The Nigeria Social Insurance Trust Fund (NSITF) has called for stronger legal enforcement of the Employees’ Compensation Act (ECA) to ensure improved welfare and safety for Nigerian workers.
The Fund said it is time to move from “persuasion to enforcement” in holding employers accountable for compliance with the Employees’ Compensation Scheme (ECS) — a key instrument designed to protect workers against workplace injuries, disabilities, and fatalities.
NSITF’s Managing Director and Chief Executive, Barrister Oluwaseun Faleye, made the call in Abuja through the Fund’s Regional Manager, Mrs. Bridget Ashang, at the annual conference of the Labour Correspondents Association of Nigeria (LACAN).
Speaking on the theme, “Employees’ Compensation Enforcement: Issues and Challenges in the Oil and Gas Industry,” Faleye said the ECA remains a moral and legal obligation for employers, particularly in high-risk sectors like oil and gas.
“In the oil and gas industry, where operations involve complex processes and significant occupational hazards, protecting workers through a strong and enforceable compensation mechanism is not only statutory — it is a moral duty,” Faleye said.
He described the Employees’ Compensation Act of 2010 as a visionary reform that replaced the old Workmen’s Compensation regime with a modern, no-fault, employer-funded social insurance system designed to provide a safety net for Nigerian workers.
Highlighting the challenges facing enforcement in the industry, Faleye listed non-compliance, evasion, casualisation of workers, low awareness, weak sanctions, and poor safety culture as key obstacles.
To address these, he said NSITF has introduced several reforms, including:
- Periodic inspection of employers’ records and facilities,
- Digitalisation of registration and remittance processes,
- Simplification of claims and compensation procedures, and
- Enhanced stakeholder engagement and inter-agency collaboration on workplace safety.
Looking ahead, Faleye urged the government to review the ECA’s enforcement provisions to impose stiffer penalties on defaulters. He also recommended making ECS compliance a precondition for licensing or renewal, establishing a unified labour data system for monitoring, and empowering labour inspectors to ensure nationwide enforcement.
He further proposed a “naming and shaming” mechanism for chronic defaulters to deter violations.
The Employees’ Compensation Scheme (ECS), established under the ECA 2010 and managed by NSITF, provides compensation and rehabilitation for workers who suffer injury, disease, disability, or death in the course of employment. Employers contribute one percent of their payroll to the scheme.
