AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
Every employer in Nigeria must contribute 1% of its total monthly payroll to the Employees' Compensation Fund run by the Nigeria Social Insurance Trust Fund (NSITF), under the Employees' Compensation Act 2010. Registration and payment are done through NSITF's Employer Self-Service Portal (ecsonline.nsitf.gov.ng), and a registered, paying employer can apply for a certificate of compliance.
What the NSITF contribution is for
The Employees' Compensation Scheme (ECS) pays compensation to workers who are injured, disabled or killed in the course of their work, or who develop an occupational disease. NSITF manages the fund under the Employees' Compensation Act 2010. Its own services page describes the scheme as funded by every registered employer at 1% of total monthly payroll, and lists benefits such as disability benefit, which it puts at 90% of the worker's remuneration.
The cost sits with the employer. Unlike pension, nothing is deducted from the employee's salary for NSITF. If you run payroll, the 1% is a business expense that you calculate on the gross pay of everyone on the payroll that month.
Who has to register
The obligation is not limited to large companies. In a judgment reported on 7 May 2025, the National Industrial Court held that a school was an employer within the meaning of section 73 of the Act and was bound by section 33(1) to make a monthly contribution of 1% of its total monthly payroll into the fund. The court ordered it to compute and pay contributions going back to July 2011. The lesson for a small business is that the duty starts when you employ people, not when NSITF writes to you.
- Companies, partnerships and sole proprietors with staff on payroll
- Schools, churches, NGOs and associations that pay employees
- Businesses whose staff are few, part-time or new; the 1% is worked out on whatever payroll exists
Outsourced staff are normally counted on the payroll of the firm that employs and pays them. If you use an outsourcing contractor, ask for its NSITF certificate; see our guide on who is the employer of outsourced security, cleaners and drivers.
Steps: registering on the NSITF portal
- Gather your CAC registration details, business address, Tax ID and a list of staff with their monthly pay.
- Go to the Employer Self-Service Portal at ecsonline.nsitf.gov.ng, which NSITF names as the channel for employer services.
- Create the employer profile and complete onboarding. NSITF states that a one-time onboarding fee applies; the amount is not published on its services page, so confirm it on the portal before paying.
- Upload or enter the employee schedule so the system can compute 1% of your monthly payroll.
- Pay the contribution through the payment channel the portal generates, and keep the receipt and schedule together.
- Once contributions are up to date, apply on the portal for the certificate of compliance. NSITF lists issuance and renewal of the certificate as a service that attracts a charge; again, check the current amount on the portal.
Getting help
NSITF lists a toll-free line (0800 223 0400), 0700 312 2400 and customersupportcentre@nsitf.gov.ng on its services page, and its head office at Plot 794 Muhammadu Buhari Way, Central Business District, Abuja. State branch offices also handle registration questions.
Worked example: what 1% looks like
Example only. A bakery in Ibadan has six staff. In March its gross payroll is ₦1,450,000.
| Item | Amount |
|---|---|
| Gross monthly payroll (example) | ₦1,450,000 |
| NSITF rate | 1% |
| Employer contribution for March | ₦14,500 |
| Over 12 months at the same payroll | ₦174,000 |
Because the rate is applied to total payroll, the figure moves with headcount and pay rises. Recalculate each month from the actual payroll rather than paying a fixed sum.
The compliance certificate and why it matters
The NSITF certificate of compliance is the document clients and agencies ask for as proof that you are registered and paying. It is commonly requested in public procurement and by larger companies vetting suppliers, alongside a tax clearance certificate and the PenCom pension compliance certificate. NSITF's services page does not state how long a certificate is valid, so check the date printed on yours and renew before a tender deadline rather than after.
Common mistakes that create arrears
- Paying on basic salary only. The rate is on total monthly payroll. If allowances form part of pay, leaving them out understates the figure. Check with NSITF how your pay elements are treated before you settle on a method.
- Registering late and paying from today. The court in the NECO Staff School case ordered contributions from July 2011, the point the obligation began, not from the date of registration.
- Forgetting new hires. Every month's schedule should match that month's payroll, including staff who joined or left part way through.
- Losing receipts. The certificate of compliance depends on proof of payment. Keep each month's schedule and receipt in one folder, by year.
If you discover past years were missed, contact NSITF before a client asks for a certificate. Working out the arrears yourself, month by month from payroll records, puts you in a better position when you discuss settlement with the branch office. Our checklist of payroll records to keep shows what to hold on file.
Where Pryme fits
A Pryme Business Account lets you run salaries and keep the payroll schedule beside the payments, which makes the 1% calculation easier to check. The Finance agent can prepare the monthly NSITF figure from the payroll for you to review, and a person approves any payment above the ceiling you set; see Finance agent. For the other statutory deductions, read NHF, NSITF and ITF.
Questions people ask
How much is NSITF contribution in Nigeria?
NSITF states that every registered employer pays 1% of its total monthly payroll into the Employees' Compensation Fund. It is paid by the employer, not deducted from staff pay.
Is NSITF compulsory for small businesses?
Yes. The Employees' Compensation Act applies to employers generally, and the National Industrial Court has ordered a small school to pay arrears back to 2011. There is no published small-employer exemption.
How do I register my company with NSITF online?
Use the Employer Self-Service Portal at ecsonline.nsitf.gov.ng, complete onboarding (a one-time fee applies), add your staff schedule and pay the computed 1%.
How do I get an NSITF compliance certificate?
Bring your contributions up to date, then apply on the same portal. NSITF says issuance and renewal attract a charge; the portal shows the current amount.
Sources
- NSITF: Services (Employees' Compensation Scheme) · accessed Oct 2026
- National Industrial Court: employer obligated to pay minimum 1% of payroll into ECF (7 May 2025) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.