The Minister of Labour, Employment and Productivity, Muhammad Dingyadi, and the Managing Director of the Nigeria Social Insurance Trust Fund (NSITF), Oluwaseun Faleye, have jointly called for the strengthening of Nigeria’s social security framework through more effective implementation of the Employee Compensation Scheme (ECS).
Both leaders made the call on Monday during the 2025 retreat of the National Assembly Joint Committee on Employment, Labour, and Productivity held in Lagos. Themed “Building a Sustainable Future: Strengthening Social Security & Enhancing Labour Productivity in Nigeria,” the retreat was organised by the NSITF and brought together key stakeholders from government and the private sector.
Dingyadi: Social Security Reform Is Critical
Minister Dingyadi emphasized the urgent need for strategic reforms in Nigeria’s social insurance system to expand coverage, enhance benefits, and ensure long-term sustainability.
“We must strive to create a robust social security system that provides adequate protection for workers against income loss due to unemployment, disability, old age, and other contingencies,” he stated.
He noted that a well-motivated workforce is essential for national productivity and economic prosperity. “Workers must be supported beyond just wages or pensions. When a worker loses their ability to work due to injury or death, traditional compensation is often inadequate. This discourages productivity and limits a worker’s commitment,” he added.
Highlighting the role of the Employee Compensation Scheme, established under the Employee Compensation Act of 2010, Dingyadi explained that the ECS mandates all employers to enroll their workers in the scheme at no cost to the employees. The Fund ensures compensation for employees affected by workplace injuries, diseases, disabilities, or death—benefiting both workers and their dependents.
He also praised NSITF’s Managing Director, Oluwaseun Faleye, for revitalizing the agency and organizing the retreat, expressing confidence that the legislature would support ongoing efforts to improve employee welfare.
Faleye: Expand Coverage, Enforce Compliance
In his remarks, Faleye reaffirmed NSITF’s commitment to enforcing ECS compliance across all tiers of government, including local and state levels. He called for amendments to the current law to expand coverage to National Youth Service Corps (NYSC) members and interns, noting the importance of including more vulnerable groups in social protection plans.
“We must do more in terms of enforcement so workers and employers understand their obligations,” he said. “This is especially important for the private sector, where awareness and compliance still need significant improvement.”
Faleye acknowledged that Nigeria faces multiple challenges, including youth unemployment and economic uncertainty, which heighten the need for a resilient and protected workforce.
“This retreat is timely. Our nation is at a critical juncture where economic growth, employment, workplace safety, and social protection converge,” he said. “We must build a system that doesn’t just respond to injury but anticipates risk and reassures every Nigerian worker that their contributions matter.”
He expressed optimism that the deliberations would lead to more effective, transparent, and trusted social insurance programmes, driven by collaboration among all stakeholders.
Olofin: Opportunity for Reflection and Strategy
Chairman of the NSITF Management Board, Shola Olofin, described the retreat as a key moment for evaluating the Fund’s achievements and identifying areas for improvement.
“This retreat provides a unique platform to strengthen collaboration, enhance compliance with the ECS, and align our operational framework with global best practices,” Olofin said. “It’s a chance to develop actionable strategies for advancing inclusive worker protection.”
NSITF Reports Growing Impact
Between June and July 2025, the NSITF disbursed ₦172.5 million to seven ECS beneficiaries. During the same period, employee enrollment surged by 151%, reflecting growing awareness and adoption. The number of Small and Medium Enterprises (SMEs) participating in the scheme also rose significantly—from 1,665 to 2
