Senators and members of the House of Representatives have pledged to work closely with state governors and local government chairmen to ensure full participation and compliance with the Employees’ Compensation Scheme (ECS) across all tiers of government.
The lawmakers gave this commitment at the close of a two-day strategic retreat held in Lagos from August 4–5, 2025, organised by the Nigeria Social Insurance Trust Fund (NSITF) for the Senate and House Committees on Labour, Employment, and Productivity.
In a joint communique signed by Senator Diket Satso Plang (Senate Committee Chairman), Hon. Adegboyega Adefarati (House Committee Chairman), Hon. Olushola Olofin (NSITF Board Chairman), and Barr. Oluwaseun Mayomi Faleye (NSITF Managing Director/CEO), the legislators affirmed their commitment to ensuring ECS contributions are reflected and funded in the annual budgets of all Ministries, Departments, and Agencies (MDAs).
The resolution aims to expand ECS coverage, especially in state and local government institutions that have lagged in compliance, creating significant gaps in social security for workers at those levels.
“Senators and members of the National Assembly will actively engage their state governors and local government chairmen to ensure full participation in the ECS,” the communique stated. “They will also work closely with Appropriation Committees to guarantee that ECS contributions are adequately budgeted across all MDAs.”
NSITF to Prioritise Workplace Accident Prevention
The NSITF also announced it will shift its operational focus toward preventing workplace and work-related accidents, rather than only reacting to incidents. The Fund plans to boost health, safety, and environment (HSE) oversight through digital reporting systems and compliance monitoring tools, improving data-driven decision-making and proactive safety management.
In line with global best practices, the NSITF Board and Management committed to aligning their governance frameworks with the International Social Security Association (ISSA) standards for good governance. This includes increased transparency, accountability, and high performance in all operational areas.
Key Initiatives and Observations
The communique outlined several strategic priorities and observations:
- Aggressive sensitisation campaigns, strategic partnerships, and innovative outreach to expand ECS enrolment among employers and workers.
- A call for immediate actuarial valuation of the ECS fund to assess its financial health and sustainability.
- Recognition of improved performance in ECS operations, including a doubling of claims processed and paid, indicating growing efficiency—but also highlighting the rise in workplace incidents.
- Commendation of the NSITF management for notable improvements, especially in the increase in registered employers and enhanced claims administration.
Despite progress at the federal level, the communique noted that state and local governments remain underrepresented in ECS participation, posing a serious gap in coverage. Lawmakers stressed the need for urgent reforms to strengthen social security systems and boost labour productivity across the country.
Legislative Reforms Underway
The National Assembly is currently considering a private member bill to repeal and replace the existing NSITF and Employees’ Compensation Act (ECA). This proposed legislation—prompted by the 2024 retreat—aims to deliver a more robust legal framework for social security and workplace safety.
The communique also observed a critical lapse in budgeting practices, where many MDAs fail to make appropriations for ECS contributions. Lawmakers called for stricter enforcement and increased awareness to address this shortfall.
Additionally, the NSITF has been directed to convene a stakeholders’ retreat on the proposed ECS reform bill ahead of its public hearing, ensuring broader input and consensus.
“Every claim paid under the ECS represents a story of pain and loss for a Nigerian worker and their family. Preventive strategies must become the top priority,” the communique emphasized.
Conclusion
The retreat reaffirmed the National Assembly’s and NSITF’s shared commitment to building a resilient, inclusive, and sustainable social security system. With renewed legislative support and a focus on preventive measures, the ECS is expected to play a vital role in safeguarding Nigerian workers and improving national labour productivity.
