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The short answer
Under the Employees' Compensation Act 2010, a registered employer reports a workplace injury to NSITF on the Notification of Accident form (ECS CCF01) with medical reports and, where relevant, a police report, and the no-fault scheme pays for treatment, income support, disability and death benefits. The employer's main costs are registration and a monthly contribution of 1% of total payroll; a registered, contributing employer is protected from civil suits over injuries the scheme covers.
How the Employees' Compensation Scheme works
The Employees' Compensation Act 2010 replaced the old Workmen's Compensation Act. NSITF, the Nigeria Social Insurance Trust Fund, runs the Employees' Compensation Scheme (ECS) it created. NSITF describes the key change plainly: the old law required an injured worker to prove the employer's negligence; the current scheme is no-fault, so a worker injured in the course of employment is compensated regardless of who was at fault. In exchange, a registered, contributing employer is protected from civil suits over the workplace injuries the scheme covers.
Coverage is wide. According to NSITF, the scheme covers all workers in the public and private sectors, including contract workers, casual and outsourced staff and apprentices, from the first day of employment. The scheme lists eight compensable situations, including workplace injury, mental stress, occupational disease, hearing impairment, injury outside the normal workplace and fatal cases.
What the employer must do before anything happens
- Register the business with NSITF through the Employer Self-Service Portal at ecsonline.nsitf.gov.ng. NSITF lists a one-off ECS registration fee; check the current amount on the portal.
- Pay the monthly contribution: 1% of total monthly payroll, paid through the same portal.
- Keep the certificate of compliance current. NSITF issues and renews it, and it is often asked for in public procurement.
- Keep payroll records that show who was employed, and on what pay, each month.
For the registration process in detail, see NSITF registration and remittance, and for how NSITF fits with NHF and ITF, Nigeria's other payroll deductions.
When someone is injured: steps
- Get treatment first. Take the employee to a hospital or clinic; keep receipts and the medical report.
- Record the facts the same day: time, place, what happened, witnesses, photographs of the scene and equipment.
- Report the incident to NSITF on the Notification of Accident form (ECS CCF01). NSITF's four-step process is: report, submit supporting documents (medical reports, and police reports where applicable), evaluation by NSITF's Claims and Compensation department, then compensation. Report promptly; the Act sets time limits, so check the current forms and guidance.
- Use the right channel. NSITF says claims are not yet handled on the Employer Self-Service Portal; download the claim forms, the employer's checklist and the guides for the medical report and affidavit from the Resources page, and send claims enquiries to claims@nsitf.gov.ng.
- Follow up. NSITF states that its team processes claims within 7 working days; keep a copy of everything submitted and the date.
What the scheme pays
| Benefit | What NSITF describes |
|---|---|
| Medical care | Medical, surgical, hospital and nursing care related to the injury, including transport, medicines and appliances such as crutches or artificial limbs, for as long as reasonably necessary |
| Temporary disability | Income support while the employee recovers |
| Permanent total disability | A periodic payment equal to 90% of the employee's monthly remuneration |
| Permanent partial disability | A lump-sum gratuity based on the percentage of incapacity assessed |
| Death | A funeral grant and an ongoing pension for the surviving spouse and children |
| Rehabilitation | Rehabilitation and vocational retraining where an injury causes permanent incapacity |
Worked example: what 1% of payroll costs
Example only. A restaurant has 14 staff with a total monthly payroll of ₦2,450,000.
| Item | Calculation | Amount |
|---|---|---|
| Monthly ECS contribution | ₦2,450,000 × 1% | ₦24,500 |
| Yearly cost | ₦24,500 × 12 | ₦294,000 |
Set against that, a single serious kitchen burn could mean months of treatment and lost income. Under the scheme, NSITF meets those costs for a registered, contributing employer, and the employer is protected from a civil suit over the injury.
Other duties that still apply
- The Labour Act's section 12 removes the old "common employment" defence: an employer sued over injuries caused by a co-worker's negligence cannot argue that the two were in common employment, and a contract term trying to exclude that liability is void.
- Sick pay under section 16 of the Labour Act is stated to be subject to the workmen's compensation law, so work injuries are handled through the scheme rather than only the 12-day sick-pay rule; see sick leave in Nigeria.
- Safety at work: prevention costs less than any claim. NSITF also offers occupational safety and workplace audits to employers.
What to keep on file
- NSITF registration details and the current certificate of compliance;
- proof of each monthly contribution, matched to that month's payroll;
- an accident book or log recording every incident, however minor, with date, time, people involved and action taken;
- copies of every Notification of Accident form submitted, with the medical and police reports attached; and
- correspondence with NSITF about each claim, with dates.
Records like these help NSITF evaluate a claim quickly and show that the employer met its side of the scheme.
Where Pryme fits
The monthly NSITF contribution is a payroll cost like pension and PAYE. With Pryme payroll it can be scheduled alongside salaries from the business account, and the Compliance agent can keep the certificate renewal date and monthly payment in view and prepare the payment for a person to approve.
Questions people ask
What should an employer do when a worker is injured at work in Nigeria?
Get treatment, record the facts, then report to NSITF on the Notification of Accident form (ECS CCF01) with medical reports and, where relevant, a police report.
How much do employers pay NSITF?
NSITF states the monthly contribution is 1% of total monthly payroll, plus a one-off registration fee.
Does NSITF cover casual and contract staff?
Yes. NSITF says the scheme covers contract, casual and outsourced staff and apprentices from the first day.
Can an injured worker sue the employer in Nigeria?
NSITF states that a registered, contributing employer is protected from civil suits over workplace injuries covered by the scheme.
Sources
- NSITF: Employees' Compensation Scheme, compensation · accessed Oct 2026
- NSITF: Services for employers and employees · accessed Oct 2026
- Labour Act (Chapter 198 LFN 1990, now Cap L1 LFN 2004), full text · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.