Just in: FG Directs MDAs To Commence 1% Mandatory Employees’ Compensation Contribution


The Federal Government has directed all Ministries, Departments and Agencies (MDAs) to commence the mandatory contributions of 1% of the emoluments of all public servants to the Employees’ Compensation Scheme of the Nigeria Social Insurance Trust Fund (NSITF)

The directive was contained in a circular dated September 22, 2023, signed by the Secretary to the Government of the Federation, Chief George Akume and copied to all arms of the Federal Government.

Recall that the Extraordinary Session of the Federal Executive Council under President Buhari had on Monday, May 15, 2023, given approval for statutory 1% e-deduction from the total emoluments of the Federal Public Servants as Employee Compensation contributions, with effect from January 2023

According to the circular, the Minister of Finance was directed to “deduct the contributions from source and remit same to the NSITF for the payment of claims and compensations to deserving beneficiaries for death, injury, disease or disability sustained in the course of duty as provided in the Employees’ Compensation Act, 2010, Act No. 13.”

According to a statement made available to newsmen by NSITF’s General Manager, Corporate Affairs, Nwachukwu Godson on Sunday in Abuja, the circular had further directed all MDAs to ensure strict compliance with the directive.

Managing Director of the NSITF, Barr. Maureen Allagoa eulogised the bold decision of the Federal Government, saying the Fund has further been energised to deliver on its responsibilities to the Nigerian workers.

She said, “Yesterday, we received a circular from the office of the Secretary to the Government of the Federation, making it compulsory for 1% contribution from the total emoluments of public servants to be compulsorily remitted to the NSITF in view of the Employees’ Compensation Act.

“This is a giant plus to our charge as the nation’s core social security agency as it will give a big push to the momentum of our operations in their ramifications.

“There shall be no excuses on our own part in fully keying into the Renewed Hope Agenda of the Federal Government. The effort is collective and we shall not rest on our oars until we reach out to all Nigerian workers whether in the formal or informal sector.”

Allagoa added, “We have gone round and observed some challenges which will be tackled forthwith. Staff should feel comfortable, your welfare is key because once we get the staff welfare correct, everything falls in place in terms of performance.

“Earlier in the year, some buses were procured and sent to offices in each region to ease operations. And recently, we received another batch of ten buses for distribution while the rest will come at the end of the year.

“To further boost morale, management is putting together a reward package for those staff who personally and collectively distinguish themselves in the performance of duty. The measure will spur others on.

“Besides, we are working out a new three-tier structure for MPR. First is the monthly online engagement with branch and regional managers to keep track of their performance, then the quarterly regional MPR – where two or three regions will be brought together at a centre with delegates sent from the head office and finally, the biannual MPR.” She equally commended the staff of the Abuj a region and the branch for their sterling performance in meeting up with their targets.


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