November 2, 2024 [ industrial relations law since 1973 to date ]

ABSTRACT

The history and development of industrial relations in Nigeria is one that sprouted out of its
colonial history which the British practiced and bequeathed to the post colonial independent
Nigerian government led by the Sir Abubakar Tafawa Balewa, who became first Nigeria’s
Prime Minister on October 1, 1960, and the military culture of power seizure and
interventionism. The colonialists established an industrial relations system that presented a
structure of an admixture of the Anglo-Saxon model of tripartism (that is, a system of
industrial relations which involved interaction among the key actors: employers, employees
and government) and interventionism, which rely on the use of force to enforce compliance
and prevention of industrial action. The paper attempts to establish a causal relationship
between this hybridity of colonial rule and military intervention on the one hand, and the
present day crisis-ridden industrial relations system of Nigeria. That is, it tries to show how
the form of industrial relations system of Nigeria today reflects largely its historical
antecedents. The paper concludes that the present day labour management relations system
of Nigeria can be properly appreciated if a cursory examination is conducted into its colonial
history vis-à-vis its post-colonial military government and labour reforms that are designed
mainly to establish the legal prescriptions and proscriptions for labour activities, employee-
employer relations and labour relations with the government and its regulatory agencies.
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INTRODUCTION

According to Abiodun, M. O. (1978), the history of industrial relations in Nigeria can

be traced back to the colonial or even the pre-colonial era, when formal and semi-

formal relationships where established with the British in particular and the Europeans

in general. Such relationships led to the introduction of wage employment in a formal

industrial setting. At the Berlin conference of 1884- 1885, the British succeeded in

formalizing its claims to the Nigeria Basin and the activities of some private

entrepreneurs were brought under control of the Royal Niger Company headed by Sir

Taubman George Goldie (Ubeku, 1993:37). Meanwhile one administrative or political

action of the British led to another, and eventually led to the amalgamation of the

Northern and Southern protectorates in 1914 to form Nigeria. This new country was

led by Lord Lugard, a British colonial administrator. As the country advanced both in

age and development, the British colonial masters carried out a number of reforms in

the labour sector, which created the legal frameworks for industrial relations in the

country. Therefore by 1960, when Nigeria gained political independence from Britain

which constituted industrial relations was largely derived or from the Anglo-Saxon

model of industrial relations. These developments in the labour sector were no doubt

without the activities of the nationalist and labour agitators at the time.

Industrial relations laws in Nigeria are a vital part of the nation’s legal framework,

focusing on regulating the relationships between employers, employees, and labour

unions. Since 1973, Nigeria has implemented a series of laws aimed at addressing

various aspects of industrial relations, including trade union formation, dispute

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resolution, workplace safety, employee rights, minimum wage, pensions, and other

labour welfare considerations. Here’s an in-depth examination of the major industrial

relations laws in Nigeria, including their historical context, key provisions, and

impact.

1. Trade Unions Act (1973)

 Background: In the early 1970s, Nigeria experienced a rise in labour activism

and union organization. The government recognized the need for legislation to

formalize the establishment and operation of trade unions, providing a legal

framework for collective bargaining and ensuring that unions served the

interests of their members responsibly.

 Provisions: This Act stipulates that all trade unions must be registered with the

Registrar of Trade Unions. It defines the process of union registration,

establishes restrictions on forming multiple unions for the same occupation,

and requires unions to submit annual financial statements. It also prohibits

employees in certain essential services and managerial positions from joining

trade unions to prevent conflicts of interest.

 Impact: The Act brought structure to labour relations by reducing unregulated

strikes and ensuring that only recognized unions could negotiate on behalf of

workers. It established accountability for unions by mandating financial

disclosures and ensuring transparency, which helped build trust between

unions, employers, and the government.

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2. Trade Disputes Act (1976)

 Background: As Nigeria’s industrial sector expanded, so did labour disputes,

often leading to costly strikes and disruptions. The Trade Disputes Act of 1976

was designed to provide a structured approach to managing industrial conflicts

by mandating a series of dispute resolution steps.

 Provisions: The Act establishes a multi-level dispute resolution process,

starting with mediation and conciliation. If these steps do not resolve the

conflict, the dispute is escalated to the Industrial Arbitration Panel (IAP).

Further escalation brings disputes to the National Industrial Court (NIC), which

serves as the final authority on labour disputes. The Act also stipulates that no

strike or lockout should occur while dispute resolution procedures are ongoing.

 Impact: The Trade Disputes Act encouraged peaceful settlement of labour

conflicts by providing a mandatory dispute resolution framework, reducing the

frequency of strikes and ensuring that both parties had access to impartial

mediators. This law has proven effective in containing industrial actions and

promoting compromise.

3. Labour Act (1971, Amended in 1990 and 2004)

 Background: The Labour Act serves as the main employment law in Nigeria,

addressing fundamental aspects of employment relationships and protecting

workers’ rights.
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 Provisions: The Labour Act covers terms and conditions of employment, such

as wages, working hours, rest days, sick leave, and maternity leave. It mandates

written employment contracts, outlines employer and employee

responsibilities, and restricts child labour, setting the minimum age for

employment. Additionally, it provides specific protections for women and

young workers, including maternity leave with job security for female

employees.

 Impact: This Act standardized basic employment conditions across the

country, establishing minimum standards for employee welfare. It significantly

improved workplace practices, especially in terms of job security, safe working

conditions, and basic employee rights, helping to protect vulnerable groups like

women and young workers.

4. Factories Act (1987)

 Background: With the growth of industries, factory workers faced increased

exposure to hazardous conditions. The Factories Act was introduced to enforce

workplace safety and promote healthy environments for employees.

 Provisions: The Act outlines regulations for ensuring factory safety, including

the proper maintenance of machinery, ventilation, sanitation, and emergency

exits. It requires employers to provide protective equipment, maintain clean

and safe facilities, and conduct regular health checks for workers in high-risk

areas. Inspections are mandated to ensure compliance.

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 Impact: The Factories Act played a crucial role in improving safety standards

in industrial workplaces, reducing the risk of occupational accidents. It

emphasized the responsibility of employers to protect workers from industrial

hazards, creating a culture of safety awareness and compliance in Nigeria’s

manufacturing sector.

5. National Minimum Wage Act (1981, Revised in 2010, 2019, and 2021)

 Background: Nigeria enacted the National Minimum Wage Act to address

wage disparities and protect low-income workers. The Act has been revised

multiple times to adjust the minimum wage in line with inflation and the rising

cost of living.

 Provisions: The Act sets a legally binding minimum wage that all employers

must adhere to, ensuring that workers receive fair compensation. The 2021

amendment established a minimum monthly wage of ₦30,000, applying to

both public and private sectors. Exceptions are made for certain small-scale

enterprises.

 Impact: The National Minimum Wage Act has helped improve the livelihood

of many Nigerian workers, especially those in low-paying jobs. It serves as a

tool for poverty reduction and ensures that workers are compensated at a level

that reflects economic realities. Enforcement, however, remains challenging,

particularly within the informal sector.

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6. Pension Reform Act (2004, Revised in 2014)

 Background: Prior to this Act, Nigeria’s pension system was mostly non-

contributory, and funds were often mismanaged, leaving many retirees without

support. The 2004 Pension Reform Act introduced a contributory pension

scheme to improve financial security for retirees.

 Provisions: The Act mandates that both employers and employees contribute a

portion of the employee's salary to a pension fund, managed by licensed

Pension Fund Administrators (PFAs). The 2014 revision allows for more

flexible withdrawal options, safeguards funds, and provides for the transfer of

pensions if an employee changes jobs.

 Impact: The Pension Reform Act has transformed Nigeria’s pension system,

ensuring that workers have retirement savings. This has increased financial

security for retired workers and introduced a culture of personal savings,

making the pension system more sustainable and reliable.

7. Employee’s Compensation Act (2010)

 Background: The Employee’s Compensation Act replaced the outdated

Workmen’s Compensation Act to better address compensation for workplace

injuries, disability, and death.

 Provisions: It establishes the Employee’s Compensation Fund, managed by the

Nigeria Social Insurance Trust Fund (NSITF), to provide compensation to

employees who sustain injuries or disabilities or to families in cases of death.

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Employers must contribute to the fund, and employees are protected against

income loss resulting from workplace incidents.

 Impact: The Act has provided workers with greater security and access to

compensation, reducing the financial burden on employees and their families. It

has also encouraged employers to prioritize workplace safety, as compensation

liabilities now contribute to the Employee’s Compensation Fund.

8. National Industrial Court Act (2006)

 Background: While the National Industrial Court (NIC) had existed, its

powers and jurisdiction were not clearly defined. The 2006 Act formally

established the NIC as a specialized court with exclusive jurisdiction over

labour disputes.

 Provisions: The NIC has the exclusive authority to adjudicate on labour-related

matters, including trade disputes, employee compensation, and union issues. It

also has the power to enforce collective agreements and resolve industrial

disputes between unions and employers.

 Impact: By establishing a dedicated court for labour disputes, the NIC Act has

streamlined the resolution process, reducing case backlog and enabling faster,

more expert resolution of labour conflicts. It has strengthened Nigeria’s

industrial relations framework, making it easier for parties to resolve disputes

legally.
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9. Nigeria Labour Congress (NLC) Registration and Operation Act

(1978, with Amendments)

 Background: The Nigeria Labour Congress (NLC) Act was introduced to

unify labour movements, creating a single organization to represent workers

and advocate for their rights.

 Provisions: The Act recognizes the NLC as the central body for Nigerian trade

unions and mandates that all registered unions affiliate with it. It also regulates

union dues, labour protests, and strike actions to ensure that workers are

represented cohesively.

 Impact: The NLC has become the primary advocate for Nigerian workers,

engaging in policy discussions and wage negotiations. It has consolidated the

labour movement, strengthening workers' bargaining power and making labour

representation more organized.

10. Labour and Employment Regulations (2017)

 Background: Issued by the Ministry of Labour, this regulation enhances

employment practices, especially concerning expatriate hiring and local

employment quotas.

 Provisions: The regulation guides the hiring of foreign nationals, promoting

local employment. It also sets guidelines for contract employment, ensuring

that expatriates adhere to Nigeria’s local employment policies and protecting

the rights of Nigerian workers.

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 Impact: This regulation has helped balance the representation of local and

expatriate employees in Nigeria’s workforce. It supports the country’s national

employment goals by ensuring that Nigerians benefit from local job

opportunities while setting standards for fair treatment of expatriate workers.

Challenges Facing Industrial Relations Laws in Nigeria

There are several challenges facing Industrial Relation Law in Nigerian but this paper focus

on two (2) major problems while the other challenges are categorised and enumerated below:

1. Insincerity of Involved Parties

The government, by being the highest employer of labour in Nigeria plays an

important role as a stakeholder in the management and settlement of disputes in

Nigerian work organizations. However, the insincerity of the government in policy

implementation, fulfilment of pledges, and lack of respect for collective agreements

and memorandum of understanding (MOU) are major factors denting harmonious

industrial relations in the country. It is of common knowledge that the language

Government understands best in Nigeria is “Strike”.

2. Inconsistent Policies, Cumbersome Procedures & Problem of Time

Existing statutory provisions for the settlement of industrial disputes have not been

effective due to delays experienced by aggrieved parties as well as the

cumbersomeness of the procedure. Industrial Arbitration Panel for example has 42

days within which to make its award normally, but experience has shown it takes up to

12 months to make its decision known to parties.

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INSTITUTIONAL CHALLENGES
1. Weak enforcement mechanisms
2. Inadequate funding for labor institutions
3. Limited capacity for dispute resolution
4. Corruption within labor institutions

LEGISLATIVE CHALLENGES
1. Outdated laws (e.g., Labour Act, 1974)
2. Inadequate coverage for informal sector workers
3. Limited protections for vulnerable groups (e.g., women, children)
4. Conflict between federal and state laws

ECONOMIC CHALLENGES
1. High unemployment rates
2. Low wages and poor working conditions
3. Informalization of the economy
4. Impact of globalization and technological changes

SOCIAL CHALLENGES
1. Child labor and human trafficking
2. Discrimination and harassment
3. Limited access to social security benefits
4. Cultural and religious barriers to labor rights

ADMINISTRATIVE CHALLENGES
1. Inefficient dispute resolution processes
2. Delayed or non-payment of workers' compensation
3. Limited inspection and monitoring of workplaces
4. Inadequate training for labor officials

JUDICIAL CHALLENGES
1. Backlog of labor-related cases
2. Limited expertise in labor law among judges
3. Inconsistent court decisions
4. Difficulty in enforcing court judgments

CONCLUSION:

Industrial relations laws in Nigeria have undergone significant developments since 1973,

aiming to promote harmonious employer-employee relationships, protect workers' rights, and

ensure fair labour practices.

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RECOMMENDATIONS:
To solve the problems, here are some recommendations among others that:
1. Government leadership
Government, first and foremost, must show exemplary leadership by respecting
and observing labour agreements as well as provide adequate safeguard against
arbitrariness and other abuse of workers' rights by employers and adopt labour-
friendly policies.
2. Labour-friendly policies
The government should adopt policies that strengthen labour unions.
3. Criminalize casual workers
The government should criminalize employers who employ casual workers
and establish an agency to regulate and punish them.
4. Encourage worker participation
The government should encourage workers to participate in the management
of the industrial unit through works committees and joint consultation.
5. Review the Labour Act
The Labour Act should be reviewed to include paternity leave.
6. Criminalize casual workers
The government should criminalize employers who employ casual workers
and establish an agency to regulate and punish them.
7. Independent judiciary
The government should ensure that the legal and regulatory frameworks are
enforced by an independent judiciary.

By addressing the challenges and implementing these recommendations, Nigeria can

strengthen its industrial relations framework, promote fair labor practices, and ensure a
harmonious work environment.
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References

1. Abiodun, M. O. (1978). Restructuring of Trade Unions in Nigeria: 1976-1978

2. Ademolu Adediran (Author)Research Paper (postgraduate) , 2021
3. Yesufu, T.M (1962). An Introduction to Industrial Relations in Nigeria. Oxford:
Oxford University Press.
4. Federal Ministry of Labour and Employment. Labour Laws in Nigeria. Available at
Nigeria Ministry of Labour.
5. International Labour Organization. Labour Legislation in Nigeria. Available at ILO.
6. National Industrial Court of Nigeria. National Industrial Court Act, 2006. Available at
NICN.
7. Mondaq. Industrial Relations and Dispute Resolution in Nigeria. Available at
Mondaq.
8. PenCom Nigeria. Pension Reform Act, 2014. Available at PenCom.
9. Yesufu,T.M (1962). An Introduction to Industrial Relations in Nigeria. Oxford:
Oxford University Press.
10. Otobo, D. (2000).Industrial Relations: Theories and Controversies. Lagos.
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11.