By Favour Nnabugwu
1% contribution is insurance premium, not IGR- NSITF tells NASS
* Faults NASS on remittance of N3.8bn
The Nigeria Social Insurance Trust Fund (NSITF) has made it clear to the House of Representatives Adhoc Committee on Unclaimed Funds that the 1% contribution to the Trust Fund is insurance premium and Internally Generated Revenue, IGR.
NSITF faulted the House that Fund owes the Federal Government in respect of non-remittance of Operating Surplus Funds between 2013-2020.
The agency explained that being a social security agency which is currently majorly funded from contributions of private sector employers to procure cover on behalf of their employees can not be described as revenue.
The General Manager, Corporate Affairs.Ijeoma Okoronkwo, in a statement in Abuja, said, “The amount standing to the credit of the Employers Compensation Fund Account, does not fall under the Operating Surplus , intended by the Section 22 of the Fiscal Responsibility Act.
“NSITF is a Non Treasury Funded Parastatal and the 1% contribution can be likened to Insurance premium and not IGR.”
Okoronkwo said the balance in the Fund account is meant to be invested in line with section 32(e) of the Employee Compensation Act 2010, in order to fulfill its obligations of payment of death claim, Medical compensation and rehabilitation expenses as they occur; and not meant to be remitted to the Consolidated Revenue Fund of the Federation.
The fund thanked the National Assembly committee members for understanding in this regards, the statement added.