NSITF Plans Stricter Enforcement of Employers’ Compliance to ECS Act

Onyebuchi Ezigbo in Abuja 

As part of measures to improve the safety and welfare of workers at the workplace, the Nigeria Social Insurance Trust Fund (NSITF), has said it is considering enforcement of the law on mandatory enrollment in the social insurance scheme by all eligible employers in the country.

Under the Employee Compensation Act of (2010) all employees and employers in both public and private sectors are expected to register with NSITF.

The ECA provides for benefits like compensation for injuries and a rehabilitation program for employees with work-related disabilities, based on the principle that employers have a duty of care to protect their employees. 

However, NSITF said that due to poor compliance by organisations, it has decided to move from the current persuasion, advocacy and institutional accountability to carrying out strong enforcement to ensure compliance.

The Fund said it will be seeking for stronger legal backing which will lead to the review of enforcement provisions on the ECA to increase penalties for defaulters.

Managing Director and Chief Executive of the Fund, Barrister Oluwaseun Faleye disclosed this while speaking through the Abuja Regional Manager, Mrs. Bridget Ashang, at the annual conference of the Labour Correspondents Association of Nigeria, (LACAN) in Abuja.

In a paper titled, “Employees’ Compensation Enforcement: Issues and Challenges in the Oil and Gas Industry,” the NSITF’s boss said the Fund has faced challenges getting many operators in the Oil and gas sectors to register with the scheme.

His words: “In the oil and gas industry, where operations involve high capital, complex processes, and significant occupational hazards, the protection of workers through a strong and enforceable compensation mechanism is not only a statutory obligation – it is a moral duty and an ethical necessity.

“The Employees’ Compensation Act of 2010 was a bold, visionary step by government to protect Nigerian workers against the hazards of their occupations. It replaced the old Workmen’s Compensation regime with a no-fault, employer-funded social insurance system, a safety-net against deprivation and income insecurity.

“In the oil and gas sector, Nigeria’s economic mainstay, this mandate takes on an even deeper urgency. Here, the risks are higher, the stakes greater, and the consequences of neglect, often

devastating.”

Providing insight to the challenges of enforcement in the oil and gas sector, Faleye listed the issues as non-compliance and evasion, outsourcing and casualisation of workers, low awareness and weak sanctions, as well as poor safety culture in the sector as some of the.

To combat these problems, the Managing Director explained that the Fund had instituted numerous reforms including periodic inspection of employers’ records and documents, digitalization of registration and remittance processes.

Ather measures include; simplification of claims and compensation process, aggressive engagements with stakeholders, inter-agency collaborations and Safety and health measures to prevent workplace hazards.

Going forward, Faleye called for a review of enforcement provisions in the ECA to increase penalties for defaulters. 

He further advocated making ECS compliance as a precondition for licensing or renewal, and a unified labour data system for seamless monitoring. 

In addition, NSITF Boss recommended empowerment of labour inspectors through training and resourcing to penetrate even the most remote installations and naming and shaming of defaulters.

​  

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