Wednesday, 28 March 2012


MANAGEMENT of the Nigeria Social Insurance Trust Fund, NSITF, has called on employers in the country to, without delay, comply with the provisions of the Employees’ Compensation Act, ECA, saying it will not hesitate to apply the necessary sanctions as provided by the Act on any recalcitrant employer. In a statement, the fund drew the attention of employers to the commencement of the implementation of Employees, Compensation Scheme, ECS, a product of ECA and the payment of contributions as provided by the ECA 2010. According to NSITF, “the scheme provides guaranteed and adequate compensation for all employees or their dependants for any death, injury, disease or disability arising out of or in the course of employment. The scheme also offers rehabilitation and vocational training services to employees with work related disability with a view to bringing such employees back to work. In specific terms, the following compensations are payable under the Act: Compensation for death – payable to dependants of the deceased employee’s child/children, widow/widower etc., Compensation for injury – temporary/permanent, partial or total disability, Compensation for mental stress, Compensation for hearing impairment, Compensation for occupational diseases (list of diseases up-dated from time to time), Health care benefit, i.e medical expenses are also paid for under the scheme. Compensation is also payable for injuries sustained by employees outside the normal working place where the business of the employer extends beyond the usual work place or the nature of employment is such that the employee is required to work both in and out of the usual work place.” “For the avoidance of doubt, we hereby reiterate that the Employees, Compensation Act (ECA 2010) repealed the work men’s Compensation Act 2004. The Act came in to effect on 17th December, 2010 and from that date, the Workmen’s Compensation Act (WCA) ceased to be the applicable law on the subject of employees compensation for work injury or Occupational diseases.
Culled from article by Victor Ahiuma Young (Vanguard Newspaper, March 28th 2012
Don't forget readers, remittance for contributions  is calculated as 1% of payroll for the first two years it is implemented. Not remitting Contributions under the Employee's Compensation Act 2010 and the Pension Reform Act (as amended) can attract a penalty of 10% of the un-remitted 1% monthly payroll employee contribution to NSITF.
As an employer, your NSITF remittances are tax deductible expenses in Nigeria.

Please note that the Employee's Compensation Act 2010 did not abolish the Group Life Policy required under the Pension Reform Act (as amended). Employers should therefore continue to 

·         remit pension contributions for their employees;
·         take out a Group Life Policy for their employees;
·         remit to NSITF 1% payroll as employee's compensation contribution. 

SAP restates commitment to SMEs’ growth in Nigeria

Culled from: 
BUSINESS management software, solutions and services provider, SAP has reiterated commitment to the growth of Small and Medium Scale Enterprises (SMEs) in Nigeria, stressing that there are solutions that small organisations can leverage on for growth.SAP stressed that with the emerging markets status of Nigeria, there are vast opportunities for business growth in the country.At a forum in Lagos at the weekend, Vice-President of SAP Europe, Middle East and Africa (EMEA), Tim Noble said, “this is a very exciting time for SAP in Africa, as well as, globally.  SAP is growing very quickly, last year was the best year in SAP’s 40-year history.“We are working to boost the growth of Small and Medium Scale Enterprises in Nigeria and other markets within the region.  SAP are the developers of enterprise business application software that makes companies more efficient, more productive, and more profitable.” 

He noted that there are five key areas of SAP growth in terms of geography; they are Brazil, Russia, China, Middle East and Africa, stressing that SAP’s overall strategy is premised on five focus areas. He explained that the first is the whole layer of applications and the goal is to make the world run better.  Noble said the second is SAP analytics, where we have a clear understanding of our customers and we provide solutions to businesses. According to him, the third is in the area of mobility, and fourth is database and technology. The fifth area is in the area of cloud. Noble added that Nigeria is one of the most important markets for SAP, stressing that there was need for the company to grow by about a 100 people a year in and build more partners. “Through SAP and appropriate partners, we will have significant growth throughout Africa,” he said. The Managing Director, SAP West Africa, Mr. Richard Edet, said SAP has seen significant growth in terms of revenue, he noted that SAP is not only for big organisations, “we provide solutions that can fit any customer with more than 88 000 small medium enterprises world-wide.  We have a customer of ours who operates from Alaba market. We also have a car dealer, who is our customer.”

Speaking about the company’s young professional scheme to Nigerians, he said, SAP has a scheme that will take graduates from university and train them.  “We have several educational partners who deliver classroom lectures. We are also in talks with big organisations to train people.The Head of the Africa Market Unit, Mr. Pfungwa Serima, spoke further on the growth of SAP in the African continent. He said, “we have been fortunate to have worked with partners and we also partner with a lot of customers and our commitment to Nigeria is very important. “We are also investing in communities where we are doing business because it is not only about us coming in to do business but we have to be indigenous. “The business has been going great. We have seen a lot of investment in terms of revenue. A considerable amount of local people have joined SAP from the Diaspora and this is encouraging for Africans returning home.  We have also been involved in CSR activities in Nigeria aimed at promoting education, economic opportunity and business integrity,” he said.


"... Mr Kola Balogun, the Chairman, Governing Council of the NYSC in  Osun,  on Tuesday  advised  corps members to prepare for self employment after service. Balogun made the call at the closing parade for the 2012 Batch ‘A’ corps members held at the permanent orientation camp in Ede, Osun. According to him, corps members must start making  maximum use of the various skills acquisition opportunities initiated by the NYSC  in the camp. “The government cannot do it alone by creating jobs for all the teeming youths  and therefore you have to avail yourselves of the various training opportunities at your disposal. “Successful men in the world today are those who used their brains to achieve feats;  so you must have discovered your talents to know where you can excel in life,” he said. Gov. Rauf Aregbesola, in an address he sent to the occasion,   urged corps members to use the skills they acquired for the  benefit and progress of  society. “The founding fathers of the scheme invested a lot of  human and capital resources in the project and you should strive hard to sustain the legacy for the incoming generation,” he said. He also advised them not to misuse the martial training they had acquired for self-defence by not using it to intimidate or harass members of the  host communities. Also speaking,  Mr Henry Enyenihi, the State Coordinator of the NYSC,  charged  corps members  to acquire more skills in their primary places of assignment to complement the training they got  in the camp..." 

Hmm... Do you guys agree or disagree with the views expressed above?