The Nigeria Labour Congress (NLC) has criticised the poor level of compliance with the Employee Compensation Act (ECA), warning that millions of workers remain unprotected despite contributing to a government-backed social security scheme designed to cushion workplace injuries and fatalities.
Speaking at a public hearing on the Nigeria Social Insurance Trust Fund (NSITF) Bill, NLC President, Comrade Joe Ajaero, said fewer than 30 per cent of employers currently comply with the law, leaving the majority of workers without access to compensation for accidents, disability, or work-related death.
“Even the level of compliance with the Employee Compensation Act is less than 30 per cent,” Mr. Ajaerosaid, adding that failure to enforce the law undermines the welfare and security of employees. “Even the informal sectors are not complying. Of what use are laws if they are not complied with?”
He faulted the structure of the NSITF board, saying representation has tilted disproportionately towards the government rather than the tripartite arrangement—government, employers, and organised labour—upon which the fund was founded.
“The NLC is concerned that this is a tripartite organisation and that this should be reflected in the composition of the board,” he said. Mr. Ajaero noted that appointing eight government nominees against two labour representatives and only one employer representative “negates the principle of the tripartite template anywhere in the world.”
He warned that such imbalance allows government to “neutralise the position of others during boardroom politics,” despite the NSITF being funded by contributions meant for workers’ safety and compensation. He insisted that board leadership should rotate among stakeholders to ensure accountability.
The NLC also opposed proposals requiring the NSITF managing director to report directly to the Minister of Labour instead of the board, arguing that such an arrangement would strip the board of its statutory oversight powers.
The union stressed that workers’ contributions must not be subjected to unilateral decisions, noting that the compensation scheme “is the money contributed by workers and their employers for the interest of the workers.”
At the hearing, the NSITF Managing Director, Barr. Oluwaseun Faleye, urged lawmakers to repeal the existing NSITF Act (1993) alongside the ECA Act (2010), saying the co-existence of both laws had created conflicting provisions and operational confusion.
“The consolidation of both Acts into a single, coherent statute—the Nigeria Social Security Trust Fund Act—is timely, necessary, and commendable,” Mr. Faleye said.
He explained that harmonisation would strengthen enforcement powers, expand the fund’s legal mandate, and improve workplace safety standards through penalties for non-compliance.
Mr. Faleye added that removing the word “insurance” from the agency’s name followed stakeholder complaints that the term discouraged acceptance of the compensation scheme in some sectors.
The new bill, he noted, seeks broader coverage for workers, clarity on operational roles, and stronger sanctions to compel employer compliance with safety and compensation standards.
