The House of
Representatives yesterday summoned the Minister of Finance, Kemi Adeosun and
her counterparts in Labour and Productivity, Chris Ngige and Budget an
d
National Planning, Udoma Udo Udoma.
The
invitation by the House adhoc committee was to answer questions on alleged
non-remittance of contributions by federal, states and local governments to the
Nigerian Social Insurance Trust Fund (NSITF). Also, the Accountant General of
the Federation (AGF), Ahmed Idris, was summoned to answer questions on workers
one per cent contribution from their monthly salaries.
According to
the committee Chairman, Chukwuka Onyema, the three tiers of governments, as
well as Ministries, Departments and Agencies (MDAs) had not made appreciable
contributions to the fund since 2010, when the NSITF Act came into being.Onyema
disclosed that the federal government agencies owe the NSITF N17 billion,
adding that the Nigerian Police is currently indebted to the tune of N16.2
billion.
He cited
other organs of government that had disregarded the provisions of the Act, as
the Nigerian National Petroleum Corporation (NNPC), the Central Bank of Nigeria
(CBN) and the Nigerian Police.He explained that it is illegal to violate the
law, which he said, exposes the vast majority of the workforce to uninsured and
uncovered risk, as well as other occupational hazards.
A
representative of the police told the committee that they were yet to be
registered in the scheme, despite that they had written to be enlisted.The
Managing Director of NSITF, Mr. Adebayo Somefun, said only Bauchi, Taraba and
Gombe states had indicated interest to make contributions, while other states,
including the Federal Capital Territory and its six area councils were yet to
key into it.
The Speaker
of the House, Yakubu Dogara, said the investigation was pursuant to a motion
brought on the floor of the House on the matter.He called on all organs of
government to key into the scheme, as the present administration “is fully
committed to the public sector reforms, including the sphere of public finance
management, to which series of policy and legislative interventions had been
instituted.
Somefun had
explained the benefits of the contributions to include encouragement of safety
in workplace and provision of compensation for death, occupational diseases and
injuries.
“The scheme
also reduces personal, physical and emotional suffering of employees and their
relatives, as well as minimises bureaucracy and bottlenecks in determining
liabilities,” he added.The NSITF boss stressed disclosed that Section 33 of the
Employee’s Compensation Act (ECA) provided that every employer shall, within
the first two years of the commencement of the Act; make a minimum monthly
contribution of 1.0 per cent of the total payroll into the fund.
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