Labour minister seeks amendment of employee compensation law to increase enrolment

Muhammad Dingyadi, minister of labour and employment, has asked the national assembly to amend the Employee Compensation Act (ECA) 2010 to increase enrolment into the employees’ compensation scheme (ECS).

Dingyadi spoke in Lagos on Monday during a two-day retreat organised by the Nigeria Social Insurance Trust Fund (NSITF) for the senate and house committee on labour, employment and productivity.

The retreat was themed “Strengthening social security and enhancing labour productivity”.

The ECS was established under the Employee Compensation Act of 2010 to provide compensation for employees who die or sustain disabling injuries in the course of, or as a result of, their employment.

The legislation makes it mandatory for all employers of labour in Nigeria to enrol their workers in the scheme at no cost to the employees.

The employers are expected to pay one percent of their total monthly payroll for the scheme, which is managed by the NSITF.

Dingyadi said 15 years after the enactment of the ECA Act, enrolment into the scheme remains low.

The labour minister said there is a need for amendment of the legislation and passage of other bills for the repositioning of the scheme.

“The scope of the ECS goes beyond what any known insurance policy or traditional welfare package can do, saddling the NSITF with the responsibility of promoting occupational safety and health,” he said.

“It is, however, saddening to note that fifteen years since the ECA came into law, enrolment into the scheme remains low, robbing affected workers of adequate compensation and turning many breadwinners into liabilities with a bleak future for them and their dependents.

“This situation prevents our nation from harnessing the full potential and productivity of affected persons.

“It is my sincere hope that the legislature will work within this event’s deliberations to strategise on the way forward with a view to amending laws as necessary and pass new bills such as occupational safety and health bill and the Nigeria Social Insurance Trust Fund Act 2010 to align with the Employees Compensation Act 2010.

“This will go a long way to ensure a holistic repositioning of the fund, as well as empower it to effectively fulfil its mandate.”

Oluwaseun Faleye, managing director of NSITF, lamented that the enrolment into the scheme at the sub-national level is “still quite low or non-existent at all”.

Faleye said the compensation scheme is providing “real value to thousands of Nigerians”, noting that the agency wants to do more to increase enrolment.

“It is important for the organised private sector to know that your enforcement drive towards compliance with the ECS is not only solely focused on the private sector,” he said.

“But also focused on the public sector, particularly at the sub-national level, where compliance is still quite low or nonexistent at all.

“We must, as stakeholders with the best interest of all Nigerian workers in mind, ensure that the employees compensation scheme is operationalised at state and local government levels.

“Can you imagine employees in over 744 local governments across the federation? 36 states and the federal capital territory are assured of the safety net that the scheme provides in the case of work-related accidents?”