By Olugbenga Salami
Senate has passed for second reading a
bill to repeal the Nigeria Social Insurance Trust Fund, NSITF and the Employees’ Compensation Acts, to enact the Nigeria Social Security Trust Fund Act, 2025 with a view to ensuring effective protection of employees in both formal and informal sectors against workplace injuries, disabilities, unemployment, retirement and other contingencies that may threaten their livelihood.
Specifically, the bill would provide for compensations for any death, injury, disease or disability, arising out of or in the course of work in the public and private workplaces.
The passage followed the presentation of the general principles of the bill at plenary on Tuesday by its sponsor, Senator Cyril Fasuyi (APC Ekiti North), who explained that the piece of legislation would consolidate the provisions of both acts into a single comprehensive legislation and establish the Nigeria Social Security Trust Fund.
The consolidation, he said, was meant to harmonise the existing laws on social insurance, employees’ compensation and ultimately eliminate duplication of functions, adding that the bill would create a unified legal framework for the management of social security in the country.
He said: “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.”
Senator Fasuyi added 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, and unemployment, retirement and health costs contingencies.
According to him, the bill guaranteed sustainable financing through the pulling of contributions from employers, employees, government and other approved sources for the effective management of social security.
In his contribution, Senator Adams Oshiomhole (APC Edo North), 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 the government’s commitment to reduce overhead and avoid internal conflict of jurisdiction by management of social insurance trust funds.
President of the Senate, Senator Godswill Akpabio after second reading of the bill, referred it to the Committee on Labour, Employment and Productivity for further legislative inputs and to revert back in four weeks.
