at the Council Chambers of the Presidential Villa, Abuja.
Ngige also revealed that the council approved the amendment of outdated labour laws to meet globally accepted standards prescribed by the International Labour Organisation.
He said, “This memo is for the electronic NSITF. Nigeria now operates the old Workmen Compensation Act, now Employee Compensation Act 2010.
“Therefore, we are trying to align the contributions of NSITF to make it fraud-free. People should be able to easily make workers’ contributions, even from the comfort of their offices, and generate certificates.
“You know that the ECA makes it mandatory for all employers to insure their workers through a token contribution of a per cent of their emolument to the social trust fund of the NSITF.
“And that is the fund with which if you have an accident or disease condition or debt or disability in the course of work, you can make a claim, like an insurance claim.”
He said Wednesday’s approval is meant to refine the process to avoid revenue losses to the labour-employing organisations.
“Now is for a concessionaire to come and do infrastructure and upgrade it in the neighbourhood of N15bn and then after that, it will take some percentage on incremental revenue that accrued. It will make the form more liquid now and we’ll be able to do our functions appropriately.
“So, the council gave the go ahead today and approved it and directed ICRC who is the body authorised by law to enter into such a concession, to continue the process and liaise with the Office of the Attorney-General of the Federation,” Ngige said.
Revealing the legislative upgrades, he said, “The country’s labour laws, as presently being operated, are really obsolete. And the ILO has pointed out that we need to bring our laws current with international labour standards.
“It is a long journey started in 2001 by a previous administration, and at one point, the five bills were sent to the National Assembly for enactment into law in 2007/2008 but only one came out.”
He said the five bills include: the labour standards bill to replace the Trade Union Act 2004 and the collective labour relations bill, which encompassed a portion of the Trade Union Act, Trade Disputes Act 2004, Trade Dispute Essential Services Act and the Trade Unions International Affiliations Act.
Also on the list is a bill regarding Occupational Safety and Health which will replace the old Factories Act with which Nigeria operates its Operational Safety and Health System.
Another bill, the Labour Institutional Bills, covers all the institutions under labour relations and activities, such as the industrial arbitration panel, which is not a recognised agency.
“So, the essence is to make it now a commission and the Registrar of Trade Unions, whose function is like the registrar of federal governmental institutions.
“So that trade union registrar was to be excised again and made autonomous to be independent of the ministry.
“Again, we have the National Labour Advisory Council, which is a body that we set up on recommendation of ILO principles at work. We want it to be a council. So, these are what the bills we are sending now want to do.”
He said the new bills would be transmitted to the Ministry of Justice, which will create a legal draft and have it transmitted to the National Assembly for public hearing and subsequent assent by the president.
