October 29, 2026

Senate Passes Bill to Establish Employees’ Compensation Trust Fund Agency

By Deborah Bodunde

The Senate has passed a bill seeking to establish the Nigerian Employees’ Compensation Trust Fund Agency, which will provide a new legal framework for compensating workers who suffer injuries, diseases, disabilities or death in the course of employment.

The Nigerian Employees’ Compensation Trust Fund Agency Establishment Bill, 2026, was passed on Thursday after lawmakers reconsidered its provisions and approved them clause by clause during plenary. The Senate had earlier passed the bill but later returned it for further scrutiny to address provisions requiring clarification.

Opeyemi Bamidele, Senate leader, said the proposed legislation seeks to repeal the Nigerian Social Insurance Trust Fund Act and the Employees’ Compensation Act and replace them with a new framework for employees’ compensation.

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According to Bamidele, the bill provides for compensation in cases of death, injury, disease or disability arising out of, or in the course of, employment, alongside related matters.

The Senate had recommitted the bill to the Committee of the Whole for further legislative scrutiny after Bamidele moved a motion seeking to rescind its earlier decisions on the legislation.

He said some provisions required further review to ensure administrative clarity and establish a comprehensive legal framework.

Kamorudeen Oyewumi, senator representing Osun West, seconded the motion, saying the exercise would remove ambiguities and align the proposed law with legislation establishing similar institutions.

Following the review, lawmakers approved the bill clause by clause before passing it for a third reading.

Senate President Godswill Akpabio commended lawmakers for their contributions, saying the legislation would support workers’ welfare through compensation provisions.

The Senate also passed the Federal Polytechnics Act Amendment Bill, 2026, which seeks to amend the existing law governing federal polytechnics by reviewing their functions and addressing related matters.

Akpabio said the two bills would help protect workers and strengthen technical education to support Nigeria’s economic development.

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