Embrace ECS Scheme for Industrial Harmony, NSITF MD Urges Employers

By Chinedu Echianu

Employers in Nigeria have been urged to embrace the Employees Compensation Scheme (ECS) as a critical tool for promoting industrial harmony and workplace productivity.

Managing Director of the Nigeria Social Insurance Trust Fund (NSITF), Barrister Oluwaseun Faleye, made the call on Wednesday in Abuja during a courtesy visit by the leadership of the Oil Producers Trade Sector (OPTS) of the Lagos Chamber of Commerce to his office.

Responding to concerns raised by the OPTS delegation, Faleye stressed that employers must do more to enlighten their workers on existing welfare policies, noting that such awareness would help reduce grievances and boost productivity.

“You need to highlight your efforts at meeting their welfare demands through compensation schemes, health benefits and other support, and tie this to outputs,” he said. “Workers’ demands are not always about salary increases; often, the assurance of their future takes priority.”

The NSITF boss further advocated making compliance with the Employees Compensation Act (ECA) a prerequisite for awarding contracts, stressing that employers have a duty to ensure sub-contractors, suppliers, and other partners also comply by enrolling their workers in the ECS to avoid vicarious liabilities.

Earlier, leader of the OPTS delegation, Steve Ojeh, commended Faleye’s leadership and highlighted opportunities for collaboration between both organisations. He, however, expressed concerns over proposals to raise ECS contributions beyond the current 1% threshold and to expand the scheme’s scope beyond basic salary, housing, and transport allowances.

Established under the Employees Compensation Act, 2010, the ECS provides compensation for workers who suffer work-related injuries, diseases, disabilities, or death, at no direct cost to employees. By law, employers are required to contribute 1% of their gross payroll to the scheme.

Faleye reaffirmed his commitment to continuous advocacy, adding that instilling a culture of health, safety, and environmental consciousness in Nigerian workplaces remains central to the NSITF’s mission.