A common guess is that NSITF only applies once a business reaches a certain size. NSITF's own wording says otherwise.
What NSITF's own FAQ says
NSITF's FAQ is direct on this. Any employer with one or more employees must register and contribute under the Employees' Compensation Act 2010. The only headcount in that sentence is one.
Some other schemes do set a staff threshold. The Pension Reform Act 2014, for example, applies its scheme to an organisation with 15 or more employees.
The "five or more" claim, and what NSITF says
Some guides say a business needs five or more staff before NSITF applies. A Legit.ng guide from November 2025 is one example. That is not NSITF's position.
NSITF's FAQ defines an employer broadly: any person, company, firm or government agency employing one or more staff, public or private, whatever its size. A two-person consultancy meets that definition as much as a two-hundred-person manufacturer.
Its duty starts with the first employee. Check the source before you repeat a number.
What "employer" actually covers
The FAQ's definition is wide. It covers:
- Private companies, of any size.
- Government agencies and public bodies.
- Firms and sole proprietorships with staff on payroll.
On the FAQ's wording, having at least one employee is what triggers the duty. If you are unsure whether a particular worker counts as an employee, ask an accountant or NSITF directly rather than guessing.
Registering even with one employee
A founder who has just hired a first member of staff is already an employer, on NSITF's own wording. That founder should register. Waiting until the business feels big enough is not a rule NSITF sets.
NSITF's FAQ says in-person registration has been replaced by its self-service portal, at ecsonline.nsitf.gov.ng. So you do not need an office visit to register, and there is little reason to put it off.
If your business first registered at a branch, the same FAQ says you reset your password once, then log in as an existing employer.
What registration leads to
Registration is not the end of the process. Monthly contributions and compliance certificate fees are paid through the same portal. Invitations to tender list an NSITF certificate as valid until 31 December of the bidding year. See the NSITF compliance certificate page for what that involves.
Once you are registered, the minimum rate is 1% of total monthly payroll, paid by the employer and due within the first two working days of each month. Our contribution rate guide covers how it is worked out.
Common mistakes
- Assuming a small headcount means NSITF registration can wait.
- Repeating the "five or more staff" figure some guides state, which does not match NSITF's own wording.
- Treating registration as optional for a sole proprietorship with staff, when NSITF's FAQ covers any employer with one or more employees.
For the rest of the certificates a growing employer meets, see the tender compliance hub.