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AI, Automation Threaten Workers’ Social Protection – NSITF

The Nigeria Social Insurance Trust Fund (NSITF) has called for comprehensive reforms of Nigeria’s social security system to address emerging employment risks associated with artificial intelligence (AI), automation, remote working arrangements and the growing gig economy.

It warned that millions of Nigerian workers could remain economically active without adequate social protection if existing labour and social security frameworks are not adapted to accommodate changing employment patterns.

Managing Director and Chief Executive Officer of NSITF, Mr Oluwaseun Faleye, said technological advancements were transforming the nature of work and creating new challenges for conventional social protection systems, particularly for workers engaged through digital platforms and other non-traditional employment arrangements.

Faleye made the call at a forum in Lagos, where he presented a paper titled “Social Security and Workers’ Welfare in Nigeria’s Political Transition: Closing the Protection Gaps and Building a Sustainable Safety Net.”

The workshop was themed, “Workers at the Centre of Nigeria’s Political Transition: Defending Rights, Advancing Welfare and Building Economic Justice.”

Represented by the Deputy General Manager and Head of Corporate Affairs, Alexandra Mede, the NSITF chief executive said Nigeria needed to strengthen its social protection architecture to ensure that workers were not excluded from essential welfare provisions as businesses increasingly adopted technology-driven operations.

He expressed concern that the expansion of artificial intelligence, automation, remote work and digital employment platforms could widen existing social security gaps, especially for workers whose employment arrangements fall outside conventional employer-employee relationships.

Faleye questioned how social security coverage could be extended to workers in the gig economy, freelancers, digital-platform operators and other categories of employees whose work arrangements do not fit into traditional employment structures.

He maintained that technological advancement should not come at the expense of workers’ welfare, economic security and fundamental rights.

According to him, the increasing adoption of technology in workplaces makes it imperative for policymakers and relevant institutions to reconsider existing social protection mechanisms and develop more inclusive arrangements that reflect the changing realities of the labour market.

“Technological progress must not create a situation where people remain economically active but are inadequately protected,” he said.

The NSITF boss stressed that social security should be regarded as an investment in human dignity, social stability and economic resilience rather than merely an administrative process involving institutions, regulations, contributions and statistics.

He explained that the fundamental objective of social protection was to provide workers and their families with financial and institutional support when circumstances beyond their immediate control threaten their livelihoods.

He identified occupational injuries, disabilities, work-related diseases and other employment-related risks as circumstances that could undermine workers’ economic stability if adequate protection mechanisms were unavailable.

Faleye said addressing the existing gaps would require improved public awareness, stronger employer compliance, accessible social security services, reliable workforce data, efficient institutions and sustained collaboration among relevant stakeholders.

He emphasised that the responsibility for building an inclusive social security system should not rest solely on government agencies but should involve employers, organised labour, the media, development partners and other institutions.

On the Employees’ Compensation Scheme (ECS), administered by the NSITF, Faleye described it as a critical instrument for protecting Nigerian employees against the economic consequences of workplace injuries, occupational diseases, disabilities and other employment-related hazards.

He explained that the scheme represents a social compact involving employers, workers, workplaces and the wider society, designed to ensure that employees and their dependants are not left financially vulnerable when workplace-related incidents occur.

He, however, noted that the effectiveness of the scheme depended largely on employers’ awareness of their statutory obligations and willingness to comply with the requirements.

He also called for greater sensitisation of employers and employees to improve understanding of the scheme and expand its reach across different sectors of the economy.

Faleye also underscored the need for stronger institutional capacity and more efficient service delivery to ensure that workers could access the benefits and protections provided under the existing social security framework.

He urged government, organised labour, employers, the media and development partners to work together towards building a sustainable social protection system capable of responding to Nigeria’s evolving economic and employment realities.

According to him, protecting workers against emerging economic and social risks is particularly important as the country navigates its political transition and seeks to strengthen economic stability and inclusive development.

Meanwhile, the Labour Writers Association of Nigeria honoured Faleye with the Champion of Workers’ Social Security and Safety Award in recognition of his contributions and leadership in advancing workers’ welfare, safety and social protection in the country.

The recognition came amid growing concerns over the need to strengthen workers’ protection as technological innovation, changing business models and the expansion of non-traditional employment arrangements continue to reshape Nigeria’s labour market.