The Senate has passed for second reading a bill seeking to repeal the Nigeria Social Insurance Trust Fund (NSITF) Act and the Employees’ Compensation Act, paving the way for the establishment of a new Nigeria Social Security Trust Fund (NSSTF) under the proposed Nigeria Social Security Trust Fund Act, 2025.
The bill, sponsored by Senator Cyril Fasuyi (APC–Ekiti), was considered during plenary on Tuesday after he presented its general principles.
According to Fasuyi, the bill aims to consolidate existing laws on social insurance and employee compensation into a single comprehensive legislation that will strengthen the framework for managing social security in Nigeria.
“The bill will ensure effective protection of employees in both the formal and informal sectors against workplace injuries, disabilities, unemployment, retirement, and other contingencies that may threaten their livelihood,” Fasuyi said.
“It seeks to harmonise the existing NSITF and Employees’ Compensation Acts into one unified legal framework and to establish the Nigeria Social Security Trust Fund as a central institution for managing and disbursing social security funds.”
Unified Legal Framework for Social Security
Fasuyi explained that the proposed Act would eliminate duplication of functions and improve accountability and transparency in the administration of social insurance. The consolidation, he added, aligns with international labour standards and global best practices.
He said the bill also provides for sustainable financing mechanisms, including contributions from employers, employees, government, and other approved sources, to ensure effective management of social security schemes across the country.
“The bill guarantees sustainable financing and ensures accountability by streamlining governance structures,” he added. “It will expand social protection coverage to workers in both formal and informal sectors, addressing employment injuries, disabilities, and retirement contingencies.”
Broad Support from Senators
The bill received strong backing from several lawmakers, including Senator Adams Oshiomhole (APC–Edo), who said it would resolve long-standing confusion over the management and administration of social security in Nigeria.
“This bill is consistent with the government’s commitment to reduce overhead costs and avoid jurisdictional conflicts in the management of social insurance trust funds,” Oshiomhole noted.
Other senators who supported the motion included Simon Lalong (APC–Plateau), Diket Plang (APC–Plateau), and Victor Umeh (LP–Anambra), all of whom commended the move as a step toward strengthening Nigeria’s labour protection system.
Next Steps
After the bill passed second reading, Senate President Godswill Akpabio referred it to the Committee on Labour, Employment, and Productivity for further legislative work. The committee is expected to report back to the Senate within four weeks.
If passed, the proposed Nigeria Social Security Trust Fund Act 2025 would mark a major overhaul of Nigeria’s social insurance architecture, expanding coverage to millions of workers and aligning the nation’s social protection system with global standards.
