NASS Members to Champion ECS Compliance Across States, LGs

By:Chinedu Echianu

Senators and members of the House of Representatives have resolved to engage state governors and local government chairmen to ensure full participation in the Employees’ Compensation Scheme (ECS), in a bid to expand coverage across all tiers of government.

This was part of far-reaching resolutions adopted at the end of a two-day strategic retreat for the Senate and House Committees on Labour, Employment and Productivity, organized by the Nigeria Social Insurance Trust Fund (NSITF) in Lagos between August 4 and 5.

In a communique jointly signed by Senator Diket Plang, Hon. Adegboyega Adefarati, NSITF Board Chairman Hon. Olushola Olofin, and NSITF Managing Director/CEO Barr. Oluwaseun Faleye, the lawmakers pledged to ensure that provisions for ECS contributions are captured and adequately funded in the annual budgets of all Ministries, Departments, and Agencies (MDAs).

The retreat, which was focused on strengthening social security and improving labour productivity, also saw the NSITF Management commit to prioritising the prevention of workplace and work-related accidents through intensified safety oversight and training.

The communique also highlighted several critical steps to be taken by both the National Assembly and NSITF. These include:

Lawmakers engaging state and local governments to enforce ECS compliance.

Collaboration with Appropriation Committees to ensure ECS funding is included in MDA budgets.

Strengthening NSITF operations through full digital transformation.

Aligning the Fund’s governance with International Social Security Association (ISSA) standards to enhance transparency and accountability.

The NSITF was also directed to immediately convene a stakeholders’ retreat on the ECS amendment bill currently before the National Assembly, ahead of its public hearing.

Participants at the retreat commended the NSITF for a significant increase in employer registration and compliance over the past year. The number of processed claims has reportedly doubled, pointing to both improved efficiency in claims management and a rising trend of workplace incidents.

However, the communique lamented the limited participation of state and local governments in the ECS, resulting in a large coverage gap. It also observed that most MDAs fail to allocate funds for ECS contributions during budget planning, an oversight the lawmakers vowed to correct through legislative measures and sensitization efforts.

The retreat emphasized the need for bold reforms to address structural gaps in Nigeria’s social security systems. Among these is the urgent necessity for a long-overdue actuarial valuation of the Fund to assess its financial sustainability and adequacy of contributions.

It also reiterated support for the proposed repeal and replacement of the existing NSITF and ECS Acts with a comprehensive legal framework that better aligns with international best practices and meets the evolving needs of Nigerian workers.

The communique concluded with a sobering reminder that every compensation claim represents human suffering and disruption. It stressed the importance of shifting the ECS’ focus from reactive compensation to proactive accident prevention, safety education, and workplace risk management.

“Every claim paid under the ECS represents a story of pain and loss suffered by a worker and their family. This underscores the urgent need to prioritise preventive strategies, workplace safety programs, and proactive risk management to minimize accidents and safeguard lives,” it read.

As efforts to overhaul the ECS framework gather momentum, stakeholders say the combined commitment of the legislature, the NSITF, and the Ministry of Labour and Employment offers new hope for a safer and more secure working environment for Nigerians across all sectors.