An employer may first hear about NSITF because a tender asks for a certificate. The scheme behind it is broader than the certificate. This is the short version, as NSITF's own FAQ gives it.
Why the Act exists
The Employees' Compensation Act 2010 set up the Employees' Compensation Fund. It is a no-fault scheme. It pays for work-related injury, disease, disability or death.
In plain terms, the scheme is there to pay when work harms an employee. Nobody has to win an argument about blame first.
Who funds it
Employers do. NSITF's FAQ calls 1% of total monthly payroll the minimum monthly contribution, paid by every registered employer. Nothing comes off staff pay.
Because the rate is a share of payroll, a bigger team means a bigger contribution. Budget for it as a running cost of hiring, in the same way you budget for pension.
See how the NSITF contribution rate is worked out for the detail.
Who it covers
On NSITF's wording, an employer is any person, company, firm or government agency with one or more staff. So the duty starts with the first hire.
Who must register with NSITF covers this in full, including a headcount claim that some guides make.
What employers must do
Three duties from NSITF's FAQ are covered on this site.
- Register on NSITF's portal at ecsonline.nsitf.gov.ng.
- Pay contributions within the first two working days of each month.
- Report a workplace accident to the nearest NSITF office within 7 days. See reporting a workplace accident to NSITF.
Miss the payment window and NSITF's FAQ lists penalties. They are covered in NSITF late payment penalty and fines.
Treat the three as one routine. Put the payment date and the accident-reporting rule in your staff handbook, and name who owns each task. In a small business, all three can end up with the owner. That works until the owner is away.
How the compliance certificate fits in
A tender pack asks for an NSITF compliance certificate. It belongs to the same scheme, not a separate one.
The Public Procurement Act 2007 expects every bidder to have paid all taxes, pensions and social security contributions due. NSITF is one strand of that duty. Our NSITF compliance certificate guide explains the certificate itself.
So in practice: register, pay each month and keep your receipts before a tender asks for the certificate. This article cannot say what NSITF looks at when it issues one, so ask NSITF what an application needs.
Common mistakes
- Treating NSITF as a tender formality, when it is a legal duty from the first hire.
- Deducting the contribution from staff pay, when it is the employer's cost alone.
- Skipping registration until a bid needs the certificate.
- Assuming a lawyer or accountant has already handled it without asking to see the receipts.
For the rest of the pack a bid needs, see the tender compliance hub.