August 5, 2025

Labour Minister Seeks Amendment to Compensation Act Over Low Enrolment

The Minister of Labour and Employment , Muhammad Dingyadi, has called on the national assembly to amend the Employee Compensation Act (ECA) 2010 to drive wider enrolment into the Employees’ Compensation Scheme (ECS).

Dingyadi made the appeal on Monday in Lagos during a two-day retreat organised by the Nigeria Social Insurance Trust Fund (NSITF) for members of the Senate and House Committees on Labour, Employment and Productivity. The event was themed “Strengthening Social Security and Enhancing Labour Productivity”.

The ECS, established under the ECA 2010, provides compensation for employees who suffer death or disabling injuries in the course of their work. While the law mandates employers to enrol their staff at no cost to the workers, they are required to contribute one percent of their total monthly payroll to the scheme — funds managed by the NSITF.

Fifteen years after the enactment of the legislation, Dingyadi said enrolment into the scheme remains poor, denying many workers access to the compensation they deserve.

“It is saddening to note that enrolment remains low, robbing affected workers of adequate compensation and turning many breadwinners into liabilities with a bleak future for themselves and their dependents,” the minister said.

He added, “This situation prevents our nation from harnessing the full potential and productivity of affected persons.”

Dingyadi urged lawmakers to consider amending the existing legislation and pass new bills, including the Occupational Safety and Health Bill and a revised NSITF Act, to better align with the provisions of the ECA.

He said the ECS offers more than traditional welfare packages, placing on the NSITF the responsibility of promoting occupational safety and health.

On his part, Oluwaseun Faleye, managing director of the NSITF, said that although the scheme is already providing real value to thousands of Nigerians, enrolment at the sub-national level is “still quite low or non-existent”.

He stressed the importance of expanding coverage, particularly among workers in the public sector across states and local government areas.

“Can you imagine employees in over 774 local governments across the federation, 36 states and the federal capital territory being assured of the safety net the scheme provides in the case of work-related accidents?” Faleye said.

The NSITF boss reaffirmed the agency’s commitment to driving implementation of the scheme and providing social protection for Nigerian workers.

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