The Senate has passed for second reading a bill seeking to merge the Nigeria Social Insurance Trust Fund (NSITF) Act and the Employees’ Compensation Act into a single legislation.
Sponsored by Senator Oluwole Fasuyi, representing Ekiti North, the bill aims to repeal the existing NSITF and Employees’ Compensation Acts and consolidate them into a unified legal framework under the proposed Nigeria Social Security Trust Fund (NSSTF).
Fasuyi said the legislation is designed to harmonise social insurance and workers’ compensation laws in order to eliminate duplication, enhance efficiency, and establish a central institution for managing social security in Nigeria.
He explained that the proposed law seeks to provide comprehensive protection for workers in both the formal and informal sectors against workplace injuries, disabilities, unemployment, retirement, and other risks that threaten their livelihood.
“The objectives of the bill are to harmonise existing laws by consolidating the provisions of the Nigeria Social Security Trust Fund Act and the Employees’ Compensation Act into one unified legal framework,” Fasuyi said. “It will establish the Nigeria Social Security Trust Fund as a central institution for the management and administration of social security funds in Nigeria.”
He further noted that the bill would expand social protection coverage, ensure sustainable financing through pooled contributions from employers, employees, and government, and promote accountability and transparency by streamlining the governance structure.
Fasuyi added that the bill aligns with international best practices and labour standards as recommended by the International Labour Organisation (ILO).
Senator Adams Oshiomhole, representing Edo North and a former president of the Nigeria Labour Congress (NLC), seconded the motion, describing the proposal as a “timely and practical reform.”
“It is consistent with the president’s plan to reduce agencies and overhead costs,” Oshiomhole said. “It will ensure greater efficiency and make government run effectively. I support this bill wholeheartedly and all the issues raised.”
Simon Lalong, senator representing Plateau South and former Minister of Labour and Employment, also backed the bill, saying it was long overdue. “As a former minister of labour and employment, I must say this bill is timely. For those who understand workers’ compensation, this does not need much debate,” he said.
Senator Diket Plang, representing Plateau Central and chairman of the Senate Committee on Labour, said the bill would strengthen enforcement powers and enable the NSITF to hold defaulters accountable. “In the previous law, there was no specified provision for defaulters, making it difficult for NSITF to reprimand offenders. This bill will help the agency ensure workers are compensated and protected in case of workplace injuries,” Plang said.
Victor Umeh, senator representing Anambra Central, supported the consolidation effort, saying it would simplify Nigeria’s labour laws. “There is no need to have two laws. This bill will bring them together and give us one act dealing with workers’ compensation in both the private and public sectors,” he said.
Senate President Godswill Akpabio commended Fasuyi for sponsoring the bill before subjecting it to a voice vote. The bill was subsequently referred to the Senate Committee on Labour and Employment for further legislative work, with a directive to report back within four weeks.
