NSITF Expands Compensation Scheme To Fintech, Agency Banking

The Nigeria Social Insurance Trust Fund (NSITF) has extended its Employees’ Compensation Scheme (ECS) to cover the rapidly growing fintech and agency banking sectors.

The initiative was recognised as a proactive move by the national President of the National Union of Banks, Insurance and Financial Institutions Employees (NUBIFIE), Comrade Anthony Abakpa.

At the scheme sensitisation workshop in Kano, he stressed the potential benefits of the collaboration between NSITF and stakeholders in mobile money and fintech.

In a statement by NSITF general manager, Corporate Affairs, Nwachukwu, Godson, Abakpa pointed out that the inclusion of these sectors under the ECS framework would promote a safer and more supportive environment for employees across Nigeria.

He encouraged the NSITF to adapt to the unique needs of fintech and agency banking through digitised registration and management processes.

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Abakpa suggested the use of digital platforms, including online portals and mobile apps, to facilitate seamless onboarding for employers and employees in the informal sector.

In addition, he recommended the development of customised solutions that cater to the flexible structures within the fintech industry, such that it tailor towards contribution plans and inclusive policies with incentives like tax breaks for registered employers.

NSITF’s managing director, Oluwaseun Faleye, represented by Chika Onyewuchi, the general manager of the Informal Sector Department, outlined the objectives of the ECS expansion.

Onyewuchi stated that the initiative not only contributes to financial inclusion but also fosters a more secure working environment for fintech agents.

She explained that the ECS coverage protects agents in case of work-related accidents, encouraging skilled workers to join the industry and broadening access to financial services in remote, underserved areas.

Onyewuchi further noted the scheme’s benefits, including legal liability protection for agency banking providers.

By enrolling in the ECS, she added that the providers reduce their exposure to legal risks associated with workplace accidents and illnesses, as the NSITF assumes responsibility for handling claims.

She 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.