The Employee Compensation Act (ECA) of 2010 was enacted to provide a transparent and fair system that guarantees compensation and rehabilitation for employees who suffer work-related injuries, illnesses, disabilities, or death in Nigeria. The Act also aims to:

• Maintain a financially solvent compensation fund
• Ensure fair and adequate contributions from employers
• Establish a simple and accessible appeals process
• Encourage collaboration and prevention of workplace accidents and disabilities

How the Scheme Is Funded

The scheme is funded by employers, who are required to contribute 1% of their total payroll to the Nigeria Social Insurance Trust Fund (NSITF)—the federal agency that manages and disburses compensation under the Act. No contribution is required from employees.

As of July 2025, NSITF reports:

• Over 150,000 registered employers
• More than 100,000 claims paid, including death and disability benefits
• Over 2,000 prosthetic fittings for injured workers

What the ECA 2010 Guarantees

According to the ECA 2010—and reiterated by the NSITF—the scheme provides:

1. Periodic compensation to employees or their dependants for any death, disability, injury, or disease arising out of or in the course of employment
2. Reimbursement of medical expenses for work-related injuries
3. Counselling and vocational rehabilitation for permanently injured employees
4. Prosthetic support for employees with long-term disabilities
5. A simple and fair claims process
6. A no-fault scheme, meaning compensation is paid regardless of who was at fault
7. A solvent fund that guarantees payment of benefits, regardless of the employer’s financial status at the time of the claim
8. Universal coverage for all employees in Nigeria—excluding members of the Armed Forces

Filing a Claim with NSITF

If you or a loved one sustains a work-related injury or disease, you have the right to file a claim with NSITF. Here’s what you should know:

• Time Limit: Injury should be reported to the employer within 14 days and a claim must be filed with NSITF within one year of the incident.
• Exceptions: Extensions may be granted in exceptional cases, if justified.
• Off-Site Injuries: You’re entitled to compensation for any injury sustained while performing official duties, even if it occurs outside your regular workplace, as long as it would have qualified if it happened on-site.

What You Should Do

• Employees: Ask your employer if they are registered with NSITF and compliant with the ECA 2010.
• Injured Workers or Families: If a workplace incident occurs, report it promptly and file a claim with NSITF to access benefits.

Compensation Benefits Include:

• Up to 90% of the employee’s last salary payable to dependents in the case of death
• Varying levels of compensation based on the extent of injury or disability

Why Employers Should Register

Employers who register and contribute to NSITF enjoy protection under the ECA 2010. Registration may:

• Preclude employees from suing the employer directly in the event of injury
• Be a requirement for eligibility in government and private sector contracts

Final Thoughts

Every worker deserves peace of mind knowing they’ll be cared for if something goes wrong on the job. Understanding your rights and responsibilities under the Employee Compensation Act 2010—whether you’re an employee or employer—helps promote workplace safety, compliance, and access to timely compensation.