Senate advances bill to create central social security agency for workers

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 Oluwole Fasuyi, senator representing Ekiti north, the bill seeks to repeal the NSITF act and the Employees’ Compensation Act, merging both into a unified framework under the proposed Nigeria Social Security Trust Fund (NSSTF).

Fasuyi said the measure is designed to harmonise existing laws on social insurance and workers’ compensation to eliminate duplication, enhance efficiency, and create a central institution for managing social security in Nigeria.

The senator said the proposed law would harmonise existing statutes on social insurance and employees’ compensation, eliminate duplication of functions, and create a unified legal framework for managing social security in Nigeria.

He said the bill seeks to ensure comprehensive protection for workers in both the formal and informal sectors against workplace injuries, disabilities, unemployment, retirement and other contingencies 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.”

Fasuyi explained that the legislation would expand social protection coverage, guarantee sustainable financing through pooled contributions from employers, employees and government, and ensure accountability and transparency by streamlining the governance structure.

He added that the bill aligns with international best practices and labour standards under the International Labour Organisation (ILO).

‘TIMELY BILL’

Adams Oshiomhole, senator representing Edo north and former president of the Nigeria Labour Congress (NLC), seconded the motion for the bill’s consideration.

“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 threw his weight behind the proposal.

“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,” Lalong said.

Diket Plang, senator representing Plateau central and chairman of the senate committee on labour, said the bill would empower the NSITF to punish defaulters and protect workers more effectively.

“In the previous law, there was no specified provision for defaulters, making it difficult for NSITF to reprimand offenders,” Plang said.

“This bill will help the agency ensure workers are compensated and protected in case of workplace injuries.”

Victor Umeh, senator representing Anambra central, said the consolidation 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,” Umeh said.

Senate President Godswill Akpabio commended Fasuyi for sponsoring the bill before putting it to a voice vote.

The bill was then referred to the committee on labour and employment to report back to the senate within four weeks.