NSITF Wins Landmark Court Battle, Tightens Noose on Defaulting Employers

"ANSIPPA qualifies as an employer under the Employees’ Compensation Act and is therefore obligated to make monthly contributions to the Employees’ Compensation Fund, maintain accurate payroll records, and fulfil all statutory requirements relating to workers’ compensation and workplace injury protection." National Industrial Court of Nigeria.

..... "Authorised NSITF inspection officers to conduct a comprehensive assessment of the agency to determine the extent of its compliance with the law."

The Nigeria Social Insurance Trust Fund (NSITF) has secured a landmark legal victory following a judgment by the National Industrial Court of Nigeria (NICN), Awka Judicial Division, reinforcing the mandatory compliance provisions of the Employees’ Compensation Act (ECA), 2010.

In a ruling delivered on June 4, 2026, in Suit No. NICN/AWK/56/2025, the court upheld claims brought by the NSITF against the Anambra State Investment Promotion and Protection Agency (ANSIPPA), declaring that the agency is legally bound to comply with the Employees’ Compensation Scheme (ECS).

The court held that ANSIPPA qualifies as an employer under the Employees’ Compensation Act and is therefore obligated to make monthly contributions to the Employees’ Compensation Fund, maintain accurate payroll records, and fulfil all statutory requirements relating to workers’ compensation and workplace injury protection.

In a significant aspect of the judgment, the court authorised NSITF inspection officers to conduct a comprehensive assessment of the agency to determine the extent of its compliance with the law. The court further ruled that any liabilities established during the inspection process would be binding on the agency and payable in accordance 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.

Labour and legal stakeholders have described the judgment as a major boost to the enforcement of the Employees’ Compensation Act, a legislation designed to provide compensation and protection for workers against occupational hazards, workplace injuries, disabilities and work-related deaths.

Observers note that the ruling reinforces the position that all employers covered by the Act—including government agencies, public institutions, corporate organisations and private-sector establishments—must comply with mandatory contribution and reporting obligations under the Employees’ Compensation Scheme.

The judgment is also expected to strengthen the enforcement powers of the NSITF, the federal agency responsible for administering the scheme and protecting workers’ welfare nationwide.

Reacting to the verdict, NSITF Branch Manager in Awka, Barrister Gabriel Akubueze, described the decision as a watershed moment in the drive to ensure compliance with labour protection laws.

According to him, the ruling sends a clear warning 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 arising from such evaluations.

Officials of the Fund welcomed the judgment as a validation of NSITF’s commitment to safeguarding workers’ rights and deepening social security protection for employees across Nigeria.

Industry observers believe the decision will serve as a powerful legal precedent for future enforcement actions, potentially accelerating compliance with workers’ compensation requirements and strengthening workplace safety standards across the country.