In a bid to enhance security and welfare of workers in the informal sector, the Nigeria Social Insurance Trust Fund (NSITF) has began moves to accommodate Agency Banking Operators and Financial Technology companies (FinTechs) in its Employees Compensation Scheme (ECS).
Speaking at a stakeholders' sensitization session on the implementation of the ECS in the FINTECH Industry organized by NSITF, themed: "Enhancing Agency Banking and Mobile Money Operations through Employees Compensation Scheme (ECS)", The Regional Manager, NSITF, Lagos Mainland Mrs. Agbonma Okoroafor said: "With the rapid growth of technology-driven financial services, there is an increased responsibility on all stakeholders to ensure the protection and welfare of our employees who are the backbone of our industry.
"At NSITF, we are committed to protecting Nigerian workers, and the ECS is one of the key tools we use to achieve this."
Explaining the benefits of ECS in the Agency Banking and Fintechs industries, the General Manager, Informal Sector Department, NSITF, Mrs. Chikamadu Onyewuchi, noted that it would enhance workers' security and productivity, increase attractiveness of roles, talent retention, drive economic development , improve morale and loyalty of staff among other things.
The Chairman, Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Mukhail Adetokunbo Abiru, said that agency banking operators face unique risks, including exposure to physical harm, financial loss, and occupational hazards, due to operating in remote or high-risk areas.
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According to him these create the need that they are insured under the ECS.
Represented by Professor of Finance and Capital market, Uche Uwaleke, the Chairman, however called on NSITF to intensify ECS sensitization in the informal sector to meet international standards.
"Therefore, in order to align with international standards, the NSITF can further expand its coverage by including more informal sector workers, a move that is crucial given the large informal economy in Nigeria. "Additionally, increasing public awareness and improving compliance with the ECS will help ensure that more workers across various industries benefit from this vital protection.
"It is against this backdrop that I welcome the move to accommodate Agency banking which has become a cornerstone of financial inclusion in Nigeria, bridging the gap between formal financial institutions and underserved or unbanked populations".
