ENHANCING WORKPLACE SAFETY AND SOCIAL PROTECTION: THE ROLE OF THE EMPLOYEES’ COMPENSATION ACT, 2010
Presentation by
Barr. Oluwaseun M. Faleye
Managing Director/Chief Executive, Nigeria Social Insurance Trust Fund
At the 65th Annual General Conference of the Nigerian Bar Association (NBA)
International Conference Centre, Enugu
24th August 2025
Introduction
Distinguished colleagues, esteemed members of the Bench and Bar, fellow policymakers, captains of industry, and ladies and gentlemen.
It is both an honour and a privilege to stand before this distinguished assembly at the 65th Annual General Conference of the Nigerian Bar Association. The NBA has, over decades, remained the conscience of our nation, a defender of rights, a champion of justice, and a custodian of the democratic ideals that gives meaning to our collective existence.
The theme of this year’s conference, “Stand Out, Stand Tall!” is more than a slogan. It is a call to courage, to excellence, and to visionary leadership. It challenges us, as thought-leaders and nation-builders, to lift our society beyond mediocrity and to confront the existential issues that hinder Nigeria’s march toward greatness.
I stand today to speak directly to one of those existential issues, the safety of our workplaces and the social protection of our workers. These are not peripheral concerns; they touch the very core of our humanity, our economy, and our pursuit of sustainable national development.
In focusing on “Enhancing Workplace Safety and Social Protection: The Role of the Employees’ Compensation Act, 2010,” I aim to situate our conversation at the intersection of law, labour, and human dignity.
Work is not merely an economic activity; it is central to human identity and social progress. Through work, families are sustained, communities are developed, and nations are built. The dignity of labour, so deeply rooted in our cultural and constitutional ethos, affirms that every worker deserves protection, not just in the fruit of their labour, but also in the very process of labouring.
Yet, the paradox remains: while work empowers, it can also endanger. The same factories that generate wealth can expose workers to industrial hazards; the same oil rigs that earn foreign exchange can subject workers to occupational illnesses; the same construction sites that build our cities can also claim lives in accidents.
This paradox highlights the urgency of workplace safety and the necessity of social protection. It is not enough for a nation to pursue economic growth; such growth must be inclusive, humane, and protective of those whose sweat oils the engines of development.
The Global Context: Grim Realities of Workplace Hazards
Permit me to share with you the grim realities of workplace hazards, and these statistics are not mine; they were provided by the International Labour Organization:
Each year, over 2.8 million workers die from occupational accidents and work-related diseases.
Over 374 million workers suffer non-fatal injuries annually, many of which lead to long-term disabilities or reduced quality of life.
The economic cost of poor occupational safety and health is estimated at nearly 4% of global GDP annually, a staggering burden on productivity, healthcare systems, and social welfare.
These statistics are not just numbers; they are human lives, families disrupted, and dreams shattered. They remind us that workplace safety is not a privilege to be enjoyed by a few but a right owed to all.
Within the context of our own country, our peculiar socio-economic realities make workplace safety and social protection even more urgent.
Data Gaps: Accurate national data on workplace accidents remains limited. However, the Nigeria Social Insurance Trust Fund, through its Employees’ Compensation Scheme, continues to receive increasing claims from affected workers and employers.
High-Risk Sectors: Industries such as construction, oil and gas, and manufacturing remain prone to frequent and sometimes fatal workplace accidents. Poor adherence to safety standards, inadequate enforcement, and limited awareness exacerbate the problem.
Informal economy Vulnerability: With over 80% of Nigeria’s workforce engaged in the informal economy, millions of workers remain outside structured occupational safety nets, leaving them and their families highly vulnerable in the event of accidents or diseases.
Cultural and Institutional Weaknesses: In many workplaces, safety culture is weak. Employers often see safety compliance as a cost rather than an investment, while workers themselves may lack training or incentives to prioritize safety.
The outcome of these realities is clear: rising workplace accidents, preventable occupational illnesses, and increasing claims for compensation. More importantly, the loss of human capital undermines national productivity and deepens poverty traps for affected families.
Why Workplace Safety and Social Protection Matter
Workplace safety and social protection are not optional luxuries; they are fundamental pillars of social justice, human dignity, and economic sustainability.
They ensure dignity, peace of mind, and assurance that one’s labour will not become a source of tragedy for one’s family.
They enhance productivity, reduce downtime due to accidents, and foster industrial harmony.
They reduce the burden on healthcare systems, mitigate poverty, and enhance national competitiveness.
In essence, workplace safety and social protection are as much about human rights as they are about economic development. A nation that fails to protect its workers fails to protect its future.
The Employees’ Compensation Act, 2010: A Paradigm Shift
The enactment of the Employees’ Compensation Act (ECA), 2010 marked a watershed moment in Nigeria’s labour and social security landscape. It replaced the Workmen’s Compensation Act, a law that had long been criticized for its narrow scope, rigidity, and employer-centric bias.
For decades, Nigerian workers and their families bore the brunt of a compensation system that failed to adequately recognize the evolving realities of modern workplaces. The law operated within the framework of an industrial era that no longer reflected the complex dynamics of contemporary employment relationships. Workers were often left destitute after workplace accidents, while employers faced prolonged litigation that neither restored the injured nor secured industrial harmony.
The ECA 2010 emerged as both a legal reform and a moral commitment, aligning Nigeria with international best practices, especially as recommended by the International Labour Organization (ILO) conventions on occupational safety, health, and social security.
1. Comprehensive Coverage
One of the most remarkable contributions of the ECA is its expansive scope.
It applies to all employers and employees across both the public and private sectors, creating a unified national standard.
It extends protection beyond physical accidents to include:
Occupational injuries sustained in the course of work.
Occupational diseases arising from exposure to harmful substances or hazardous environments.
Permanent and temporary disabilities, whether partial or total.
Mental health challenges linked to workplace stress, trauma, or hazards, an innovative inclusion that reflects global recognition of psychosocial risks.
By broadening its ambit, the ECA acknowledges the complex and evolving nature of work, ensuring that no worker is left behind simply because their injury or illness does not fit into a narrow definition.
2. Employer Contribution System
The ECA dismantled the inequitable structure of the past where individual employers bore sole liability for compensation. Under the Workmen’s Compensation Act, an employer had to directly compensate an injured worker, often leading to disputes, prolonged court cases, and financial strain.
In contrast, the ECA introduced a collective, pooled system where employers across sectors contribute to a central fund administered by the Nigeria Social Insurance Trust Fund. The Fund ensures that resources are available upfront to address claims promptly, rather than waiting for the outcome of litigation.
The pooled risk model reflects the principle of social solidarity, spreading risks and costs across the economy, rather than isolating them within a single workplace.
This mechanism not only secures workers’ rights but also protects employers from the unpredictability of individual liability. It shifts the focus from blame to shared responsibility.
3. Quick and Fair Compensation
The ECA was deliberately designed to speed up and humanize the compensation process.
Injured workers are entitled to immediate medical treatment without the burden of proving employer negligence. Beyond treatment, workers receive physical rehabilitation, vocational training, and support for reintegration into the workforce.
In cases of permanent or temporary disability, the law guarantees structured financial support. Dependents of workers who lose their lives in workplace accidents receive death benefits, ensuring families are not plunged into poverty.
This no-fault principle, where workers are compensated regardless of negligence, removes the adversarial tension of litigation. It prioritizes healing, dignity, and security over legal wrangling.
4. The Social Security Dimension
Perhaps the most transformative feature of the ECA is its broad social security orientation. Unlike its predecessor, the Act is not limited to post-accident compensation but also embraces prevention, rehabilitation, and reintegration.
5. A Balance between Rights and Responsibilities
The genius of the Employees’ Compensation Act lies in its balance.
For workers, it guarantees protection without the hurdles of litigation or the uncertainty of employer discretion. For employers, it eliminates the risk of crippling lawsuits and provides predictable contributions into a shared pool. For the nation, it strengthens social justice, reduces systemic poverty traps, and aligns Nigeria with international labour standards.
Thus, the ECA 2010 represents more than just legal reform, it is a paradigm shift towards a modern, inclusive, and humane labour ecosystem. It affirms that in Nigeria’s pursuit of growth, the lives and dignity of workers cannot be treated as expendable.
Current Realities and Challenges
Fifteen years after its enactment, the Employees’ Compensation Act 2010 has undoubtedly transformed Nigeria’s labour compensation framework. The establishment of a no-fault, pooled compensation system has brought hope to thousands of workers and their families. Yet, as with most legal and policy reforms, the journey from law on paper to lived reality has been uneven.
While progress has been recorded in claims processing, accident coverage, and legal clarity, several persistent and emerging challenges continue to undermine the Act’s full impact.
Low Employer Compliance
One of the most pressing realities is incomplete employer compliance, especially among Small and Medium-Sized Enterprises (SMEs).
Despite being the backbone of Nigeria’s economy, accounting for over 80% of jobs and nearly 50% of GDP, many SMEs either fail to register with the NSITF or under-declare their workforce size and wage bills.
Reasons for non-compliance include limited awareness of legal obligations, perceived cost burden of contributions and weak enforcement and monitoring mechanisms.
The result is that millions of workers in SMEs remain outside the protective umbrella of the Act, leaving them vulnerable to poverty traps in cases of workplace accidents.
This compliance gap undermines the spirit of universality and inclusivity envisioned by the law.
Limited Awareness Among Workers and Employers
A large proportion of Nigerian employees remain unaware of their rights under the Act.
Many workers do not know they are entitled to compensation in cases of occupational injury or disease. In some cases, employers exploit this ignorance by discouraging claims or providing token settlements instead of due benefits.
Even among educated workers, there is often confusion between ECA entitlements and other social protection schemes like pensions or health insurance.
Awareness campaigns have been sporadic, with limited penetration outside major cities. For a country with over 70 million workers in the informal and formal sectors combined, sustained national enlightenment is essential and we are committed to doing that to ensure that Nigerian workers understand their rights and the benefits associated with complying with the Employee’s Compensation Act.
Under-Reporting of Workplace Accidents
Another major challenge is the systemic under-reporting of workplace accidents and occupational diseases.
Many employers fear that reporting incidents will attract sanctions, regulatory scrutiny, or reputational damage.
Workers themselves sometimes avoid reporting for fear of losing their jobs, stigmatization, or bureaucratic delays in accessing benefits. This results in a data gap, making it difficult for policymakers and regulators to accurately assess the scope of occupational risks in Nigeria.
For instance, while the International Labour Organization estimates that 2.8 million workers die globally every year from work-related causes, Nigeria’s official records capture only a fraction of actual cases. The absence of reliable, comprehensive data limits the country’s ability to design targeted interventions.
Changing Work Dynamics in a New Economy
The world of work is changing rapidly, and Nigeria is no exception. The ECA 2010, while progressive, must continuously adapt to these evolving realities.
Platforms like ride-hailing services, delivery apps, and freelance digital work create new categories of workers who often fall outside traditional employer-employee relationships.
As I have mentioned, over 80% of Nigerian workers operate in the informal economy, where workplace safety standards are often non-existent. Extending the ECA’s protections to this vast segment remains a daunting but necessary task.
The COVID-19 pandemic accelerated remote work adoption, raising new questions about what qualifies as a “workplace accident” when work is performed from home.
With automation, robotics, and artificial intelligence entering workplaces, new categories of hazards, such as ergonomic injuries, mental stress, or even cyber-related risks are emerging.
These shifts demand dynamic legal interpretation and possible amendments to ensure that the ECA remains relevant in a rapidly changing labour market.
These realities highlight the need for multi-sector collaboration, linking labour law enforcement with broader economic reforms, social welfare, and national development strategies.
The Role of Lawyers and Policymakers
The implementation and impact of the Employees’ Compensation Act, 2010 cannot rest on the NSITF alone. Like every piece of transformative legislation, the ECA lives and breathes through the interpretation, advocacy, and enforcement carried out by lawyers, judges, and policymakers.
Apart from our expectation of you as advocates of the efficacy and importance of the Employees’ Compensation Scheme, the most crucial expectation we have of you lawyers and leaders of the bar here is to lead by example.
We must comply with the law ourselves. We must ensure that all law firms practicing law in Nigeria subscribe to the Employees’ Compensation Scheme.
As you all know, law practice, particularly those of our colleagues engaged in dispute resolution practices comes with its risks. Lawyers travel to different parts of this country practicing their trade, advocating and defending clients. These journeys come with risk.
For the corporate and commercial lawyers, they tend to sit for hours reviewing documents, negotiating agreements and also do a lot of traveling in the course of work. These long hours at work stations often leads back and spinal injuries.
Indeed, the pressure of work could sometimes lead not only to physical challenges but to mental stress as well. Yet, majority of our law firms are not complying with the Employees’ Compensation Scheme to give their employees, fellow lawyers the safety net the law prescribed and which they all deserve.
The NBA must do more and ensure that all law firms comply with the Employees’ Compensation Act to safeguard our workforce. And it is my hope that the Welfare Committee of the NBA will champion this initative.
We must ensure that evidence of compliance with the ECA becomes part of documentation for aspiring to be Senior Advocates. As part of the law firm inspection exercise towards the conferment of silk, I urge us to ask for evidence that law firms are complying with the Employees’ Compensation Act akin to our position on payment of pension obligations for lawyers.
Corporate lawyers are often the first point of contact for businesses seeking to understand their obligations under labour laws. It is therefore incumbent on them to educate employers, particularly SMEs on the necessity of compliance with the ECA, not only as a legal requirement but as a strategic business investment.
When disputes arise, lawyers must uphold the spirit of social justice embedded in the Act, ensuring that compensation claims are pursued diligently and without undue delay.
Beyond individual cases, the legal community must serve as advocates of systemic reform, engaging with government and civil society to strengthen workplace safety and employee protections.
The Nigerian Bar Association can serve as a bridge between policymakers and the workforce, ensuring that the law keeps pace with global best practices and local realities.
As to the role of the judiciary, we acknowledge that the courts play a pivotal role in giving life to the Act. Therefore, judicial interpretation must consistently reflect the protective, worker-centred philosophy of the ECA.
Landmark rulings can set precedents that discourage employers from evading responsibilities and embolden employees to seek justice without fear.
The judiciary must guard against narrow, technical interpretations that undermine the law’s purpose. Instead, it must elevate the principle that the protection of human dignity is paramount.
From the legislative perspective, our law makers must recognize that the labour market is evolving faster than ever before. Regular amendments to the ECA 2010, whether to address the gig economy, informal economy realities, or technological hazards, are necessary to maintain its relevance.
The ECA 2010, therefore, should not be viewed solely as a labour statute, but as a human rights instrument, a guarantee that every Nigerian worker deserves protection, dignity, and a safety net against the uncertainties of life.
The Future of Workplace Safety and Social Protection in Nigeria
Looking forward, the NSITF’s vision is to build a comprehensive social security architecture for Nigeria, with the ECA as its cornerstone. The Act laid the foundation, but the building of a resilient, inclusive, and future-ready system requires bold innovations.
The Fund is embracing technology-driven solutions to improve speed, transparency, and accountability.
Real-time reporting systems will allow employers and workers to instantly report accidents through digital platforms, ensuring quicker responses. Data analytics will enable predictive modelling, identify high-risk sectors and help prevent accidents before they happen.
E-certificates of compliance which we have already introduced, are reducing fraud and making compliance verification seamless.
The ECS’s future lies in creating innovative schemes tailored to suit the informal economy. Pilot projects are already exploring contributory micro-schemes that will allow even low-income workers to enjoy compensation and protection.
Extending coverage to the informal economy is not only a matter of justice but also of national productivity, since these workers drive much of Nigeria’s growth.
Compensation after injury is important, but prevention is better, cheaper, and more sustainable. The Fund is investing in workplace safety audits to identify risks early, we are undertaking compliance inspections with deterrent sanctions for violators and enhancing our capacity through programs, training employers and employees on global best practices in occupational safety and health (OSH).
By fostering a culture of prevention, Nigeria can reduce workplace accidents and improve productivity across sectors.
Nigeria must continue to harmonize with international standards by ratifying and implementing relevant ILO conventions on occupational safety and health. We must learn from other countries with mature compensation frameworks and systems.
We must leverage partnerships with global organizations to build capacity, fund safety initiatives, and modernize systems. These sorts of global alignment ensures that Nigerian workers are not left behind in an increasingly interconnected labour market.
Conclusion
Distinguished colleagues, learned friends, ladies and gentlemen, the Employees’ Compensation Act, 2010 is more than a statute on the books. It is a covenant of dignity, a shield of protection, and a beacon of social justice for the Nigerian worker.
It represents a promise, that when a worker is injured, they will not be abandoned; when a family loses its breadwinner, they will not be thrown into despair; and when an employer invests in safety, they will be rewarded with loyalty, productivity, and peace.
To truly “Stand Out, Stand Tall,” as this conference theme challenges us, we must rise above rhetoric and build a society where no worker leaves home in fear that their daily bread could cost them their life, no child is forced out of school because an injured parent can no longer provide and no widow or widower is left destitute because justice was delayed or denied.
This is not just about labour law, it is about the soul of our nation. A society that protects its workers protects its future. A nation that neglects its workforce undermines its destiny.
The call before us today is clear.
Lawyers must be the vanguard of compliance and justice, using their knowledge to protect the vulnerable.
Policymakers must be visionaries, ensuring that our laws evolve with the realities of modern work.
Employers must see safety and social protection not as costs, but as investments in their people and their productivity.
And institutions like the NSITF must continue to lead with innovation, transparency, and courage.
If we do this, we will build more than safe workplaces, we will build a safer Nigeria. We will do more than compensate accidents, we will prevent them. We will not just write laws; we will write legacies.
Together, we can build a Nigeria where every citizen can stand out in excellence and stand tall in dignity.
Thank you.
May God bless our workers.
May God bless the Federal Republic of Nigeria.
Oluwaseun Faleye
Managing Director/CE
Nigeria Social Insurance Trust Fund