To ensure the Employees' Compensation Act(ECA), achieve its desired impact of improved welfare of workers and safety at the workplace, the Nigeria Social Insurance Trust Fund (NSITF), has advocated for movement of institutional accountability from persuasion to enforcement.
In the same vein, the fund called for stronger legal backing which will lead to the review of enforcement provisions on the ECA to increase penalties for defaulters.
This was the submission of the Managing Director and Chief Executive of the Fund, Barrister Oluwaseun Faleye speaking through the Abuja Regional Manager, Mrs. Bridget Ashang at the annual conference of the Labour Correspondents Association of Nigeria, (LACAN) in Abuja Thursday.
In a paper titled, "Employees' Compensation Enforcement: Issues and Challenges in the Oil and Gas Industry," the NSITF's boss said, "In the oil and gas industry, where operations involve high capital, complex processes, and significant occupational hazards, the protection of workers through a strong and enforceable compensation mechanism is not only a statutory obligation — it is a moral duty and an ethical necessity."
"The Employees’ Compensation Act of 2010 was a bold, visionary step by government to protect Nigerian workers against the hazards of their occupations. It replaced the old Workmen’s Compensation regime with a no-fault, employer-funded social insurance system, a safety-net against deprivation and income insecurity."
"In the oil and gas sector, Nigeria’s economic mainstay, this mandate takes on an even deeper urgency. Here, the risks are higher, the stakes greater, and the consequences of neglect, often
devastating."
Providing insight to the challenges of enforcement in the sector, Barrister Faleye enumerated non compliance and evasion, outsourcing and casualisation of workers, low awareness and weak sanctions, as well as poor safety culture in the sector.
To combat these problems, the Managing Director explained that the Fund had instituted numerous reforms including periodic inspection of employers records and documents, digitalization of registration and remittance processes, simplification of claims and compensation process, aggressive engagements with stakeholders, inter-agency collaborations and Safety and health measures to prevent workplace hazards.
Going forward, Barrister Faleye called for a review of enforcement provisions in the ECA to increase penalties for defaulters. He further advocated mandating ECS compliance as a precondition for licensing or renewal, and a unified labour data system for seamless monitoring. In addition, he recommended empowerment of labour inspectors through training and resourcing to penetrate even the most remote installations and naming and shaming of defaulters.
The Employees' Compensation Act(ECA) 2010 established the Employees' Compensation Scheme (ECS) with and saddled the Nigeria Social Insurance Trust Fund (NSITF) with the mandate of providing fair and adequate compensation, reorientation, and rehabilitation for workers and dependents of workers and dependents of workers who suffer injuries, diseases, disabilities, and death in the course of work in exchange for payment of one percent Employees' salaries by the employer.