NSITF Seeks Tougher Penalties on Employers Failing To Remit Employee Compensation

The managing director/chief executive of the Nigeria Social Insurance Trust Fund (NSITF), Oluwaseun Faleye, has demanded tougher sanctions against defaulters of employees compensation entitlements.

Reiterating his damand for stronger judicial interpretation, he called for adjudication and enforcement of the Employees’ Compensation Act (ECA) 2010 to ensure that Nigerian workers receive the justice and compensation guaranteed by law.

Faleye made the call at the opening ceremony of of the NSITF 2026 Legal Stakeholders’ Engagement in Abuja, where he urged the judiciary, employers, organised labour and other stakeholders to strengthen the legal and institutional mechanisms for protecting workers who suffer workplace injuries, diseases, disabilities or death.

The two-day engagement, themed “Enhancing Judicial Interpretation, Adjudication and Enforcement under the Employees’ Compensation Act (ECA), 2010,” seeks to address the challenges preventing workers from fully enjoying the benefits provided under the law.

Faleye explained that while the previous edition of the engagement focused on strengthening collaboration for the sustainable administration of the Employees’ Compensation Scheme, this year’s discussions centre on translating statutory rights into practical justice for affected workers.

He noted that workplace accidents often trigger far-reaching human, financial, emotional and social consequences, particularly for workers and their families who depend on their earnings for survival.

According to him, the law provides a framework for protecting employees, but its existence alone does not guarantee that workers will receive the compensation and support they deserve.

“The existence of a law does not by itself guarantee that its promise will be fulfilled,” he said, stressing the need for effective interpretation, fair adjudication and enforcement of judicial decisions under the ECA.

The NSITF helmsman identified the three stages as critical to the effectiveness of the Employees’ Compensation Scheme, explaining that the provisions of the law must be interpreted in line with their wording, purpose and legal context.

He added that disputes must be resolved fairly, based on evidence and applicable laws, without unnecessary delays, while lawful judgments and orders must be enforced to ensure that justice extends beyond court pronouncements.

Faleye warned that weaknesses at any of these stages could undermine confidence in the entire compensation system and deny workers the practical benefits of their statutory entitlements.

According to him, judicial decisions help clarify the rights and obligations of workers and employers, guide workplace conduct and establish precedents that influence the resolution of future compensation claims.

He maintained that workers need assurance that legitimate claims will be addressed, while employers require a predictable legal environment in which their obligations are determined fairly.

Faleye reaffirmed the NSITF’s commitment to strengthening its administrative processes, improving claims handling, promoting awareness of the scheme and encouraging employers to comply with the provisions of the Act.

However, he acknowledged that the Fund could not achieve these objectives alone, calling for stronger cooperation among the judiciary, government institutions, employers, labour unions and other stakeholders.

He urged participants to make the engagement more than a ceremonial gathering by identifying practical solutions, clarifying areas of legal uncertainty, reducing avoidable disputes and improving compliance with the law.

“The value of a stakeholder engagement lies not merely in the quality of speeches delivered but in the clarity of understanding it produces and the improvements that follow,” Faleye said.

He called for frank and constructive deliberations that would generate actionable recommendations to strengthen the administration of the Employees’ Compensation Scheme
Faleye reaffirmed the NSITF’s commitment to strengthening its administrative processes, improving claims handling, promoting awareness of the scheme and encouraging employers to comply with the provisions of the Act.

However, he acknowledged that the Fund could not achieve these objectives alone, calling for stronger cooperation among the judiciary, government institutions, employers, labour unions and other stakeholders.

He urged participants to make the engagement more than a ceremonial gathering by identifying practical solutions, clarifying areas of legal uncertainty, reducing avoidable disputes and improving compliance with the law.

“The value of a stakeholder engagement lies not merely in the quality of speeches delivered but in the clarity of understanding it produces and the improvements that follow,” Faleye said.

He called for frank and constructive deliberations that would generate actionable recommendations to strengthen the administration of the Employees’ Compensation Scheme