Monday, 21 July 2014

Nigeria’s pioneering social protection in Africa – Munir Abubakar, NSITF, MD

At this year’s International Labour Conference (ILC) in Geneva, issues such as social protection, child labour, migrant workers and youth unemployment were given serious thought. Nigeria is among the developing countries that do not have a well-defined social protection, es­pecially for the unemployed, the aged and children. However, the Managing Director of the Nigeria Social Insurance Trust Fund (NSITF).
Munir Abubakar, in this interview, expresses the nation’s desire to toe the line of the organized societies by developing its social protection scheme. He also states that with the development of infrastructure, the problem of unemployment will be appropriately addressed as infrastructures like electricity hold the key to the development of the nation’s informal sector. The NSITF boss equally speaks on the progress of the new Employees’ Compensation Act (ECA) and other national issues.
The ILC
The 2014 International Labour Conference (ILC) in Geneva is quite nice. I am very much impressed with it. The most interesting aspect of the discussions has to do with social security and the aspect that dealt fully on workers’ welfare.
The discussions made so far in this year’s ILC are far better than the previous year’s discussions because of the added values on the issues of protecting work­ers’ right, migrant workers’ right and the aspect that dealt with the informal sector.
Now for us in NSITF, these discussions made and the resolu­tions reached would, in both short and long run, boost our efforts to ensure that the issues of workers’ compensation and all other issues that have to do with workers’ wel­fare in Nigeria are well taken care of in line with the international standard.
ILC 2014 resolutions on Nige­rian workers’ welfare
Yes. It is almost the same. First of all, let me say that social security protection is a little bit different, but have the same goal. Social security protection is over 100 years in existence but there is no harm in starting late. I keep on saying the issue of wel­fare of workers is not debatable and we are putting all resources at our disposal to make sure the issues are addressed. Nigeria is at the forefront of addressing social protection issues in Africa. And that is why we are putting every effort in place to get all issues sur­rounding it stabilized.
Do not forget that most countries that are developed give unemployment benefits to the unemployed and with the social protection policy in Nigeria, we shall get there.
We are aware that Nigerians are already yearning for these benefits, and what we are doing in NSITF is to ensure that we take care of workers’ welfare in line with social protection floor initia­tive banner in the areas of shelter, clothing and all other aspects of the policy in line with interna­tional standards.
It is obvious that we have to start from somewhere and we shall surely get to the needed destination point
Social protection floor initia­tive banner
Well, Social Protection Floor is a global social policy approach put in place to promote integrated strategies for providing access to essential so­cial services and income security for all.
The initiative recognizes the importance of ensuring social protection for all, the United Nations System Chief Execu­tive Board for Coordination (UNCEB) adopted the Social Protection Floor initiative in April 2009, as one of the nine UN joint initiatives to cope with the effects of the economic crisis.
This initiative was co-led by the International Labour Office and the World Health Organiza­tion and involves a group of 17 collaborating agencies, including the United Nations agencies and international financial institutions. And within the framework of the Social Protection Floor Initia­tive, the Social Protection Floor Advisory Group has been created  to enhance global advocacy ac­tivities and to further elaborate the conceptual policy aspects of the approach.
The Advisory Group provides general guidance in several areas related to the feasibility, appli­cability and adaptability of the social protection floor concept and its implementation process in different socio-economic and institutional contexts at the local, national, regional and global levels.
Social protection floor under­scores need for social security
Yes. The Need for Social Security has more to do with the unexpected life circum­stances, the loss or reduction of productive capacity, and discrimi­nation that can hinder a person or a family’s well-being.
This is because everyone needs protection from social risks and resulting insecurity as social secu­rity benefits or social transfers are powerful tools to combat poverty and inequality, and to invest in so­cial and economic development.  As such, they are key to achieve the Millennium Development Goal (MDG) targets
In other words, social protec­tion, through social security policies that are aligned with economic and labour policies, is an economic, social and political necessity that has been recog­nized by several international declarations and agreements as a human right.
It is through insurance and assistance programmes that social security helps prevent people from falling into poverty and/or escape the poverty trap. As such, they also avoid or lessen social tensions, violent conflicts and uncontrolled migration.
Eradicating child labour
A well designed social pro­tection policy is sensitive to children’s needs and can make a real difference in the fight to eradicate child labour.
According to the latest ILO global estimates, the total number of child labourers fell from 215 to 168 million between 2008 and 2012.
And in order to accelerate the decline in child labour, the global community must address its root causes more effectively. Social protection, along with universal compulsory, formal, quality education, at least, up to the mini­mum age for work, decent work for adults and youth of working age, effective law and strong so­cial dialogue together provide the right response to child labour.
Do not forget that the ILO recently released its World Social Protection Report 2014/15 which shows that many children do not receive the child and family benefits they need to realize their potentials.
From the facts and figures, over 168 million children worldwide are in child labour; 85 million of them are in hazardous work, while the report also shows that since 2000, child labour has de­clined by one third and progress is accelerating. Between 2008 and 2012, the global number fell from 215 to 168 million, while the number of children in hazardous work fell from 115 to 85 million.
I am of the view that under-investment in children jeopardizes their rights and their future, in­cluding their right to be protected from child labour because the ILO report builds on evidence presented last year on how cash and in-kind child and family ben­efits, especially when combined with access to education and health services, can be effective in addressing child labour.
We are all aware that these cash transfer programmes for children and families have been imple­mented widely in Latin America, and also exist in Brazil’s Bolsa Família programme, the universal child benefit programme in Mon­golia and the South African Child Support Grant.
However, by building up social protection systems through the ongoing transformation agenda of President Goodluck Jonathan, we shall get there soon.
Building up of social protec­tion system
Building up social protection systems play a significant role in ending child labour. Pen­sions, as well as unemployment, maternity, employment injury and disability benefits also help prevent situations where children have to work to supplement inad­equate or insecure family incomes or enter child labour due to death, injury, sickness or other sudden income shocks.
In the latest 2013 ILO report, only 12 per cent of unemployed workers receive unemployment benefits; only 28 per cent of women in employment are pro­tected through maternity benefits, and only 52 per cent of those over retirement age receive a pension.
Health coverage that ensures access to healthcare does not only improve people’s health, it also protects households from the risk of falling into poverty due to health costs. Currently, about 40 per cent of total health expendi­ture is directly shouldered by the sick.
The building up of social protection is a pointer to the ILO Social Protection Floors Recom­mendation, 2012 that reflects on the global consensus on national­ly-defined basic social protection guarantees as a basic right for all.
Economic development
International labour standards are sometimes perceived as entailing significant costs and thus hindering economic development.
A growing body of research indicates, however, that compli­ance with international labour standards often accompanies improvements in productivity and economic performance. This is because higher wage and working time standards and respect for equality can translate into better and more satisfied workers and lower turnover of staff.
Also, investment in vocational training can result in a better-trained workforce and higher em­ployment levels. Safety standards can reduce costly accidents and health care fees, while employ­ment protection can encourage workers to take risks and to innovate.
And so, social protection such as unemployment schemes and active labour market policies can facilitate labour market flexibility; they make economic liberaliza­tion and privatization sustainable and more acceptable to the public. Freedom of association and collective bargaining can lead to better labour-management con­sultation and cooperation, thereby reducing the number of costly labour conflicts and enhancing social stability.
The beneficial effects of labour standards do not go unnoticed by foreign investors because studies have shown that in their criteria for choosing countries to invest in foreign investors rank workforce quality and political and social stability above low labour costs. At the same time, there is little evidence that countries which do not respect labour standards are more competitive in the global economy.
Employees’ Compensation Act (ECA)
The enactment of the Em­ployees’ Compensation Act (ECA) 2010 which repealed the obsolete Workmen’s Com­pensation Act (WCA) of 1942 is of immense importance to the workers of Nigeria as the scheme has achieved tremendous success as over 12,043 employers have registered from the Organised Private Sector (OPS) as at the end of February this year, while about 4.2 million estimated employees are covered from that sector. In the scheme, the Federal Govern­ment has so far paid for treasury funded MDAs from 2011 up to December, 2013, and the number of employees covered is still being reconciled and the com­puterization project to provide e-operations for the Fund has reached advance stage.
Well amongst the objective of the Employees’ Compensation Act (ECA), 2010 is to provide for an open and fair system of guaranteed and adequate compen­sation for all employees or their dependants for any death, injury, diseases or disability arising out of or in the course of employment as well as provide rehabilitation to employees with work-related disabilities as provided in the Act
The Act also gives the oppor­tunity to establish and maintain a solvent compensation fund man­aged in the interest of employees and employers, provide for fair and adequate assessments for employers, provide an appeal procedure that is simple, fair and accessible, with minimal delays as well as combine efforts and resources of relevant stakeholders for the prevention of workplace disabilities, including the enforce­ment of occupational safety and health standards.
Employees
I use this opportunity to call on the employees to com­plete the necessary compensation claims form and submit as appro­priate for processing and payment as well as submit, if he/she is fit to do so, the particulars of the injury or occupational disease on the prescribed ECS Form (duly completed by the hospital/clinic where the employee received treatment.
This is because the employee has it as an implicit obligation to monitor, through their Union representatives, the compliance status of the employer.
Unemployment problems
One thing I think the gov­ernment can do to jump-start the process of turning round the economy is the provision of infrastructure.
When there is regular power supply in place, jobs would be created naturally because the Small and Medium Enterprises (SMEs) will spring up from every nooks and crannies of the econo­my and millions of Nigerians will be employed.
For instance, if there are one million new SMEs employing at least five people on their payroll, then five million jobs would have been created. And that is what constant electricity can do in any economy.
Non-oil sector
I believe when there is a will, there is a way. I am aware that for the past four years now, there are countries that are looking for traditional stories of economic activities. I know of cocoa. We have not heard of that for some times because, while the price of oil is running to almost $1million per barrel, then there is no need for cocoa because we have money to spend. Look at when Nigeria started produc­ing cassava, Nigeria overnight became the largest producer of cassava, but because it was an integrated production system, because there was no market. The area of people-centered activities is the traditional sources of revenues which I think, the government should pay attention to. But in addition to encouraging production, government should also consider the issue of semi processing. We cannot go back to the era of exporting raw products, because it would crumble down the line, and I do not see what is difficult about it.
The scheme for New Partner­ship for African Development (NEPAD) and the NEEDS are sorts of value addition as one of the cross-cutting issues in the nation’s economic development efforts which the government has neglected. Nigeria has a very large market where there are unemployed doctors and engineers. It is a contradiction because we do not use our own local resources including human beings which are the most potent local content that would drive all other processes.
Also, in taking a look at the on­going reforms that is aggravating the value of import dependency. Look at the banking sector that is now going to consumer credit. This is aggravating the problems of our internal sector. And so if anything happens to the oil source of revenue, Nigeria will have to prepare herself for problems in the future and so the issue of go­ing back to the traditional sources of revenue is a task that must be done because what the Structural Adjustment Programme did for us was to remove the people from their normal means of livelihood without producing a replacement. Nigerians cannot be oil merchants to be able to have a strong eco­nomic base.
Achieving sustainable econo­my requires serious thinking and sacrifices
Advice
The higher institutions of learning in Nigeria are very relevant in research and development. The Universities of Agriculture have invested much into research and development.
It is interesting to note that honey used for sweetening is produced by the University of Agriculture, Abeokuta. Also, in all the universities of Science and Technology, there is research and development where juice is being manufactured.
Nigeria is a country endowed with mineral resources that most countries in the world do not possess.
The Federal Government has tried with the recent moves to cre­ate an enabling environment for institutions of higher earning to invest more in the area of research and development so as to move the country forward.
In all the universities of Agri­culture, we now have research into the preservation of juice, all to the advantage of the durable consumable locally manufactured food.

Nigeria’s pioneering social protection in Africa – Munir Abubakar, NSITF, MD

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