FG boosts social security for workers as beneficiaries get N172.5m
The Federal Government has expressed concern over the low enrollment of workers into the Employee Compensation Scheme (ECS), fifteen years after the enactment of the Employees Compensation Act (ECA) in 2010. Speaking at a two-day retreat for the National Assembly Joint Committee on Employment, Labour and Productivity, the Minister of Labour and Employment, Dr. Muhammad […]
The Federal Government has expressed concern over the low enrollment of workers into the Employee Compensation Scheme (ECS), fifteen years after the enactment of the Employees Compensation Act (ECA) in 2010.
Speaking at a two-day retreat for the National Assembly Joint Committee on Employment, Labour and Productivity, the Minister of Labour and Employment, Dr. Muhammad Maigari Dingyadi, described the situation as detrimental to Nigeria’s social protection goals.
The retreat held in Lagos with the theme, “Strengthening Social Security and Enhancing Labour Productivity in Nigeria” was organized by the Nigeria Social Insurance Trust Fund (NSITF) to strengthen collaboration between the executive and legislature on labour and productivity issues.
He spoke just as the Fund has recorded an exponential growth in the enrolment of employers and employees into the scheme.
As at March 2025, enrollment climbed to 183, 528 employers and 7,616,476 employees for the formal sector while for the informal sector spanning SMEs and co, the number of registered SMEs grew from 1,665 to 2,279.
Similarly, contribution collection increased from over N130m in the previous year to more than N376m, representing a 187% increase.
Also, for the June-July compensation, NSITF disbursed N172.5m to seven beneficiaries covering death benefits and medical reimbursements.
Despite the results, the Minister said there is the need to have more employers and employees in the scheme, adding, “It is saddening to note that fifteen years since the ECA came into law, enrollment into the scheme remains low, turning many breadwinners to liabilities with a bleak future for them and their dependents.”
The minister called on lawmakers to amend existing laws and pass key bills, including the Occupational Safety and Health Bill and a reviewed NSITF Act, to align with the provisions of the Employees Compensation Act.
The NSITF Managing Director, Barr. Oluwaseun Faleye, also underscored the urgency of enforcing ECS compliance across all tiers of government.
He noted that while ECS is gaining traction in the private sector, public sector compliance—especially at the state and local government levels—remains low or non-existent.
“If we all agree that workers are the bedrock of our economic growth, then we must ensure their welfare, wellbeing, and safety,” Faleye said. “Can you imagine the impact if employees in over 774 local governments, 36 states, and the FCT are assured of the safety net that ECS provides?”
Faleye described the retreat as a “working mission” aimed at reforming how governance and oversight can reinforce the values of safety, inclusion, and justice in Nigeria’s labour system.
He thanked the National Assembly committees for their support and urged them to help mainstream ECS through legislative action.
“The future of social protection in Nigeria is not written in stone. It is written in the decisions we make today, in this room, at this retreat,” he added.
Chairman of the NSITF Board, Shola Olofin, noted that the future of work
“demands data-driven policies and stronger institutional collaboration.”
“At NSITF, we view our responsibility not as charity but as a duty to ensure dignity, compensation, and protection for all workers,” he said.