The Nigerian Senate has passed for second reading a bill to repeal the Nigeria Social Insurance Trust Fund (NSITF) and the Employees’ Compensation Acts and to enact the Nigeria Social Security Trust Fund Act 2025.
This followed the presentation of the general principles of the bill at plenary on Tuesday by the sponsor of the bill, Senator Fasuyi Cyril (APC-Ekiti).
The bill seeks to consolidate both acts to make provisions for compensation for any death, injury, disease or disability arising out of or in the course of work in the public and private workplaces.
Senator Fasuyi, presenting the general principles of the bill, would consolidate the provisions of both acts into a single comprehensive legislation and establish the Nigeria Social Security Trust Fund.
According to him, the purpose of the consolidation is to harmonise existing laws on social insurance, employees’ compensation and ultimately eliminate duplication of functions.
He said the bill would create a unified legal framework for the management of social security in Nigeria.
“The bill will ensure effective protection of employees in both formal and informal sectors against workplace injuries, disabilities, unemployment, retirement and other contingencies that may threaten their livelihood.
“The objectives of the bill are to harmonise existing laws by consolidating the provisions of the Nigeria Social Insurance Trust Fund Act and the Employees Compensation Act into one unified legal framework.
“And establish the Nigeria Social Security Trust Fund as a central institution for management, administration and disbursement of social security funds in Nigeria”.
He said the bill would expand social protection coverage, ensuring that workers in both formal and informal sectors benefit from schemes while addressing employment injuries, disabilities, unemployment, retirement and health cost contingencies.
Senator Fasuyi said the bill guaranteed sustainable financing through the pulling of contributions from employers, employees, government and other approved sources for the effective management of social security.
He also said the bill has the objective to ensure accountability and transparency by streamlining the governance structure and eliminating duplication of functions in the administration of social security.
Senator Fasuyi said the bill aligned with international best practices in labour protection and social insurance and was consistent with International Labour Organisation standards and global social security norms.
Supporting the bill, Senator Adams Oshiomhole (APC-Edo) said the bill sought to solve the confusion on the management and administration of social security matters.
He said the bill was consistent with the government’s commitment to reduce overhead and avoid internal conflict of jurisdiction by the management of the social insurance trust fund.
Other lawmakers who supported the second reading of the bill were Senator Simon Lalong (APC-Plateau), Senator Dicket Plank (APC-Plateau) and Senator Victor Umeh (LP-Anambra).
President of the Senate, Senator Godswill Akpabio, after the second reading of the bill, referred it to the Committee on Labour, Employment and Productivity for further legislative input and to revert in four weeks.