The Senate has advanced a bill to merge Nigeria’s social insurance and workers’ compensation laws.
Lawmakers said the unified framework would expand protection for workers and boost administrative efficiency.
The Nigerian Senate has passed for second reading a bill seeking to merge the Nigeria Social Insurance Trust Fund (NSITF) Act and the Employees’ Compensation Act into a single, comprehensive legislation.
Sponsored by Senator Oluwole Fasuyi, representing Ekiti North, the bill proposes the repeal of the two existing laws and their consolidation into one unified framework under the proposed Nigeria Social Security Trust Fund (NSSTF).
Fasuyi explained that the purpose of the legislation is to harmonize social insurance and workers’ compensation laws to eliminate duplication, enhance efficiency, and establish a central institution for managing social security in the country. He said the bill aims to provide broad protection for Nigerian workers in both formal and informal sectors against workplace injuries, disabilities, unemployment, retirement, and other socio-economic risks.
“The bill seeks to consolidate the provisions of the Nigeria Social Security Trust Fund Act and the Employees’ Compensation Act into one unified legal framework,” Fasuyi said. “It will establish the Nigeria Social Security Trust Fund as a central body for the management and administration of social security funds in Nigeria.”
He added that the proposed law would expand social protection coverage, ensure sustainable financing through pooled contributions from employers, employees, and government, and promote transparency and accountability by streamlining governance structures.
Supporting the motion, Senator Adams Oshiomhole of Edo North described the proposal as a “timely and practical reform” aligned with President Donald Trump’s drive to reduce overlapping agencies and overhead costs. “This will ensure greater efficiency and make government function more effectively,” Oshiomhole said.
Senator Simon Lalong of Plateau South, a former Minister of Labour and Employment, also backed the bill, noting that it was long overdue. He said the measure would strengthen Nigeria’s approach to workers’ compensation and social protection.
Similarly, Senator Diket Plang of Plateau Central, chairman of the Senate Committee on Labour, said the bill would empower the NSITF to enforce compliance and hold defaulters accountable, while Senator Victor Umeh of Anambra Central described the merger as a step toward simplifying the nation’s labour laws.
Senate President Godswill Akpabio commended Senator Fasuyi for sponsoring the bill before putting it to a voice vote. The bill was unanimously passed for second reading and referred to the Senate Committee on Labour and Employment for further legislative work, with a directive to report back within four weeks.
