The Nigerian Senate on Tuesday passed for second reading a bill seeking to repeal the Nigeria Social Insurance Trust Fund (NSITF) and Employees’ Compensation Acts to establish a new Nigeria Social Security Trust Fund (NSSTF). The proposed legislation aims to harmonise the country’s social insurance and employee compensation systems to provide broader protection for workers across both public and private sectors.
The bill, titled the Nigeria Social Security Trust Fund Act 2025, was sponsored by Senator Fasuyi Cyril (APC–Ekiti), who told the Senate during plenary that the law would create a single, comprehensive legal framework for managing social security in Nigeria. According to him, the reform would eliminate duplication of functions, enhance accountability, and ensure stronger protection for workers against workplace injuries, unemployment, disability, and retirement challenges.
Explaining the general principles of the bill, Senator Fasuyi said the initiative was designed to “harmonise existing laws on social insurance and employees’ compensation into one unified framework.” He added that the proposed Fund would serve as a central institution for the management and disbursement of social security resources nationwide.
“The bill will ensure effective protection for employees in both the formal and informal sectors,” Senator Fasuyi stated.
“It will also guarantee sustainable financing through contributions from employers, employees, government, and other approved sources.”
He further emphasised that the proposed legislation aligns with international labour standards and global social security norms, stressing that it would bring Nigeria’s labour protection system in line with international best practices.
Supporting the bill, Senator Adams Oshiomhole (APC–Edo) described it as a step towards ending the persistent confusion in the management of social security schemes in the country. He said the bill “reflects the government’s resolve to cut overhead costs and prevent internal conflicts in administering social insurance funds.”
Other lawmakers — including Senator Simon Lalong (APC–Plateau), Senator Diket Plang (APC–Plateau), and Senator Victor Umeh (LP–Anambra) — also expressed support for the bill during debate.
After its second reading, Senate President Godswill Akpabio referred the bill to the Committee on Labour, Employment and Productivity for further legislative action, directing the committee to report back within four weeks.
