1 Introduction
According to the International Labour Organization (ILO), nearly 2.3 million workers die annually worldwide from occupational accidents and diseases, with tens of millions more suffering non-fatal injuries.1 Nigeria is not exempt from this troubling reality. From factory mishaps and construction site collapses to stress-induced breakdowns in office environments, the frequency of workplace accidents raises a pressing legal question: how well does Nigerian law protect employees when the unexpected happens?
Workplace accidents remain an unfortunate but recurring feature of Nigeria's labour environment. From industrial sites to corporate offices, employees are exposed to varying degrees of risk. These risks not only raise human and economic concerns but also implicate the legal obligations of employers.
This article critically examines the remedies available to employees under Nigerian law, focusing on the Employee Compensation Act, 2010, the Labour Act 2004 and the Factories Act 2004, while also considering common law actions, constitutional safeguards, and relevant case law.
2 Statutory Compensation Under the Employee Compensation Act, 2010 (ECA)
The Employee Compensation Act, 2010 (ECA) is the primary legislation governing remedies for workplace accidents and occupational diseases in Nigeria. It repealed the former Workmen's Compensation Act and introduced a modern framework based on a no-fault liability principle. This means that employees who suffer injury, disease, or death in the course of employment are entitled to compensation without the need to prove that the employer was negligent. The scheme is administered by the Nigeria Social Insurance Trust Fund (NSITF), which manages contributions and disbursements.
2.1 Coverage and Compensable Events
The Act applies to all employers and employees in both the public and private sectors (excluding armed forces in active service).2 Compensation is payable for:
- Injuries sustained in the course of employment or while commuting;
- Occupational diseases, including those listed in the First Schedule
- Mental stress arising from sudden traumatic events or chronic work conditions;
- Disabilities, whether permanent or temporary
- Fatal accidents, with benefits payable to dependants.
2.2 Procedural Requirements
Procedurally, the Act requires employees to notify employers of any injury within 14 days, while employers are in turn obliged to report such incidents to the NSITF within 7 days. Claims should generally be made within one year of the incident, though extensions may be granted in meritorious cases.
2.3 Benefits and Funding
To fund the scheme, employers contribute 1% of total monthly payroll into the Employees' Compensation Fund, ensuring that the system is collectively financed.
The benefits payable under the Act include medical treatment, rehabilitation services, periodic disability payments (sometimes up to 90% of wages in cases of permanent disability), and dependants' benefits where death occurs. One of the ECA's most significant features is that compensation is guaranteed regardless of fault, thereby reducing the burden of litigation on injured workers. Nonetheless, employees retain the right to pursue alternative remedies, such as negligence claims, if they elect not to receive statutory benefits
3. Civil Remedies: Negligence and Breach of Duty
The statutory scheme under the ECA does not completely exclude the role of the courts. Nigerian employees retain the option to pursue civil remedies in negligence or breach of statutory duty, particularly where they seek damages beyond the standard ECA package.
Employers owe a common law duty of care to their employees: to provide a safe workplace, adequate supervision, competent colleagues, and suitable equipment. Failure in any of these respects may result in liability if injury occurs. In Ola Suleiman v. Hongzing Steel Co. Ltd,3 the National Industrial Court stressed that employers are under both statutory and common law duties to maintain safe systems and equipment, with specific reference to obligations under the Factories Act.
3.1 Principle of Election.
The courts have clarified that the ECA creates a principle of election. In Amina Hassan v. Airtel Networks Ltd & Anor, 4 the Court held that section 12 ECA gives employees the choice of either pursuing compensation under the statutory scheme or suing in negligence but not both. Where a claim is framed as a negligence action, it can proceed directly in court without first applying to the NSITF.
In practice, negligence actions can yield substantial awards. For instance, in Mr. Anthony Godwin Utibe v. Jiuxing Integrity Industries Ltd,5 the Court awarded ₦30 million in damages to an employee who sustained grave workplace injuries. The Court affirmed that the ECA does not extinguish negligence claims, and that contributory negligence merely affects apportionment, not the right to sue.
These decisions confirm that while the ECA provides a quick statutory remedy, civil suits remain an important avenue for more robust compensation and accountability.
4. The Factories Act (CAP F1 LFN 2004)
The Factories Act is principally concerned with prevention of accidents. It imposes a wide range of duties on employers and factory occupiers to maintain safe working conditions. These include requirements on cleanliness, ventilation, lighting, and space, as well as strict obligations to fence dangerous machinery, provide protective equipment, and maintain safe systems of work.
The Act also mandates accident reporting, medical examinations, and record keeping. Inspectors are empowered to enforce compliance, and breaches may attract criminal sanctions including fines and imprisonment.
By focusing on prevention, the Factories Act complements the ECA's remedial structure, ensuring that employers are not only liable after harm occurs but are also compelled to reduce the likelihood of accidents in the first place.
5. The Labour Act (CAP L1 LFN 2004)
The Labour Act primarily regulates contracts of employment, but it also contains provisions relevant to workplace injury. Section 7 requires employers to provide written terms of employment, including sickness and injury benefits. Section 16 provides for paid sick leave where an employee is incapacitated, ensuring continued income security.
Importantly, section 12 abolishes the old "common employment defence," which allowed employers to escape liability where injury was caused by a fellow worker. By removing this defence, the Act strengthens the accountability of employers for all workplace injuries. Although not as detailed as the ECA, the Labour Act underscores the contractual dimension of workplace protection, ensuring that terms relating to illness and injury are expressly provided and enforceable.
6. Criminal Liability for Workplace Accidents
Beyond civil and statutory compensation, Nigerian law also contemplates criminal liability for workplace accidents where negligence or deliberate non-compliance causes injury or death. This adds a deterrent dimension to the country's occupational safety framework.
(a) Factories Act
The Factories Act (Cap F1 LFN 2004) does not only impose preventive obligations; it also creates a range of criminal offences. Employers and factory occupiers who fail to fence dangerous machinery, provide protective equipment, maintain safe systems of work, or comply with inspectors' directives may face fines and imprisonment. Failure to report accidents or occupational diseases is likewise punishable. These provisions make it clear that disregard for workplace safety is not merely a civil wrong but a crime against public welfare.
(b) Criminal Code and Penal Code
General criminal law provisions also apply to workplace accidents. The Criminal Code imposes a duty on persons in charge of dangerous things or machinery to take reasonable care to preserve human life. A breach of this duty leading to death may amount to manslaughter by negligence. Similarly, the Penal Code criminalises causing death by negligence, classifying it as culpable homicide not punishable with death. In less severe cases, negligent acts causing bodily harm are also punishable.
(c) Sector-Specific Regulations
In highly regulated sectors such as oil and gas and mining, additional criminal sanctions exist under industry-specific legislation. Operators who fail to comply with mandatory safety protocols may face prosecution, in addition to regulatory penalties.
(d) Constitutional Dimension
Although the 1999 Constitution (as amended) does not itself create workplace offences, the right to life and dignity of the human person underpin these protections. Where systemic neglect of safety leads to injury or death, state authorities may rely on constitutional guarantees in framing criminal responsibility.
7. International Standards
Nigeria is a member of the International Labour Organization (ILO) and has ratified key conventions on occupational safety and health, including ILO Convention 155 (Occupational Safety and Health, 1981) and Convention 187 (Promotional Framework for Occupational Safety and Health, 2006). These standards have influenced domestic reforms and are sometimes referenced by Nigerian courts in interpreting labour statutes.
By aligning with these international instruments, Nigeria signals its commitment to global best practices, even if enforcement at the domestic level remains a challenge.
CONCLUSION
The global statistics on workplace accidents underscore the urgency of effective protections. With over 2.3 million work-related deaths annually worldwide, Nigeria cannot afford weak enforcement or unclear remedies.
The Nigerian framework rests on three interlocking pillars: the Employee Compensation Act, 2010, which guarantees compensation without proof of fault; the Labour Act and common law, which enforce accountability through contract and negligence actions; and the Factories Act, which imposes preventive duties on employers.
For employees, awareness of their rights under these regimes is vital. For employers, compliance is both a legal duty and a risk management strategy. Ultimately, workplace safety is not only a statutory requirement but also a foundation for sustainable economic productivity and industrial peace in Nigeria.
Footnotes
1. < https://webapps.ilo.org/static/english/osh/en/story_content/external_files/fs_st_1-ILO_5_en.pdf > Accessed 5th of August, 2025.
2. Section 2-3 of the Employee Compensation Act, 2010.
3. NICN/LA/73/2011, judgment 26 Feb 2015.
4. ((2015) 58 NLLR (Pt 201) 443).
5. SUIT NO: NICN/OW/43/2023
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