The Nigeria Social Insurance Trust Fund says its investment philosophy is anchored on prudence, transparency, and low-risk options that safeguard workers\u2019 contributions.\n<\/p>\n
The Managing Director of the Fund, Mr Oluwaseun Faleye, disclosed this in an interview with the News Agency of Nigeria on Sunday in Abuja.\n<\/p>\n
NSITF is a government institution with a core function to implement the Employees\u2019 Compensation Scheme, which provides social insurance to employees for work-related injuries, diseases, disabilities, or death.\n<\/p>\n
It is funded by employers and also involves registering employers, collecting contributions, and ensuring employers provide safe working environments.<\/p>\n
Faleye said the Fund prioritises safety over profit, focusing mainly on secured, government-backed instruments like treasury bills and bonds.\n<\/p>\n
According to him, the Fund is protected for the purpose it was created to secure workers\u2019 welfare and ensure sustainability.\n<\/p>\n
\u201cThe law allows the NSITF to invest only in safe securities because of the nature of the Fund and the need to protect contributors\u2019 money.<\/p>\n
\u201cOur investment appetite is very low-risk. Prudence comes before profit in all our financial decisions.\n<\/p>\n
\u201cIn the past, we have done some real estate investments, but over the past years, our focus has remained on very safe, low-risk portfolios, ensuring that the fund is protected for the purpose it was created,\u201d he said.\n<\/p>\n
Faleye explained that the NSITF\u2019s investment decisions were guided by strict governance processes and board oversight to ensure accountability and transparency.\n<\/p>\n
He said every investment proposal undergoes a thorough review to ensure due process and safeguard the Fund\u2019s integrity.\n<\/p>\n
\u201cAccountability begins with how we manage the funds entrusted to us. These funds are meant to pay compensation when accidents occur,\u201d he said. <\/p>\n
He said all investments and major expenditures are presented to the board for approval, maintaining transparency at every stage of decision-making.\n<\/p>\n
Faleye said the Fund also focuses on prompt payment of claims, workplace safety promotion, and strengthening social protection systems for Nigerian workers.<\/p>\n
He added that efficiency in service delivery shows contributors that their funds are being used effectively to impact lives.\n<\/p>\n
Faleye said the NSITF operates under the Employees\u2019 Compensation Act (ECA) of 2010, which mandates employers to contribute one per cent of their total payroll to the Fund.\n<\/p>\n
He said compliance with the contribution requirement remains key to ensuring adequate funding for compensation and benefits under the ECS.\n<\/p>\n
\u201cThe one per cent contribution is sufficient if every employer complies. The goal is not to raise the rate but to expand coverage,\u201d he said.\n<\/p>\n
He said his vision is for all workers in both the private and public sectors to be fully covered under the scheme.\n<\/p>\n
Faleye commended President Bola Tinubu\u2019s administration for ensuring full compliance with ECS obligations for treasury-funded federal workers.\n<\/p>\n
\u201cWhen workers know their welfare is secure, they are motivated to give their best. That\u2019s the true essence of social protection,\u201d he said.<\/p>\n
He added that the Fund may, in the future, adjust contribution rates based on industry risk profiles through data-driven engagement with stakeholders.\n<\/p>\n
\u201cOur funding model is dynamic, but our focus remains on ensuring every Nigerian worker enjoys the full benefits of the Employees\u2019 Compensation Scheme,\u201d he said.
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