Photo caption: A cross section of participants at the sensitization workshop for stakeholders in agency banking and FINTECH organised by the NSITF at the Islamic Forum of Nigeria Conference Hall, Kano.

The Nigeria Social Insurance Trust Fund (NSITF) has been commended for taking proactive steps to expand the Employees’ Compensation Scheme, ECS to the Agency Banking and Fintech industries.

The National President of the National Union of Banks, Insurance and Financial Institutions Employees (NUBIFIE) Comrade Anthony Abakpa made the commendation in Kano while speaking at a sensitization workshop for stakeholders in the Agency Banking and Fintech industries organized by the NSITF over the weekend in the ancient commercial city.

According to the union leader, a growing collaboration between the NSITF and stakeholders in the mobile money and FINTECH industry will not only provide a networking platform but also a safer and supportive financial service environment for employees across Nigeria. He described the ECS as one of the nine contingencies making up the social security programmes enunciated by the International Labour Organisation (ILO), equally observing that though the NSITF has made remarkable progress in implementing the scheme across the years, the foray into the Fintech industry was strategic and came at the nick of time. He therefore urged participants who thronged the Islamic Forum of Nigeria Conference Hall, Kano, to embrace the scheme.

He further stated that for a seamless implementation of the ECS in the fast growing Fintech and agency banking sector, the NSITF must also brace up with the digitization of its processes and procedures.

According to him, “To get the informal sector employees and employers especially the fintech industry, to register with the Fund, the NSITF must utilize digital platforms (Digital onboarding) and tools to simplify the registration process for informal sector employers. This can include online registration portals and mobile(apps) applications that make it easy for employers to register and manage the contributions.”

He suggested “the development of tailored solutions that
address the specific needs and challenges of the fintech industry, which include flexible contribution plans, customized communication, and support services that cater to the unique characteristics of fintech businesses.

“Inclusive Policies and Programs—Implement inclusive policies and programs that encourage the participation of informal sector employers. This can involve providing incentives such as tax breaks, subsidies, or grants to employers who register with the Fund.

“Financial Cooperatives—Promote the formation of financial cooperatives among informal sector employers, mutual support, making it easier for members to comply with the Fund’s requirements.

“Fostering coordination and collaboration between NSITF and other relevant stakeholders such as Sectoral Unions, industry associations, government agencies, and financial institutions. This can help create a supportive ecosystem that encourages registration and compliance.”

He also stated that the ultimate measure of the NSITF’s effectiveness lies in its ability to disburse benefits to eligible beneficiaries in a timely and efficient manner. While affirming that the NSITF has successfully provided compensation to many workers, “cases of delays, bureaucratic red tape, as well as inadequate communication have impeded the process, leading to dissatisfaction. He, however, expressed happiness that the new management of the Fund was already addressing the situation.

Earlier while presenting the keynote address to the gathering, the Managing Director of the NSITF, Oluwaseun Faleye who was represented by the General Manager, Informal Sector Department of the agency, Chika Onyewuchi said the programme synched with the cardinal agenda of the new administration of the Fund to develop peculiar programmes that can break new grounds in the informal sector which hosts the majority of Nigeria’s active work life. She asserted that the bold initiative of the NSITF was in furtherance of its contributions to financial inclusion.

The NSITF boss said that-“By providing safer , more secure environment for agents , ECA 2010 indirectly supports Nigeria’s financial inclusion goals. The protection it offers can encourage more people to become agents in the Fintech and help banking providers expend their reach to the underserved areas in the remote parts of the nation.

“With the ECS, agency banking becomes a more attractive career option, capable of attracting skilled workers, assured that they will be covered in case of work related accidents, injury or health issues. This assists financial institutions draw a stable workforce of competent agents.

According to Nwachukwu Godson, General Manager, Corporate Affairs, in a statement sent to Nationwide Reports, Faleye, while discussing the numerous benefits of the scheme to the industries’ stakeholders, said, “Many banking agents travel frequently to provide services to customers in various locations. The ECS covers commuting accidents, ensuring that agents who experience accidents while travelling to or from their service locations receive compensation and support.

“By enrolling in the ECS agency banking providers can reduce their legal liability related to workplace accidents and illnesses. The scheme allows employers to transfer risk to the NSITF, which handles compensation claims and payouts, thereby saving banks and agents from potential legal battles and associated costs.”

He argued that to mitigate financial vulnerability, low productivity and bridge the gap between the formal and informal sector, the ECS which narrows inequality through social protection must be embraced by all players in the informal sector.

Other stakeholders at the event included the Kano State Chairman of the Nigeria Labour Congress, Anwali Yaksse, General Secretary NUBIFIE, Mohammed Sheik, Chairman of AMBO, Odetunde Lukman and AMON President, Salihu Umar as well as representatives from the Agent Banking and FINTECH including Zenith Bank, Fidelity, ECO, GTB, Moniepoint as well as Point of Sales Operators among others.