Confused about NSITF? Here's a simple guide to registration, payment and certificates
The Nigeria Social Insurance Trust Fund (NSITF) is a government agency that provides social security services to employees in the private sector. It ensures workers are compensated for work-related injuries, disabilities, or losses. If you are an employer, register your business, make payments, and obtain the NSITF compliance certificate with ease.
Source: UGC
TABLE OF CONTENTS
- Key takeaways
- What does NSITF mean, and what does it do?
- Who should register for NSITF?
- NSITF registration procedure
- Who is the CEO of NSITF?
- What is the minimum number of employees for NSITF registration?
- What documents are required to obtain the NSITF compliance certificate?
- How much is the NSITF contribution rate?
- How long does it take to get the NSITF compliance certificate after payment?
- Is the employee paying anything for NSITF?
- What benefits does NSITF provide?
- What happens if I don’t get the NSITF certificate but continue doing business?
- What is the official address of the NSITF?
- How many branches does NSITF have?
- How can I verify the authenticity of an NSITF compliance certificate?
Key takeaways
- NSITF is the agency administering the Employees’ Compensation Scheme (ECS) for work-related injury, disease, disability, or death arising from employment.
- Every eligible employer must register, make the required payments (typically 1% of payroll), and secure the compliance certificate to show legal compliance.
- Failure to register, make payments, or obtain the certificate may lead to serious consequences, including being blocked from bidding for government contracts, exposure to penalties, and vulnerability to employee claims.
What does NSITF mean, and what does it do?
Source: UGC
The Nigeria Social Insurance Trust Fund (NSITF) is a government body set up to administer what is now called the Employees’ Compensation Scheme (ECS). The body’s mandate and objectives include:
- To provide fair and adequate compensation to workers in case of death, injury, disease, or disability in the course of employment.
- To rehabilitate employees who suffer work-related injuries and to prevent workplace disabilities via safety oversight.
- To ensure employers comply with the legislation and contribute to the scheme.
Who should register for NSITF?
NSITF registration ensures employees are protected under the Employee Compensation Scheme. If you are an employer, understanding your eligibility is essential. Here is how to know whether your business is required to register or not.
- Every employer of labour in the private sector registered under the Companies and Allied Matters Act (CAMA), either as a company or partnership, or a sole business with a workforce of not less than five employees, must register.
- Public service employees (federal, state, local) may be exempt if they already have a pension or similar scheme.
NSITF registration procedure
Source: UGC
Registering with the NSITF is a straightforward process that involves completing the registration form, submitting required documents, and making the initial contribution. Here is a simple step-by-step guide to help you complete the process successfully.
- Confirm your eligibility – All employers of labour, including limited liability companies, partnerships, and sole proprietorships with five or more employees.
- Obtain the registration forms – Important forms include the Employer Registration Form (Form ECS RE01) and the Employer Schedule of Payments (Form ECS RE03). You can download the forms from the NSITF official website or get them at the nearest NSITF office.
- Complete the forms – Accurately fill out the forms with the required information, such as the company profile, nature of business, number of employees, and contact person. Also, attach documents, including the Certificate of Incorporation (CAC certificate), Tax Identification Number (TIN), evidence of current Tax Clearance Certificate (TCC), payroll schedule showing staff names, designations, and salaries, and valid means of identification of company directors.
- Submit the application – Submit the completed forms and documents to the nearest NSITF office. The application will be reviewed for completeness and compliance, and you will be given an acknowledgement slip.
- Assessment of contribution – NSITF will assess your contribution liability based on your total annual payroll. Usually, the standard contribution rate is 1% of total payroll. Note that it is only the employer who pays the amount.
- Make payment – Once the assessment is completed, NSITF will issue a payment advice, indicating the amount of money payable. You can pay the amount through NSITF-designated bank accounts or on the NSITF e-platform. After payment, ensure you obtain a payment receipt or teller copy.
- Receive registration number – NSITF will issue you a registration number or employer code. The code identifies your company in the NSITF database, and it is a confirmation that you are registered under the Employees’ Compensation Scheme (ECS).
- Apply for the NSITF compliance certificate – Write a formal application letter on your company’s letterhead requesting the certificate. Accompany the letter with the NSITF payment receipt, CAC certificate, completed forms ECS RE01 and ECS RE03, and the current Tax Clearance Certificate.
- Annual renewal – The compliance certificate is valid for one year and must be renewed annually. Keep up with monthly or annual contributions to maintain compliance.
Who is the CEO of NSITF?
Source: UGC
The current chief executive officer of the Nigeria Social Insurance Trust Fund (NSITF) is Oluwaseun Faleye. He was appointed by President Bola Ahmed Tinubu in 2024 to lead the agency and oversee the effective administration of the Employee Compensation Scheme across Nigeria.
What is the minimum number of employees for NSITF registration?
Every employer with at least five employees is required to register with the NSITF. The Employee Compensation Act (ECA) makes it mandatory for all employers—whether in the public or private sector—to register and remit contributions on behalf of their workers.
What documents are required to obtain the NSITF compliance certificate?
To obtain the certificate, employers usually need to submit:
- Evidence of registration with NSITF
- Proof of payment for the current year’s contribution
- List of employees and payroll summary
- CAC registration documents
How much is the NSITF contribution rate?
The NSITF contribution rate is 1% of the total monthly payroll of all employees. This amount is paid solely by the employer and covers compensation for work-related injuries, disabilities, diseases, or deaths.
How long does it take to get the NSITF compliance certificate after payment?
Source: UGC
Once payment and all required documentation are submitted, it typically takes 3 to 5 working days to process and issue the NSITF compliance certificate, provided there are no discrepancies in the employer’s records.
Is the employee paying anything for NSITF?
The employee does not contribute to the NSITF Employee Compensation Scheme. It is the employer who bears the full cost of the 1% contribution as part of their statutory responsibility.
What benefits does NSITF provide?
The NSITF provides financial and medical support to employees in cases of:
- Work-related injuries or disabilities
- Occupational diseases
- Death resulting from work accidents
- Rehabilitation and retraining for affected employees
What happens if I don’t get the NSITF certificate but continue doing business?
Failure to register, contribute, or obtain the NSITF compliance certificate can lead to serious consequences, including:
- Being barred from bidding for or renewing government contracts.
- Exposure to penalties, fines, or sanctions under the Employee Compensation Act.
- Legal and financial liability if a worker suffers injury or death on the job.
What is the official address of the NSITF?
You can visit its headquarters office on Plot 794, Mohammadu Buhari Way, Central Business Area, P.M.B. 446, Mohammadu Buhari Way, Garki, Abuja, Nigeria. Alternatively, you get assistance from its various branches spread across the country.
How many branches does NSITF have?
The NSITF operates a wide network across the country, consisting of 13 regional offices and 62 branch offices nationwide. This broad presence ensures that employers and employees in all states have easy access to NSITF services and support.
How can I verify the authenticity of an NSITF compliance certificate?
You can verify a certificate’s authenticity by searching the certificate number on the verification section on the official NSITF website or contacting the nearest NSITF regional office with the certificate number.
The NSITF registration process is straightforward when you understand each step. It ensures employers comply with the Employees’ Compensation Act and protect their workers from job-related risks. By completing registration, making payments, and obtaining the compliance certificate, your business stays compliant and credible.
Legit.ng recently published an informative article about the Tax Identification Number (TIN). It is a unique number assigned to individuals and businesses for tax purposes in Nigeria. It is used by the Federal Inland Revenue Service (FIRS) to track tax payments and compliance.
Every taxpayer must have a TIN to conduct official financial or business transactions legally. You can apply for a TIN online through the Joint Tax Board portal, or visit a FIRS office with a valid ID and other required documents. Read this article for a comprehensive guide on how to get a TIN.
Proofreading by Kola Muhammed, copy editor at Legit.ng.
Source: Legit.ng
