The National Industrial Court of Nigeria (NICN), Awka Judicial Division, has reaffirmed employees’ rights to workplace injury protection and compensation by ruling that employers covered under the Employees’ Compensation Act must comply with mandatory contribution and reporting obligations.
In a judgment delivered on June 4, 2026, in Suit No. NICN/AWK/56/2025, the court upheld claims brought by the Nigeria Social Insurance Trust Fund (NSITF) against the Anambra State Investment Promotion and Protection Agency (ANSIPPA), declaring that the agency is legally bound by the provisions of the Employees’ Compensation Act, 2010.
The ruling reinforces protections available to workers under the Employees’ Compensation Scheme, which provides compensation and support for employees who suffer workplace injuries, occupational diseases, disabilities, or work-related deaths.
The court held that ANSIPPA qualifies as an employer under the Act and is therefore required to make monthly contributions to the Employees’ Compensation Fund, maintain accurate payroll records, and comply with all statutory obligations relating to employee compensation and workplace safety protections.
As part of the judgment, the court authorised NSITF inspection officers to conduct a comprehensive assessment of the agency to determine its level of compliance with the law.
The court further ruled that any liabilities uncovered during the inspection would be binding on the agency and payable in accordance with statutory provisions. It also awarded N500,000 in litigation costs against ANSIPPA.
The case was prosecuted on behalf of the NSITF by legal practitioner Onunkwo Petermaximus Emeka.
Labour and legal stakeholders have described the judgment as a significant development for employee welfare and the enforcement of workplace protection laws in Nigeria.
The Employees’ Compensation Act was enacted to ensure that workers and their families receive financial support and compensation when employees are injured, become disabled, contract occupational illnesses, or lose their lives as a result of work-related incidents.
The court’s decision reaffirmed that compliance with the scheme is mandatory and applies to employers across both the public and private sectors, including government agencies, public institutions, corporate organisations, and other establishments covered by the law.
The judgment is also expected to strengthen the enforcement powers of the NSITF, the agency responsible for administering the Employees’ Compensation Scheme and protecting workers against occupational risks.
Reacting to the ruling, NSITF Branch Manager in Awka, Gabriel Akubueze, described the decision as a major step forward in efforts to improve employer compliance with labour protection laws.
According to Akubueze, the judgment sends a clear message to organisations that fail to meet their obligations under the Employees’ Compensation Scheme.
He said the ruling demonstrates that employers can be compelled through the courts to submit to statutory inspections, compliance assessments, and the payment of liabilities established under the law.
For employees, the judgment underscores the importance of the Employees’ Compensation Scheme as a workplace safety net and reinforces employers’ responsibility to contribute to a system designed to provide financial protection when workers experience job-related injuries, illnesses, or disabilities.
The ruling is expected to encourage greater compliance among employers and improve workers’ access to compensation benefits across the country.
