Nigeria To Sanction Companies Not Using Employees Compensation Scheme


In a move to strengthen regulations governing workers’ rights in the country, the federal government is to sanction companies, multinationals and big chip organisations operating in the country without the enrollment of their workforce for the Employees Compensation Scheme (ECS) which is implemented by the Nigerian Social Insurance Trust Fund (NSTIF).

Indications emerged in Abuja that companies that fail to enroll their workers for the ECS by the NSITF would soon be made to face stiff sanctions, including heavy fines as recently witnessed with the fining of MTN and Guinness.

At a briefing, the Minister of Labour and Productivity, Dr Chris Ngige, charged the NSITF management to go hard on defaulters, stating that,  there is need to review the ECS Act 2010 to include more stringent penalties for employers who fail to register their employees in the scheme.

The minister lamented that the level of compliance is still low after over four years of implementation. He stated that he is yet to hear of prosecution of employers for non-compliance.



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