THE SENATE on Tuesday passed for second reading a bill to repeal the Nigeria Social Insurance Trust Fund (NSITF) and the Employees’ Compensation Act (ECA), to enact the Nigeria Social Security Trust Fund Act 2025.
This followed presentation of the general principles of the bill at plenary on Tuesday by sponsor of the bill, Sen. Fasuyi Cyril (APC-Ekiti).
The bill seeks to consolidate both acts to make provisions for compensations for any death, injury, disease or disability, arising out of or in the course of work in the public and private workplaces.
Fasuyi, while presenting the general principles of the bill said that the bill would consolidate the provisions of both acts into a single comprehensive legislation and establish the Nigeria Social Security Trust Fund.
According to him, the purpose of the consolidation is to harmonise the existing laws on social insurance, employees’ compensation and ultimately eliminate duplication of functions.
He said that the bill would create a unified legal framework for the management of social security in Nigeria.
“The bill will ensure effective protection of employees in both formal and informal sectors against workplace injuries, disabilities, unemployment, retirement and other contingencies that may threaten their livelihood.
“The objectives of the bill are to harmonise existing laws by consolidating the provisions of Nigeria Social Insurance Trust Fund Act and the Employees Compensation Act into one unified legal framework.
“To establish the Nigeria Social Security Trust Fund as a central institution for management, administration and disbursement of social security funds in Nigeria.”
He said that the bill would expand social protection coverage ensuring that workers in both formal and informal sectors benefit from schemes, while addressing employment injuries, disabilities, unemployment, retirement and health costs contingencies.
Fasuyi said that the bill guaranteed sustainable financing through the pulling of contribution from employers, employees, government and other approved sources for the effective management of social security.
He also said that the bill has the objective to ensure accountability and transparency by streamlining governance, structure and eliminating duplication of functions in the administration of social security.
Fasuyi said that the bill aligned with international best practices in labour protection, social insurance and consistent with international labour organisation standards and global social security norms.
Supporting the bill, Sen. Adams Oshiomhole (APC-Edo), said that the bill sought to solve the confusion on management and administration of social security matters.
He said that the bill was consistent with government’s commitment to reduce overhead and avoid internal conflict of jurisdiction by management of social insurance trust fund.
Other lawmakers who supported the second reading of the bill were Sen. Simon Lalong (APC-Plateau, Diket Plang (APC- Plateau) and Victor Umeh (LP -Anambra).
President of Senate, Godswill Akpabio after second reading of the bill, referred it to Committee on Labour, Employment and Productivity for further legislative inputs and to revert back in four weeks. (NAN)
