Muhammad Maigari Dingyadi, Minister of Labour, Employment and Productivity, has urged the expansion of Nigeria’s social security system to provide insurance compensation for employees and their dependents in cases of workplace accidents or fatalities. He emphasized that such reforms would enhance workers’ trust in the labour system and improve the overall well-being of Nigerian families.
Dingyadi made this call during his keynote address at the Joint Committee Retreat of the Nigeria Social Insurance Trust Fund (NSITF) for the Senate, House of Representatives, and other stakeholders. The retreat, themed “Strengthening Social Security and Enhancing Labour Productivity,” began Monday in Lagos.
The minister expressed concern over the low enrollment in the Employee Compensation Scheme (ECS), which, despite being enacted 15 years ago, has yet to gain wide acceptance. He warned that this lack of participation leaves many workers vulnerable in the event of workplace injuries or death, depriving them and their families of essential financial support.
“It is disheartening that enrollment into the scheme remains low after all these years. Many affected workers are left without adequate compensation, turning once productive breadwinners into liabilities,” Dingyadi said. “This hinders our national productivity and wastes the potential of valuable human resources.”
Highlighting the essential role of workers in the economy, he called for urgent legislative reforms to expand social security benefits and provide stronger protections for Nigeria’s workforce. He urged lawmakers to amend existing laws and consider new bills like the Occupational Safety and Health Bill, as well as revise the Nigeria Social Insurance Trust Fund Act (2010) to align with the Employees Compensation Act (2010).
“Nigeria needs a robust social security framework that safeguards workers against income loss due to unemployment, disability, old age, or workplace incidents,” he said. “Such a system not only protects individual workers but also contributes to national development.”
NSITF Reports Growth, But Calls for Wider Adoption
Supporting the minister’s remarks, NSITF Managing Director Oluwaseun Faleye revealed recent gains in employee registration and disbursement of benefits. He reported a 151% increase in enrollments in the formal sector, reaching nearly 8 million workers, and a total of ₦172.5 million paid out to beneficiaries between June and July.
Faleye also highlighted progress in the informal sector, with the number of registered small and medium enterprises (SMEs) rising from 6,000 to 15,500, contributing a total of ₦376 million.
Despite these improvements, Faleye stressed that national adoption of the ECS remains low and called on the National Assembly to help drive compliance across both public and private sectors—particularly at the grassroots level.
“One of our key appeals to the legislature is to support efforts at the state and local government levels to ensure workers everywhere benefit from the scheme,” he said. “The ECS exists as a vital social safety net for all Nigerian workers.”
Lawmakers Back Collaboration and Legislative Action
Senator Osita Isunaso, representing Imo West, affirmed the legislature’s readiness to work with the NSITF. He noted that the Occupational Safety Bill is already before the National Assembly, but emphasized the need for greater coordination between government agencies to improve compliance.
“There are reportedly 4.9 million companies registered with the Corporate Affairs Commission, yet only about half are compliant with the ECS. This reflects a lack of inter-agency collaboration,” Isunaso said. “We must work together to close this gap and ensure broader coverage for workers nationwide.”
