The Nigeria Social Insurance Trust Fund (NSITF) is pushing for stricter enforcement of the Employees’ Compensation Scheme (ECS), warning that employers who fail to register their workers may soon face criminal prosecution.
The Fund said it is considering moving away from its current persuasive strategy toward a firmer, penalty-driven approach to strengthen workplace safety and protect employees’ welfare.
Speaking at the annual conference of the Labour Correspondents Association of Nigeria (LACAN) in Abuja, NSITF Managing Director and Chief Executive, Oluwaseun Faleye, called for stronger legal backing and a review of the Employees’ Compensation Act (ECA) to increase sanctions for defaulters.
In his presentation titled “Employees’ Compensation Enforcement: Issues and Challenges in the Oil and Gas Industry,” Faleye stressed that the high-risk nature of the oil and gas sector makes strict adherence to compensation laws a moral, ethical, and statutory obligation.
“The Employees’ Compensation Act of 2010 was a bold, visionary step by the government to protect Nigerian workers against the hazards of their occupations,” he said. “In the oil and gas sector, where risks and stakes are significantly high, neglect can lead to devastating consequences.”
Faleye outlined persistent challenges in enforcing compliance, including evasion by some employers, the widespread outsourcing and casualisation of labour, poor safety culture, weak sanctions, and low awareness of the scheme.
To address these gaps, he said the Fund had introduced several reforms, such as periodic inspections, digitalisation of registration and remittance processes, simplified claims procedures, aggressive stakeholder engagement, and inter-agency collaboration to improve workplace safety.
Looking ahead, Faleye urged a review of the ECA to strengthen enforcement mechanisms and impose stiffer penalties on non-compliant employers. He also recommended making ECS compliance mandatory for licensing and renewal processes, creating a unified labour data system, empowering labour inspectors, and implementing “naming and shaming” measures for persistent offenders.
Established under the ECA 2010, the ECS is designed to provide compensation, rehabilitation, and support for workers who suffer injury, disability, disease, or death in the course of employment, funded by a one-percent levy on employers’ payroll.
Meanwhile, two major unions representing NSITF workers—the Association of Senior Staff of Banks, Insurance, and Financial Institutions (ASSBIFI) and the National Union of Banks, Insurance and Financial Institutions Employees (NUBIFIE)—have declared support for the Fund’s management.
In a letter to the Minister of Labour and Employment, Dr. Muhammadu Dingyadi, signed by the leadership of both unions, the groups commended the minister for promoting decent work standards and praised the NSITF management for its efforts to ensure prudent use of the Fund’s resources and sustain organizational reforms.
