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Home Business news

FG Decries Low Enrollment in Employee Compensation Scheme Despite 15-Year Law

Victoria Emeto by Victoria Emeto
August 5, 2025
in Business news
0

The Federal Government has raised concerns over the persistently low enrollment in the Employee Compensation Scheme (ECS), fifteen years after the Employees Compensation Act (ECA) was enacted in 2010.

Speaking during a two-day retreat in Lagos for the National Assembly Joint Committee on Employment, Labour and Productivity, Minister of Labour and Employment, Dr. Muhammad Maigari Dingyadi, described the situation as a setback to Nigeria’s broader social protection goals.

The retreat, themed “Strengthening Social Security and Enhancing Labour Productivity in Nigeria,” was organized by the Nigeria Social Insurance Trust Fund (NSITF) to bolster collaboration between the executive and legislature in addressing labour issues.

Despite the Minister’s concern, recent data from the NSITF indicates growing participation. As of March 2025, formal sector enrollment had increased to 183,528 employers and 7,616,476 employees. In the informal sector, particularly among Small and Medium Enterprises (SMEs), registered participants rose from 1,665 to 2,279.

Dr. Dingyadi emphasized the need for improved awareness and enforcement to ensure greater compliance, noting that increased participation is vital to achieving universal coverage and protection for Nigerian workers.

Tags: #EmployeeCompensation#LabourNigeria#NSITF#SocialProtection
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