The Nigeria Social Insurance Trust Fund (NSITF) has started to adapt its Employees Compensation Scheme (ECS) to include Agency Banking Operators and Financial Technology businesses (FinTechs) in an effort to improve the safety and well-being of workers in the unorganised sector.

“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,” stated Mrs. Agbonma Okoroafor, Regional Manager, NSITF, Lagos Mainland, during a stakeholders’ sensitisation session on the implementation of the ECS in the FINTECH Industry organised by NSITF with the theme “Enhancing Agency Banking and Mobile Money Operations through Employees Compensation Scheme (ECS).”

“The ECS is one of the most important tools we use at NSITF to fulfil our commitment to protecting Nigerian workers.”

In her explanation of the advantages of ECS for the Agency Banking and Fintech sectors, Mrs. Chikamadu Onyewuchi, General Manager, Informal Sector Department, NSITF, stated that it would boost employee security and productivity, make jobs more appealing, retain talent, promote economic growth, and boost employee loyalty and morale, among other things.

Because they operate in distant or high-risk regions, agency banking operators are particularly vulnerable to physical danger, financial loss, and occupational hazards, according to Senator Mukhail Adetokunbo Abiru, Chairman of the Senate Committee on Banking, Insurance, and Other Financial Institutions.

He claims that this make it necessary for them to have insurance.

However, in order to match international standards, the Chairman, who was represented by Professor of Finance and Capital Market Uche Uwaleke, urged NSITF to step up ECS sensitisation in the unorganised sector.

Therefore, considering the size of Nigeria’s informal economy, the NSITF can further broaden its coverage by adding additional workers in the informal sector in order to conform to international norms.More workers in a variety of sectors will also be able to take use of this essential protection if public awareness is raised and ECS compliance is improved.

Given this, I applaud the decision to allow agency banking, which has emerged as a key component of financial inclusion in Nigeria and serves to close the gap between underserved or unbanked communities and formal financial institutions.