NSITF Aims to Bolster Security in Agency Banking and Fintech through Employee Compensation Scheme

To strengthen the security and welfare of workers in Nigeria’s informal sector, the Nigeria Social Insurance Trust Fund (NSITF) has initiated steps to include Agency Banking Operators and Financial Technology (FinTech) companies in its Employees Compensation Scheme (ECS).

At a recent stakeholders’ sensitization session focused on the ECS in the fintech industry, themed “Enhancing Agency Banking and Mobile Money Operations through Employees Compensation Scheme (ECS),” NSITF Lagos Mainland Regional Manager, Mrs. Agbonma Okoroafor, emphasized the need to safeguard employees within the rapidly expanding tech-driven financial services 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,” she said. “At NSITF, we are committed to protecting Nigerian workers, and the ECS is one of the key tools we use to achieve this.”

Highlighting the ECS benefits for agency banking and fintech, Mrs. Chikamadu Onyewuchi, General Manager of NSITF’s Informal Sector Department, noted that it would boost worker security, increase role attractiveness, improve talent retention, and drive overall economic development. She added that ECS coverage also strengthens morale and loyalty among employees, enhancing productivity across the sector.

Senator Mukhail Adetokunbo Abiru, Chairman of the Senate Committee on Banking, Insurance, and Other Financial Institutions, noted that agency banking operators face unique challenges, including exposure to physical harm and financial risks, particularly when operating in remote or high-risk areas. “These risks create the need for insurance under the ECS,” he said.

Represented by Professor Uche Uwaleke, a Finance and Capital Market expert, Senator Abiru urged NSITF to expand ECS sensitization efforts within the informal sector to meet international standards. “In order to align with international standards, the NSITF can further expand its coverage by including more informal sector workers, a crucial move given Nigeria’s large informal economy. Additionally, increasing public awareness and improving ECS compliance will ensure more workers across industries benefit from this essential protection,” he added.

Senator Abiru welcomed NSITF’s move to extend ECS coverage to agency banking, which has become pivotal to financial inclusion by bridging the gap between formal financial institutions and underserved or unbanked communities in Nigeria.