Prior to the inception of the Employees’ Compensation Act 2010 (“ECA”), the workers’ compensation system in Nigeria was governed by the Workmen's Compensation Act 1987 (Cap W6 LFN 2004) (“WCA”). The WCA failed to provide an adequate compensation regime for employees, notwithstanding the fact that payment of compensation stems from the employer's duty of care to the employee. Though an employer may be liable for injury, whether physical or mental, sustained by an employee, the WCA, among other things, had no provision for mental stress claims. Neither was the mental health of employees contemplated under its regime. The ECA has sought to close this gap by the provisions of its section 8. Using a comparative perspective, this article examines the dynamics as well as the challenges of applying section 8 of the ECA in the overall interest of the legal system and the labour environment.

It has been over a decade since the Employees’ Compensation Act (ECA) came into force, introducing, for the first time under Nigeria's employees’ compensation scheme, mental stress as a basis for compensation. However, legal literature on salient aspects of Nigerian employees’ compensation remains scant. This article seeks to bridge this gap and provide a source of legal scholarship to aid the adjudication of mental stress claims in Nigeria. The article discusses when and how work-related mental stress is compensable within the context of the ECA. It finds that, notwithstanding the subjective nature of mental stress and the possibility of feigning mental injury, the ECA establishes broad bases for compensating mental stress, increasing the risk that employees may manipulate the system and obtain benefits even when mental stress is not work-related. The article therefore articulates criteria to defeat fraudulent claims and ensure that only legitimate mental stress claims are compensated.