The National Industrial Court of Nigeria (NICN), Awka Judicial Division, has delivered a landmark judgment in favour of the Nigeria Social Insurance Trust Fund (NSITF), reinforcing compliance with the Employees’ Compensation Act (ECA), 2010.
In its ruling delivered on June 4, 2026, in Suit No. NICN/AWK/56/2025, the court upheld claims filed by the NSITF against the Anambra State Investment Promotion and Protection Agency (ANSIPPA), affirming the agency’s statutory obligations under the Act.
The court declared that ANSIPPA qualifies as an employer within the meaning of the Employees’ Compensation Act and is therefore required by law to make monthly contributions to the Employees’ Compensation Fund, maintain accurate payroll records, and comply with all provisions relating to employee compensation and workplace injury protection.
As part of the judgment, the court ordered NSITF inspection officers to carry out a comprehensive assessment of the agency to determine the extent of its compliance with the law. It further held that any liabilities established during the inspection and assessment process would be binding on the agency and payable in line with statutory provisions.
The court also awarded litigation costs of N500,000 against ANSIPPA.
The case was prosecuted on behalf of the NSITF by legal practitioner, Onunkwo Petermaximus Emeka.
Legal Precedent
The judgment is being viewed by labour and legal stakeholders as a significant boost to the enforcement of the Employees’ Compensation Act, which provides compensation and protection for workers against occupational hazards, workplace injuries, disabilities and work-related deaths.
The court’s decision reaffirmed that all employers covered under the law, including government agencies, public institutions, corporate organisations and private-sector establishments, are required to comply with mandatory contribution and reporting obligations under the Employees’ Compensation Scheme.
The ruling is also expected to strengthen the enforcement powers of the NSITF, the federal agency charged with administering the scheme and safeguarding workers’ welfare across the country.
Reacting to the judgment, the NSITF Branch Manager in Awka, Barrister Gabriel Akubueze, described the decision as a major milestone in efforts to ensure employer compliance with labour protection laws.
According to him, the judgment sends a strong message to organisations that have failed to meet their obligations under the Employees’ Compensation Scheme, demonstrating that the courts can compel non-compliant employers to submit to statutory inspections, assessments and the payment of liabilities established under the law.
Officials of the Fund welcomed the verdict, describing it as a validation of the NSITF’s commitment to protecting workers’ rights and strengthening social security mechanisms within Nigeria’s labour sector.
Observers say the judgment is expected to serve as an important legal precedent for future enforcement actions aimed at expanding compliance with workers’ compensation requirements and improving workplace safety standards nationwide.
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