IN THE NATIONAL INDUSTRIAL COURT OF NIGERIA

IN THE PORT-HARCOURT JUDICIAL DIVISION

HOLDEN AT PORT-HARCOURT

 

BEFORE HIS LORDSHIP HON. JUSTICE M. A. HAMZA

                                

DATE: 11^TH NOVEMBER, 2025               SUIT NO: NICN/PHC/84/2024

BETWEEN;

NIGERIA SOCIAL INSURANCE TRUST FUND

MANAGEMENT BOARD                                             - - - - - - - CLAIMANT

 

AND

 

RIVERS STATE BOARD OF INTERNAL         

REVENUE SERVICES                                     - - - - - - - - - - - - DEFENDANT

 

 

 

REPRESENTATION:

Jennifer N. M for the Claimant.

Dr. J. Briggs – Assistant Director Ministry of Justice, Rivers State for the Defendant.

 

JUDGMENT

Introduction and Reliefs:

1.    The Claimant filed this complaint against the Defendant dated the 20^th day of November, 2024 together with the accompanying processes seeking for the following reliefs:

a)   A Declaration that the Defendant is an employer within the meaning of the Employees' Compensation Act, 2010 and by being so obligated to make a minimum monthly contribution of 1.0 percent of Defendant's total monthly payroll from July 2011 up to date and thereafter into the Employees' Compensation Fund managed by the Claimant.

b)   An Order compelling the Defendant to keep at all times, with the Fund, complete and accurate particulars of the defendant's payrolls from July 2011 to date and thereafter.

c)   An Order compelling the Defendant to compute/calculate and make a minimum monthly contribution of 1.0 percent of the Total Monthly Payroll of the defendant into the Employees' Compensation Fund managed by the Fund on a continuous basis.

d)   An Order compelling the Defendant to pay into the Employees Compensation Fund the sum of Two Billon, Three Hundred and Fifty-Five Million Naira (N2,355,000,000) only, as an outstanding sum established through a statutory estimation of the Defendant's salary/wages record for the period, July 2011 to July 2024.

e)   An Order compelling the Defendant to pay into the Employees Compensation Fund the sum of Nine Hundred and Forty-Two Million Naira (N942,000,000) being an amount equal to 40% of the unpaid assessment from July 201l to July 2024 as default fee for wilful refusal to pay the outstanding debt within the stipulated timeframe.

f)    An Order compelling the Defendant to pay into the Employees' Compensation Fund the sum of Two Hundred and Thirty-Five Million, Five Hundred Thousand Naira (N235,500,000) only as cost of recovery covering (N117,750,000) as cost of service of notices, (N47,100,000) as cost of production, (N47,100,000) as service of court processes and (N23,550,000), as other ancillary costs.

g)   An Order granting entry to officers of the Fund into the workplace of the Defendant for the purposes of inspecting and examining the account books/records of remuneration paid to its employees and other documents necessary for assessment of the organization’s minimum monthly contribution of 1.0 percent of the total monthly payroll, on periodic demands.

h)   An Order directing the sealing up of the Defendant's business premises until all unpaid contributions have been remitted.

 

2.    Other initiating processes were filed along with the complaint in line with the Rules of this Court. However, no Statement of Defence was filed by the Defendant despite the sufficient notice to that effect.

 

The Case of the Claimant as Pleaded

3.    The Claimant pleaded as follows:

a.   The Claimant is a statutory body established under the Laws of the Federal Republic of Nigeria and vested with the management and administration of the Employees' Compensation Scheme established under the Employees' Compensation Act, and having its Corporate Head Office at Plot 794, Muhammadu Buhari Way, Central Business Area, Garki, Abuja, FCT.

b.   The Defendant is an employer of labour in the public sector in Nigeria being an agency of Rivers State Government responsible for assessment, collection and accounting for taxes as well as enforcement of tax laws within the state.

c.   The Defendant carries on her operations from its office at Trans Amadi, Port Harcourt with employees of diverse categories including executive managements, tax administrators, revenue officers, administrative officers, IT professionals, legal professionals etc. whom the Defendant pays salaries on a monthly basis.

d.   The Claimant averred that on 20th September 2022, in fulfilment of its statutory duties it formally introduced the Defendant to the Employees' Compensation Scheme (ECS) and demanded for their compliance via a formal letter addressed to the Chairman, Rivers State Board of Internal Revenue Service and copied to Commissioner for Finance, Rivers State, Attorney General of Rivers State and Accountant General of Rivers State.

e.   The Claimant further averred that before sending a formal letter to introduce the Employees' Compensation Scheme (ECS) to the Defendant, it had through its Principal officers in Port Harcourt Regional and branch offices and via a letter to  that effect paid the Defendant a courtesy visit during which the objectives of the Employees' Compensation Act, the statutory obligation of the employers under it to register and make contribution as well as the attendant consequences/penalties for non-compliance were carefully elucidated to the Defendant.

f.    The Claimant averred that on 25th of September, 2022, a follow up demand letter was issued, outlining the objectives of the Employees Compensation Scheme (ECS) once again, reiterating the legal obligation to register and demanding the Defendant's immediate compliance with the ECS.

g.   The Claimant avers that on 5th December 2022, a reminder notice addressed to the Chairman, Rivers State Board of Internal Revenue Service and copied to the Commissioner for Finance, Rivers State, Attorney General of Rivers State and Accountant General of Rivers State, once again outlining the defendant's obligation under the Employees' Compensation Act 2010 and demanding compliance was issued. Despite the acknowledgements, no substantive response or compliance was received from the Defendant.

h.   The Claimant averred that a Notice of Statutory Assessment of Salary/Wages Record dated 17th November, 2023 with Ref No; NSITF/PHR/LEG/VOL. 1/512   was sent to the Defendant, notifying the Defendant of the Claimant intention to conduct a statutory inspection on the Defendant's payrolls, salaries/wages record through its officers, stating the date for the inspection and the documents that the defendant was required to make available for review in order for the Claimant to ascertain the accurate amount representing one percent (1%) of the Defendant's total payroll due as ECS contribution. The defendant failed to respond and did not provide the necessary documents for inspection on the given date despite the presence of the Claimant's officers at the Defendant's premises.

i.    The Claimant averred that following the Defendant's continual wilful refusal to comply with her statutory obligations under the ECA, 2010, the Claimant in furtherance of her statutory powers under the Employees' Compensation Act, 2010, invoked the relevant provisions of the Act to estimate the Defendant's payroll, assess same by computing the Defendant's 1.0 percent liability, penalties, default fees, interest, and costs which the Claimant has imposed against the Defendant for continued wilful default.

j.    The Claimant averred that in light of the defendant's continued lack of communication nor compliance, a Statutory Estimation of Payroll dated 14^th August, 2024 with Ref No: NSITF/PHR/LEG/VOL.1/838 was written to the Defendant to demand for the payment of its estimated outstanding liabilities as follows:

a.   The sum of Two Billion, Three Hundred and Fifty Five Million Naira (N2,355,000,000) representing 1.0 percent of the Defendant's statutory Estimated payroll and salaries/wages record for 157 months beginning from July 2011 to July, 2024.

b.   A further levy of One Billion, One Hundred and Seventy Seven Million, Five Hundred Thousand Naira (N1,177,500,000) representing penalties, costs, interest, and default charges for wilful default by the Defendant.

c.   That the a and b brought the total liability of the Defendant to Three Billion, Five Hundred and Thirty-Two Million, Five Hundred Thousand Naira (N3,532,500,000) which the Claimant has demanded from the Defendant and the Defendant has not responded as usual.

 

k.   The Claimant averred that upon the expiration of the Statutory Estimation of Payroll letter, a Pre- Legal Action Notice dated 17th September, 2024 with Ref No: NSITF/PHR/LEG/VOL.1/874 was sent to the Defendant to demand for payment of the outstanding liability of Three Billion, Five Hundred and Thirty-Two Million, Five Hundred Thousand Naira (N3,532,500,000) within One month for the period of July 2011 to July 2024.

l.    The Claimant averred that despite series of engagements through courtesy visits, demand letters, pre-legal action notice, meetings, and telephone conversations, the Defendant has wilfully neglected and refused to comply with the provisions of the Employees' Compensation Act, 20210 nor to pay the total outstanding liability of Three Billion, Five Hundred and Thirty Two Million, Five Hundred Thousand Naira (N3,532,500,000) only, being the statutory estimated outstanding contribution to Employees' Compensation Scheme (ECS) and the attendant statutory penalties for the period of July 2011 to July, 2024.

m.  The Claimant averred that the Defendant is in arrears and in default of compliance with the Employees' Compensation Scheme Contribution established under the Employees' Compensation Act, 2010.

n.   The Claimant averred that in spite of repeated demands to the Defendant to make her mandatory outstanding 1.0 percent total monthly payroll contribution to the Employees' Compensation Fund managed by the Claimant, the Defendant has wilfully neglected to make the said contributions which has greatly and negatively impacted on the Claimant's mandate to provide a fair, adequate and guaranteed compensation to employees for injury, disease, and death arising out of or in the course of employment.

o.   The Claimant averred that Defendant is in arrears of its outstanding 1.0 percent total monthly payroll contribution to the Employees' Compensation Scheme for the period of July 2011 to July 2024.

 

4.    Apparently the Defendant on its part despite the fact it was the duly served with all the processes pertaining to this suit, refused to file any defence. Instead, it opted for an out of Court settlement. The application was graciously granted by the Court in accordance with Order I Rules 6(1) of the National Industrial Court of Nigeria (Civil Procedures) Rules, 2017 and Section 20 of the National Industrial Court Act, 2006.

 

5.    Similarly, the parties were further enjoined to be guided by Order 42 of the Rules of this Court, 2017 and the decision in the judicial authorities of UNION HOMES & LOAN LTD VS CPC INDUSTRIES LTD (2009) LPELR- 8154 (CA): ADEDEJI VS OLUSO (2007)5 NWLR (PT. 2021) 123 & HASSTRUP LINE (W.A) LTD & ANOR VS WICHE & ORS (2020) LPELR -57261 (CA).

 

6.    Consequently, on the 11th day of November, 2024 parties have executed and adopted the Terms of Settlement on the 7th day of November, 2025 which is to the effect that:

 

NOW THEREFORE, in consideration of the foregoing which are hereby incorporated and made parts of this Agreement and in further consideration of the matters set forth below:

 

A. That the Defendant shall pay to the Claimant the total sum of Eighty Eight Million, Fifty Eight Thousand, Six Hundred and Ninety Six Naira, Tw kobo (N88,058,696.02) only representing full and final payment in settlement of all the claims in this suit.

a.   That the said agreed sum of Eighty Eight Million, Fifty Eight Thousand, Six Hundred and Ninety Six Naira, Two kobo (N88,058,696.02) only, to be paid in full as final settlement of this suit covers all liabilities of the Defendant in relation to remittances under the Employees' Compensation Act for its workplace situate at Plot 1, Amadi - Ama, Trans Amadi, Port Harcourt, Rivers State from January 2015 to December 2024.

B.  That the Claimant agrees not to conduct any further audits in relation to remittances for the Defendant's workplace situate at Plot 1, Amadi - Ama, Trans Amadi, Port Harcourt, Rivers State for the relevant period (January 2015 to December 2024) as agreed in the course of settlement.

C   That the Claimant accepts the sum in paragraph 1 above as full and final

             settlement of this suit.

D.  That the Claimant shall not make or file any further claims, complaints or law suit, either before a Law Court, Law Enforcement Agency, Regulatory Agency or any other body, Panel or Forum whatsoever, against the Defendant for any other sum, claim or relief in connection with the remittances under the Employees Compensation Act relating to the Defendant's workplace situate at Plot 1, Amadi - Ama, Trans Amadi, Port Harcourt, Rivers State for the relevant period (January 2015 to December 2024) as agreed in the course of settlement.

E.   That the Defendant shall pay into the Employees' Compensation Fund, the sum of N74,833,648.71 (Seventy Four Million, Eight Hundred and Thirty Three Thousand, Six Hundred and Forty Eight Naira, Seventy One kobo) only, being the Defendant's minimum Monthly contribution of 1.0 percent of its total monthly payroll from January 2015 to December, 2024 established through statutory assessment of its salaries/wages record.

F.   That the Defendant shall pay into the Employees Compensation Fund, the sum of N11,225,047.31 (Eleven Million, Two Hundred and Twenty Five Thousand, Forty Seven Naira, Thirty one kobo) only being 15% of their total monthly payroll from January, 2015 to December, 2024 as penalty for default in failing to cause to be furnished to the Claimant complete and accurate total monthly payroll for the period covered in this suit.

G.  That the Defendant is to pay the sum of N2,000,000.00 (Two Million Naira) only into the Employees Compensation Fund as costs of recovery covering cost of Service of Notices, Cost of Production, Service of Court Processes and other ancillary Costs.

H.  That the amounts stated in paragraphs 5, 6 and 7 above make up the sum total of Eighty Eight Million, Fifty Eight Thousand, Six Hundred and Ninety Six Naira, Two kobo (N88,058,69 6.02) only as contained in paragraph 1.

I.    That the payment shall be made via Remita by following this procedure or order: click pay TSA & States, then select pay Federal Government of Nigeria, then select Nigeria Social Insurance Trust Fund, under the name of service/purpose, select Employees' Compensation Scheme.

J.   The Defendant has agreed, going forward, to make payment of 1% of its total monthly payroll as its Employees' Compensation Scheme (ECS) contribution in line with the provisions of Employees' Compensation Act (ECA), 2010 and as of when due.

K.  That the payments due to the Claimant under these Terms of Settlement shall be made by the Defendant within 30 days upon the entering of these terms of settlement as Consent Judgment by the Court.

L.   That upon the above terms and conditions herein stated, every issue in this suit between the Claimant and the Defendant is effectively resolved.

M.  That these Terms of Settlement shall be entered as Consent Judgment of the Court in this suit.

 

7.    Pursuant to the above foregoing, the Court is duly satisfied with the amicable out of Court settlement as reached, executed and duly adopted by the parties conscientiously. Accordingly, these Terms of Settlement dated the 7th day of November, 2025 is  hereby entered as Consent Judgment of this Court in accordance with BICHI INVESTMENT (NIG) LTD & ORS VS JGB AMAEWHILE & ORS (2011) LPELR - 14264 (CA) & Order 42 of the National Industrial Court (Civil Procedures) Rules, 2017.

 

Judgment is entered accordingly.

 

 

          ------------------------------------------

          Hon Justice M. A. Hamza

        Judge