CRITICAL APPRAISAL OF LEGAL FRAMEWORK FOR SETTLEMENT OF

LABOUR DISPUTES IN NIGERIA

BY

OMOLASOYE ADEBOWALE RAPHAEL

MATRIC NUMBER: 180301130

BEING A LONG ESSAY SUBMITTED TO THE FACULTY OF LAW, ADEKUNLE

AJASIN UNIVERSITY, AKUNGBA-AKOKO, ONDO STATE, NIGERIA, IN PARTIAL
FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF
BACHELOR OF LAWS (LL.B)

OCTOBER, 2024
 DECLARATION

This is to declare that this long essay is original and was carried out by me, OMOLASOYE
ADEBOWALE RAPHAEL with the matriculation number 180301130, under the diligent
supervision of my supervisor, Dr John Oluwatomisin Akinselure of the Faculty of Law, Adekunle
Ajasin University, Akungba-Akoko.

__________________________ __________________________

OMOLASOYE ADEBOWALE R. DATE

 CERTIFICATION

We hereby certify that this long essay was carried out under our supervision by OMOLASOYE
ADEBOWALE RAPHAEL of the Faculty of Law, Adekunle Ajasin University, Akungba-Akoko,
Ondo State, with the matriculation number 180301130, in partial fulfilment of the award of the
degree of Bachelor of Laws (LL.B).

_______________________ _____________________

Dr. John O. Akinselure Date

Supervisor

_______________________ _____________________

Prof. Olubayo Oluduro Date

Dean, Faculty of Law

____________________ ________________________

External Examiner Date

 DEDICATION

I dedicate this project in the first place, to God Almighty, who by his grace and mercy made this
work an absolute success. I also dedicate this work to my loving parents, Mr and Mrs Omolasoye,
for their guidance and financial support all through. This project is equally dedicated to my
supervisor, Dr J.O. Akinselure as well as Mr Olatunde Olayinka for their high-level mentorship,
guidance and support.
 ACKNOWLEDGMENT

To start with, my unalloyed gratitude goes to God Almighty—the beginning and the end, who
against all odds, made me set out for this LL.B journey and gave me the needed wisdom and the
overall ability to commence and complete this project work.

I unequivocally acknowledge the relentless efforts and support of my wonderful parents, Mr and
Mrs Omolasoye, through whom God facilitated my academic career hitherto as well as Mr
Oladotun Oladunjoye for his fatherly support all through. I also appreciate the thorough and careful
supervision of my supervisor, in the person of Dr. John Oluwatomisin Akinselure, as well as his
timely advice, patience and moral support in the course of writing this project work.

More so, I acknowledge the Dean and the Sub-dean of the Faculty as well as every other lecturer
of the Faculty for their diligence, contributing to the success of this project work and my academic
journey in the Faculty of Law, Adekunle Ajasin University, Akungba Akoko.

I would also like to, through this medium, appreciate my outstanding circle of friends—Adepoju
Emmanuel Olamilekan, Adedeji Adebusuyi Raphael, Oluwarotimi Abolade Sandra, Omotoso
Damilola Marvelous, among others, for being a big part of this incredible academic journey of
mine. Surely, with this set of individuals around me, I had an excellent and a memorable LL.B
journey.

Finally, to Mr Olatunde Olayinka—my brother and senior colleague, I extend sincere show of
gratitude for the indelible teachings, directions and time-yielding knowledge which ultimately
proved instrumental to the success of this work and by extension, to my overall academic and
leadership life.
 TABLE OF CASES

Abalogu v S.P.D.C Ltd. (2003) 13 NWLR (Pt 837) 308 at 337, paras D-E…………………….. 67

Ajomale v Yaduat & Anor (1991) LPELR-305 (SC) pp 8-9, para E…………………………….. 73

Akinyemi v Crawford University (2011) 22 NLLR (Pt 61) 90…………………………………... 76

Arthur Nwankwo & 7 Ors v Alhaji Umaru Yar’Adua & Ors (2010) LPELR-2109
(SC)…………………………………………………………………..................................... 31, 72

Chukwumah v Shell Development Company of Nigeria Ltd. (1993) 4 NWLR (Pt 289)
SR……………………………………………………………………………………………….. 67

Coca-Cola Nig. Ltd. & Ors v Mrs Titilayo Akinsanya (Unreported) SC 542/2013, judgment
delivered June 30, 2017……………………………………………………………………........ 35

Daodu v United Bank for Africa Plc (2004) 9 NWLR (Pt 878) 276…………………………… 67

Federal Government of Nigeria (FGN) v Academic Staff Union of Universities (ASUU)

(Unreported) Suit No: NICN/ABJ/270/2022, ruling delivered on May 30,
2023…………………………………………………………………………………………..24, 81

Ford Motor Co. Ltd v. Amalgamated Union Of Engineering And Foundry Workers (1968) 2
Q.B.303…………………………………………………………………………………………. 30
Local Government Service Commission, Ekiti State & Anor v Mr M.A. Jegede (2013) LPELR-
211311…………………………………………………………………………………………... 34

Local Government Service Commission, Ekiti State v Mr M.K. Bamisaye (2013) LPELR-
20407……………………………………………………………………………………………. 34

MTN Nigeria Communications Plc v Private Telecommunications and Communications & Senior
Staff Association of Nigeria (PTECSSAN) (Unreported) Suit No: NICN/ABJ/177/2023, judgment
delivered April 26, 2024……………………………………………………………………….... 73
N.A.P.P.S. & Ors v N.U.T. (2012) 28 NLLR (Pt 81) 483 NIC………………………………...… 23

National Union of Electricity Employees v Bureau of Public Enterprises [2010] 7 NWLR (Pt 1194)
538, 574, paras. D-C…………………………………………………………………………….. 23

Nestle Nig. Plc v NUFBTE (2009) 15 NLLR (Pt 40) 1, at 74, paras. E-F……………………….. 73

N.S.I.T.F.M.B. v KLIFCO Nig. Ltd. (2010) All FWLR (Pt 534) 73……………………………... 72

N.U.R.T.W. v Ogbodo (1998) 2 NWLR (Pt 537) 189. …………………………………………... 19

RE: Union of Ifelodun Timber Dealers and Allied Workmen (1964) 2 All NLR 62…………….. 23

Skye Bank Plc v Victor Anaemen Iwu (2017) LPELR 42595 (SC)…………………………...…. 35

The Management of Nestle Nigeria Plc, Ilupeju Lagos State v National Union of Food, Beverages
and Tobacco Employees (Unreported) Suit No: NIC/25/2008, judgment delivered April 2,
2009………………………........................................................................................................... 73

Trade Union Members of the Joint Health Sector Unions (JOHESU) v Federal Ministry of Health
(Unreported) Suit No: NICN/ABJ/238/2012, judgment delivered 27/07/2013………………..... 32

Tram Shipping Corporation v Greenwich Maine Incorp. [1957] All ER 898, 990……………... 22

Union Bank of Nigeria Ltd. v Edith [1993] 4 NWLR (Pt 287) 288……………………………... 21

Wema Bank Plc v Arison Trading and Engineering Co. Ltd. [2017] All FWLR (Pt 881]
1007………………………………………………………………............................................... 73

Williams v Registrar of Titles, Lagos State & Ors (2016) LPELR-41420 (CA)………………… 31

Williams v Williams (2014) 15 NWLR (Pt 1430) 213…………………………………………… 31

 TABLE OF STATUTES

Arbitration and Conciliation Act, 1998.

Arbitration and Mediation Act, 2023.

Constitution of the Federal Republic of Nigeria 1999 (as amended).

Federal Competition and Consumer Protection Act, 2018.

International Labour Organization (ILO) Convention No. 87.

Labour Act, 2004.

National Industrial Court Act, 2006.

Rules of Professional Conduct for Legal Practitioners, 2007.

Trade Disputes Act, 2004.

 LIST OF ABBREVIATIONS

ADR Alternative Dispute Resolution

FCCPA Federal Competition and Consumer Protection Act

FCCPC Federal Competition and Consumer Protection

Commission

IAP Industrial Arbitration Panel

NIC National Industrial Court

NICN National Industrial Court of Nigeria

RPC Rules of Professional Conduct

SON Standard Organization of Nigeria

TDA Trade Disputes Act

 TABLE OF CONTENT

Title Page ………………………………………………………………………………………… i

Declaration ………………………………………………………………………………………. ii

Certification …………………………………………………………………………….............. iii

Dedication ………………………………………………………………………………………. iv

Acknowledgment ………………………………………………………………………………… v

Table of Cases …………………………………………………………………………................ vi

Table of Statutes ……………………………………………………………………………….. viii

List of Abbreviations …………………………………………………………………………… ix

Table of Content ………………………………………………………………………………… x

Abstract ………………………………………………………………………………………... xiv

CHAPTER ONE: GENERAL INTRODUCTION

1.1 Background to the Study ……………………………………………………………………... 1

1.2 Statement of Problem ………………………………………………………………………... 4
1.3 Research Questions …………………………………………………………………………... 5
1.4 Aim and Objectives ………………………………………………………………………..…. 6
1.5 Scope and Limitation of the Study …………………………………………………………... 6
1.6 Significance of the Study …………………………………………………………………….. 7
1.7 Research Methodology ………………………………………………………………………. 8
1.8 Literature Review ……………………………………………………………………………. 9
1.9 Chapter Synopsis …………………………………………………………………………… 17

CHAPTER TWO: CONCEPTUAL CLARIFICATION AND HISTORICAL

BACKGROUND ON LABOUR DISPUTES SETTLEMENT IN NIGERIA

2.1 Conceptual Clarification ……………………………………………………………………. 19

2.1.1 Definition of Labour Dispute ……………………………………………………………... 19

2.1.2 Causes of Labour Disputes ………………………………………………………………... 20

2.1.3 Classification of Labour Disputes ………………………………………………………… 21

2.1.4 Types of Labour Disputes ……………………………………………………………….... 22

2.1.5 Alternative Dispute Resolution (ADR) …………………………………………………… 26

2.1.6 Forms of ADR Mechanisms in Nigerian Labour Law ……………………………………. 27

2.1.7 Mechanisms and Procedures for Labour Dispute Settlement …………………………….. 29

2.1.8 Appeals from the National Industrial Court (NIC) …………………………………….….. 34

2.1.9 Industrial Democracy and Industrial Harmony in Industrial Relations …………….…….. 37

2.2 Historical Background ……………………………………………………………………… 40

2.2.1 Historical Evolution of ADR Mechanisms for Settlement of Labour Disputes in Nigeria... 40
CHAPTER THREE: LEGAL AND INSTITUTIONAL FRAMEWORKS FOR
SETTLEMENT OF LABOUR DISPUTES IN NIGERIA

3.1 Legal Frameworks for Settlement of Labour Disputes in Nigeria ………………………… 42

3.1.1 Labour Act, 2004 ………………………………………………………………………… 42

3.1.2 Trade Disputes Act, 2004 ………………………………………………………………… 44

3.1.3 Arbitration and Conciliation Act, 1998 …………………………………………………… 47

3.1.4 Arbitration and Meditation Act, 2023 …………………………………………………….. 51

3.1.5 National Industrial Court Act, 2006 ………………………………………………………. 57

3.1.6 The Federal Competition and Consumer Protection Act (FCCPA), 2018 ………………... 58

3.1.7 Rules of Professional Conduct for Legal Practitioners, 2007 ……………………………... 60

3.2 Institutional Frameworks for Settlement of Labour Disputes in Nigeria …………………… 60

3.2.1 Trade Unions and Employers’ Associations ……………………………………………… 60

3.2.2 Nigerian Export Promotion Council ……………………………………………………… 64

3.2.3 Standard Organization of Nigeria (SON) ………………………………………………... 64

3.2.4 Ministry of Labour and Employment ……………………………………………………... 65

3.2.5 Federal Competition and Consumer Protection Commission (FCCPC) ……………..…… 69

3.2.6 Industrial Arbitration Panel (IAP) ……………………………………………………….... 72

3.2.7 National Industrial Court of Nigeria (NICN) …………………………………………….. 74

CHAPTER FOUR: LABOUR DISPUTE SETTLEMENT IN NIGERIA: CHALLENGES

AND IMPACTS
4.1 Challenges to Effective Labour Dispute Settlement in Nigeria ……………………………... 78

4.1.1 The Issue of Time …………………………………………………………………………. 78

4.1.2 The Issue of Place …………………………………………………………………………. 78

4.1.3 The Issue of non-consideration of Cultural Factors and Influences ………………………. 79

4.1.4 The Issue of Insincerity, Subjectivity and Bias …………………………………………… 80

4.1.5 The Issue of Parties Involved in the Settlement …………………………………………... 80

4.1.6 Inflexible and Cumbersome Dispute Resolution Mechanisms ……………………………. 83

4.1.7 The Power of the Minister ……………………………………………………………….... 83

4.2 General Barriers to Participation in Labour Disputes Settlement ………………………...… 84

4.3 Impacts of Labour Disputes on Nigeria’s Socio-economic Development …………………. 86

CHAPTER FIVE: SUMMARY OF FINDINGS, RECOMMENDATIONS AND

CONCLUSION

5.1 Summary of Findings ………………………………………………………………………. 88

5.2 Recommendations ………………………………………………………………………..… 90

5.3 Conclusion ……………………………………………………………………………......... 91

BIBLIOGRAPHY …………………………………………………………………………...…. 93
 ABSTRACT

In Nigeria and in virtually all countries of the world, dispute in the labour sector is almost
inevitable. Dispute occurs when two or more individuals co-exist and engage in interactions. For
a dispute to arise, there must be at least two parties involved. Oftentimes, it arises between
employers of labour and their employees. Sometimes, it ensues between or among employees and
in some cases, it occurs between employers of labour. In each case, certain legal frameworks and
dynamic mechanisms are deployed for its amicable resolution which are mostly the product of
collective agreement and may be otherwise spelt out by statute. This study therefore examines
critically the various labour dispute settlement mechanisms which includes Alternative Dispute
Resolution and Litigation while also interrogating laws and regulations enacted over time for the
settlement of labour disputes in Nigeria. More so, this project examines a number of regulatory
bodies and institutions established for the purpose of settlement of labour disputes. Some of these
bodies may not be primarily established for settlement of labour disputes but they are instrumental
for this purpose. It further considers the factors constituting challenge to the settlement of labour
disputes in Nigeria. Equally, it exposes the barriers militating against the effective resolution of
labour disputes which set a barricade in respect of access to justice. This essay offers a legal
exposition on the impacts and effects of labour disputes on the Nigeria’s socio-economic
development. It concludes by summarily drawing in-depth findings from the study and provides
recommendations towards industrial harmony and effective labour dispute settlement regime in
Nigeria.

Keywords: Labour, Dispute, Settlement, Alternative Disputes Resolution, Litigation.

CHAPTER ONE

GENERAL INTRODUCTION

1.1 BACKGROUND TO THE STUDY

Disputes are bound to happen in all human relationships, including labour relations where they are
more formal. 1 These disputes, often referred to as trade disputes, have social and economic effects
on society, affecting service delivery and productivity. 2 They impact the government, labour, and
management, with strikes leading to economic setbacks like loss of production, service disruptions,
high costs, and unemployment. 3 Trade disputes play a significant role in the economy and
maintaining order, but can also negatively impact the public. 4

1
S.A. Fagbemi, “An Overview of the Institutional Mechanisms for the Settlement of Labour Dispute in Nigeria,” US-
China Law Review (2014) 11(10), 1322-1335, 1322.
2
Ibid., 1323.
3
Ibid.
4
D.D. Philip, “A Comparative Analysis of Trade Disputes Settlement in Nigerian Public and Private Universities,”
Journal of Law, Policy and Globalization (2013) (18), 60-68, 60.
Various disputes in the workplace can arise from issues like pay, benefits, working conditions, job
security and stability, lack of union recognition, differences in leadership styles, communication
challenges, unfavourable working environments, layoffs and job cuts, rivalry between unions,
violations of rules or codes, dysfunctional or insufficient work equipment and unfair labor
practices.5

Historically, compensation and working conditions have consistently been key factors in sparkling
labour disputes.6 Compensation involves the subjective evaluation of an individual's contribution
to work.7 As such, conflicting expectations or assessments of pay between an organization and its
employees can lead to labour disputes. 8 Also, employee dissatisfaction with their working
conditions often plays a significant role in the prevalence of labour disputes.9

These disagreements, known as disputes of interest, involve conflicting interests between workers
and employers and are typically managed by a union through negotiations and the possibility of
industrial action. 10 In Nigeria, workers now extend their concerns beyond just labour rights to
include socio-economic issues, leading to trade disputes and strikes regarding various issues like
fuel price hikes, World Bank loans, and privatization of public enterprises.11

These disputes can have significant consequences for both the company and its employees,
affecting morale, productivity, and labour relations. They can impact production, employee
morale, and the organization’s reputation. When interpersonal conflicts occur in a professional
setting, productivity can decline, leading to reduced morale, increased stress, and lower job
satisfaction.12

5
M. Sverke and S. Goslinga, “The Consequences of Job Insecurity for Employers and Unions: Exit, Voice and
Loyalty,” Economic and Industrial Democracy (2003) 24(2), 241-270, 243.
6
Uzougbo and others, “Effective Strategies for Resolving Labour Disputes in the Corporate Sector: Lessons from
Nigeria and the United States,” World Journal of Advanced Research and Review (2023) 20(3), 418-424, 418.
7
C.O. Daniel, “Compensation Management and Its Impacts on Organisational Commitment,” International Journal
of Contemporary Applied Researches (2019) 6(2), 26-36, 27.
8
Uzougbo and others (n 6), Ibid.
9
M. Sverke and S. Goslinga (n 5), Ibid.
10
O.H. Ogworoka, “Labour Dispute Resolution in Nigeria,” International Journal of Innovative Legal & Political
Studies (2022) 10(2), 38-53, 40.
11
Ibid.
12
Uzougbo and others (n 6), Ibid., 418-419.
These factors can harm both individual and team efficiency, potentially compromising overall
company performance.13 Research indicates that labour disputes can lower morale, disrupt work,
decrease productivity, and even result in the loss of skilled employees. 14 Effective conflict
resolution methods are therefore vital in addressing these issues and promoting a cohesive work
environment, which in turn enhances organizational performance and upholds ethical labour
practices.

The Nigeria National Policy on labour relations places a strong emphasis on quickly resolving
labour disputes through specialized institutions. 15 Despite efforts to expedite the process,
historically, labour disputes have not been resolved as swiftly as desired. Additionally, the
expenses involved in settling these disputes are usually high and frequently leave all parties
involved dissatisfied.16 To address this, Nigeria has implemented several institutional mechanisms
to facilitate the prompt resolution of labour disputes.17

The main purpose of setting up a settlement mechanism is to temporarily suspend the employee’s
right to strike and offer efficient and timely ways to resolve conflicts or disputes, a key aspect of
labour law.18 However, although the Trade Disputes Act in Nigeria provides different mechanisms
to resolve labour issues, it still faces challenges.19 For instance, the Act arrogates to the Minister
of Labour and Productivity significant authority to address and resolve any trade disputes that may
occur.20

From the foregoing, there is therefore need for a critical appraisal of labour disputes settlement in
Nigeria. This long essay aims to examine the various mechanisms for the settlement of labour or
industrial disputes in Nigeria, the causes and forms of labour disputes, as well as the legal
frameworks for the settlement of labour disputes in Nigeria. It also examines the multifarious
institutions instrumental to labour disputes settlement in Nigeria. Furthermore, this project is

13
Ibid.
14
P. Parashar and R. Sharma, “Impact of Conflict on Productivity at Workplace,” Proceedings of the International
Conference on Research In Management & Technovation (2020) (24), 143-146, 143.
15
S.A. Fagbemi (n 1), Ibid., 1323.
16
Ibid.
17
Ibid.
18
O.G. Wosu, “The Procedures for Settlement of Trade Disputes in Nigeria,” African Journal of Law and Human
Rights (2022) 6(2), 45-51, 46.
19
Ibid., 51.
20
Ibid.
aimed at evaluating the impacts of labour dispute settlement on the socio-economic development
of Nigeria.

In addition, this long essay intends to interrogate the challenges encountered in the process of
resolving labour disputes and the factors which constitute barriers to access to labour disputes
settlement mechanisms for both employers of labour and employees. From the findings on these
challenges, this study seeks to provide recommendations for improving the deficiencies and
problems inherent in labour disputes settlement, particularly in Nigeria, and to suggest areas for
further research.

1.2 STATEMENT OF PROBLEM

Labour disputes have positive and negative impacts on various stakeholders, and they highlight
the interdependent relationship between the government and labour management. 21 These disputes
significantly affect the economy's stable and orderly growth and the preservation of social peace. 22
Often, the public bears the brunt of these disputes, particularly during major strikes in essential
services or industries. 23 Therefore, it becomes imperative to critically examine the existing legal
frameworks and their efficacy in addressing contemporary challenges and issues that fraught
labour disputes settlement in Nigeria.

To start with, one of the paramount problems within the purview of this long essay is that the
process for resolving labour disputes is overly complex, slow and rigid, which goes against the
intended purpose of providing a fair and prompt resolution. 24 A key principle of the National
Labour Policy is to resolve disputes quickly through established institutions. 25 However, it can
take up to 21 days for a dispute to even be reported to the Minister after the voluntary grievance
procedure fails. Following this, there are additional waiting periods at each stage of the process,
resulting in a lengthy timeline before a final decision is reached.

21
Anyim Francis Chukwudike, A Critique of Trade Disputes Settlement Mechanisms in Nigeria: 1968 to 2004 (PhD
Thesis Faculty of Management Sciences University of Lagos, 2009)
22
Ibid.
23
Ibid.
24
M.K. Adebayo and S. Olokooba, “Employment Disputes and Industrial Relations in Nigeria: The Role of
Alternative Dispute Resolution,” KIU Journal of Humanities (2018) 3(1), 123-137, 127.
25
Ibid.
For instance, the dispute has to spend another 14 days at the conciliation stage after which it gets
to the Industrial Arbitration Panel (IAP) through the Minister who also has 14 days within which
to do this. The Industrial Arbitration Panel (IAP) has to make its award within 42 days whereas
the parties have 21 days additional period within which they can raise objection to the award,
whereupon the dispute goes to the National Industrial Court (NIC) for a final verdict. This process
does not align with the efficient and impartial resolution of disputes expected in global labour
standards.26

Another notable issue arises from the requirement for disputes to be resolved through the Minister
of Labour, by virtue of the Trade Disputes Act 1990. This means workers and trade unions are not
allowed to present their disputes directly to arbitration bodies, leaving the decision solely in the
hands of the Minister. Consequently, concerns arise about impartiality, as the Minister is
responsible for appointing the conciliator and members of the Board of Inquiry and Arbitration
Tribunal, potentially opening the door to political interference in Nigeria. 27

In addition, it has become a practice that workers and trade unions need the Minister’s permission
or his discretionary referral to access justice, which restricts their freedom of association and due
process rights. Whereas, it would be better for them to have direct access to arbitral bodies for
dispute resolution instead of relying on the Minister’s discretion. 28 This long essay therefore seeks
to unravel the barriers and blockades placed on individual party's rights and access to justice in the
event of labour or industrial disputes.

From the foregoing, this long essay highlights the challenges and issues posed with the settlement
of labour disputes in Nigeria. It aims to address the lack of effectiveness in labour dispute
resolution mechanisms by filling the existing gaps and explore the rationales behind the persistent
increase in labour disputes in Nigeria, despite the presence of laws and institutional regulatory
bodies intended to prevent them.

1.3 RESEARCH QUESTIONS

26
J.O. Akinbode, Industrial Disputes in Nigeria (A Lecture delivered at the Award Fellowship and Induction of New
Members of Chartered Institute of Labour and Industrial Relations on 19th January, 2019).
27
Ibid.
28
O.G. Wosu (n 18), Ibid., 51.
To appraise the legal framework for the settlement of labour disputes in Nigeria, this long essay
will be guided on this discussion by the following research questions:

1. What are the arrays of mechanisms for settlement of labour or industrial disputes in Nigeria?

2. How effective are these mechanisms in addressing labour or industrial disputes in Nigeria?

3. What are the legal frameworks and institutional regulatory bodies for the settlement of labour
disputes in Nigeria?

4. Are these extant legal frameworks adequate in resolving labour disputes in Nigeria?

5. What are the problems and challenges facing the settlement of labour disputes in Nigeria?

1.4 AIM AND OBJECTIVES OF THE STUDY

The aim of this essay is to critically appraise the legal framework for the settlement of labour
disputes in Nigeria. The specific objectives of this long essay are to:

1. appraise the legal framework for the settlement of labour disputes in Nigeria.

2. examine the mechanisms for settlement of labour disputes in Nigeria.

3. evaluate the institutional regulatory bodies of labour and their functions towards the settlement
of labour disputes in Nigeria.

4. assess the challenges associated with labour disputes settlement as well as the impact of labour
disputes on the socio-economic development of Nigeria.

5. proffer recommendations for improving the inadequacies prevailing in settlement of labour

disputes.

1.5 SCOPE AND LIMITATION

The scope of this long essay is to appraise the legal framework for settlement of labour disputes in
Nigeria by considering the various laws and regulations governing matters of dispute between
employees and employers of labour. This essay will also examine the mechanisms for resolution
of labour or industrial disputes, the effectiveness of these mechanisms and the identifiable
challenges of labour disputes settlement in Nigeria.

More so, in discussing this subject, this essay will primarily make use of statutory provisions
pertaining to labour dispute settlement in Nigeria as well as copious international labour
instruments relevant to the subject. It will also employ both English cases and Nigerian cases in
illustrating the importance of labour disputes and the settlement of same via the various
mechanisms enunciated in this study.

Nonetheless, while this long essay aims to carry out a critical appraisal of the legal framework for
settlement of labour disputes in Nigeria, this project could be constrained in identifying sufficient
case study due to limited access to comprehensive data. As a result, this could pose limitations to
the generalization of the analysis and conclusions drawn in this study.

1.6 SIGNIFICANCE OF THE STUDY

The significance of this study, extends beyond the confines of legal academic evaluations only. It
aspires to touch upon even broader societal and economic implications, legal reforms, and the
extent to which the various mechanisms of labour dispute resolution truly achieve justice. This
long essay therefore, bears significance for several reasons, addressing critical issues that impact
both the legal framework and the parties involved in industrial disputes.

Firstly, the long essay addresses the various legal regimes for the settlement of labour disputes in
Nigeria. It analyses laws encapsulating the rights, mechanisms and procedures by which disputes
in the labour sector can be resolved. By exploring instances of manifestation of disputes in the
labour sector, the project sheds light into the applicability of disputes resolution mechanisms and
exposes the gaps within the existing system.

Secondly, with respect to the settlement of labour disputes in Nigeria, it has become notorious for
parties not to directly resort to the law court owing to some reasonable grounds. This long essay
therefore provides understanding of practicable reasons for the preference of Alternative Dispute
Resolution (ADR) mechanism in the event of labour disputes, mostly between employers of labour
and their employees.

Furthermore, this long essay seeks to analyse the various institutional systems, ministries and
parastatals put in place for the purpose of regulating labour or industrial disputes as well as their
roles in reform and policy making as a way of effecting notable changes and improvements in
industrial relations in Nigeria. More so, the long essay seeks to unravel the challenges associated
with the settlement of labour disputes in Nigeria, exposing the problems that may be encountered
in the pursuit of providing resolution to conflicts between employers of labour and their
employees. It also exposes the inherent gaps and deficiencies in each of the various mechanisms
available for the resolution of disputes in the labour sector in Nigeria.

This long essay serves as a valuable contribution to the current legal framework for the settlement
of labour disputes in Nigeria—providing prevalent occurrences and recommendations on how to
better ensure the effective resolution and regulation of labour or industrial disputes, thereby
minimizing retardation and fostering development in the labour sector in Nigeria.

1.7 RESEARCH METHODOLOGY

This long essay makes use of the doctrinal research method by relying on primary and secondary
sources of knowledge which include legislation, judicial authorities, articles in journals, law
reports, etc. The doctrinal research method deals with verifying existing knowledge, by making
use of existing laws, judicial authorities that are related to the subject matter, and authoritative
books and opinions of scholars.

The primary source of this long essay includes statutory provisions of the 1999 Constitution of the
Federal Republic of Nigeria (as amended), Labour Act, 2004, Trade Disputes Act, 1976,
Arbitration and Conciliation Act, 1998, Rules of Professional Conduct for Legal Practitioners,
2007, The Federal Competition and Consumer Protection Act (FCCPA), 2019, Arbitration and
Mediation Act, 2023, National Industrial Court Act, 2006, and judicial decisions reported in the
Nigerian Weekly Law Report (NWLR), Law Pavilion Electronic Law Report (LPELR) on matters
relating to settlement of labour disputes in Nigeria.
The secondary sources on the other hand include Nigerian and foreign textbooks from recognized
persons who are authorities on the subject matter, dictionaries, the internet, journals, magazines,
conference papers, practicable international instruments, and other materials that are instrumental
to the achievement of this project.

1.8 LITERATURE REVIEW

Olabiyi, 29 in his work explained the two categories of mechanisms put in place in Nigeria for the
resolution of industrial disputes and the different stages and procedures involved in the process.
He also highlighted the legal frameworks providing for and adopting each of these mechanisms
and procedures.

The work provided an understanding of why dispute resolution mechanisms work in one
environment or country but not in others, while carrying out an empirical study of Nigeria and
South Africa’s dispute resolution mechanisms in relation to multinational corporations. It further
examined some prevalent gaps in the dispute resolution mechanisms and procedures in Nigeria,
such as, the influence of Government on the effectiveness and integrity of settlement institutions
in Nigeria.

The work recommended that Nigeria should implement and stay abreast of international labour
standards and international best practices in labour law. In order to do this, the work further
recommended that voluntary and statutory dispute resolution mechanisms be made more robust
and enlarged to give way for consistency in application and periodic, frequent reviews.

This long essay seeks to build upon the existing knowledge of this particular literature by
examining the various labour or industrial dispute resolution mechanisms and procedures adopted
by each mechanism. The project also seeks to evaluate the legal frameworks providing for
mechanisms and procedures for the resolution or settlement of labour disputes in Nigeria.

29
O.J. Olabiyi, “A Study of Conflict Resolution Mechanisms and Employment Relations in Multinational
Corporations in Africa: Empirical Evidence from Nigeria and South Africa,” SA Journal of Human Resource
Management (2022) 20(0), 1-8.
Obi-Ochiabutor,30 in his article discussed the methods established to guarantee quick, just, and
effective resolution of trade disputes under the Trade Disputes Act, a statutory intervention for
managing labour relations. Additionally, his article addressed the widening of the National
Industrial Court’s authority in resolving trade disputes beyond what is outlined in the Trade
Disputes Act.

Furthermore, the article examined the methods and procedures of enforcement of the award of the
Industrial Arbitration Panel (IAP) in comparison with the enforcement of the ruling or judgment
of a formal court in the resolution of trade disputes. It highlighted the disadvantages and the gaps
in the enforcement of the award made by the Industrial Arbitration Panel (IAP).

The article recommended that the powers of the National Industrial Court (NIC) be expanded so
as to prevent industrial anarchy and to positively impact the stability of the nation’s security, socio-
economic development and growth. It states that enforcement of the law is the cornerstone of any
legal system and further recommended that government should ensure the strong enforcement of
these laws, including the judgments of the court. This long essay seeks to expand more on this
literature by examining the challenges and difficulties associated with the settlement of labour or
industrial disputes in Nigeria and the overbearing consequences of consistent labour disputes on
the social and economic development of Nigeria.

Abdulrahman and Rilwanu,31 in their work analyzed the systems within the Trade Disputes Act
that facilitate the resolution of trade disputes. Their work discovered that these mechanisms and
their associated processes are heavily influenced by the government, particularly through the
Minister of Labour’s office, which makes it challenging to attain justice in disputes involving the
government. Consequently, the work suggested restructuring these processes and mechanisms to
reduce the Minister of Labour’s significant powers in order to achieve impartial justice free from
government interference.

This current project seeks to build upon the existing knowledge of this particular literature by
examining the factors that serve as barriers and blockades to the effective realization of labour

30
C.C. Obi-Ochiabutor, “Trade Disputes Resolution Under Nigerian Labour Law,” Nigerian Juridical Review (2002-
2010) 9, 71-87.
31
S.T. Abdulrahman and S.M. Rilwanu, “The Statutory Regime for Resolution of Trade Disputes in Nigeria: A
Critical Overview,” Asian Journal of Social Science and Management Technology (2020) 2(5), 16-25.
dispute settlement in Nigeria and to thereupon provide recommendations for minimizing the
challenges to the attainment of justice in labour disputes in Nigeria.

Adebayo and Olokooba, 32 in their paper examined the increasing significance of alternative
dispute resolution in handling employment disputes and improving industrial relations. Their work
investigated how methods such as conciliation, mediation, and arbitration are utilized to resolve
individual workplace conflicts. It also looked at the current patterns in alternative dispute
resolution and concluded by emphasizing the advantages of using this approach over traditional
court processes due to its positive, efficient, and economical outcomes.

This current project seeks to expand more on this literature by exposing the existential gaps
prevalent in the usage of the alternative dispute resolution methods. It further seeks to pinpoint
mechanisms to improve these resolution methods for the purpose of realizing effective settlement
of labour disputes and ultimately, access to justice.

Okene and Otuturu,33 in their work explored the authority and abilities of the National Industrial
Court of Nigeria in settling labour disputes according to the Constitution of the Federal Republic
of Nigeria (Third Alteration) Act 2010. Their work delved into the typology of labour disputes,
fresh approaches in resolving labour disputes in Nigeria and the exclusive jurisdiction of the
National Industrial Court. It proposed the creation of a Labour Appeal Court to review decisions
of the National Industrial Court, following similar systems in the United Kingdom and South
Africa.

This current project seeks to build upon the existing knowledge of this literature by examining the
forms of labour disputes, various mechanisms and approaches to the settlement of labour or
industrial disputes in Nigeria. It equally seeks to probe the role and powers of the National
Industrial Court in the settlement of labour disputes in Nigeria as well as the possibility of further
appeal to the Court of Appeal.

32
Adebayo and Olokooba (n 24), Ibid.
O.V.C. Okene and G.G Otuturu, “The National Industrial Court and the Adjudication of Labour Disputes in Nigeria:
33

An Agenda for Reform,” DELSU Law Review (2017) 3(1), 205-239.

Ogworoka,34 in his work explored the methods of resolving labour disputes in Nigeria. His work
assessed the effectiveness of alternative dispute resolution mechanisms in settling labour-related
issues and identified factors that hinder their efficiency. His work affirmed that the use of
alternative dispute resolution in handling industrial disputes is a new approach in the labour
conflict resolution process of the twenty-first century. It recommended that the international
community, with the support of the United Nations, should prioritize job security and improved
working conditions. Additionally, it recommended that modifications be made to certain sections
of the Nigerian Trade Dispute Act relating to the qualifications of alternative dispute resolution
practitioners.

Furthermore, his work recommended raising awareness through public lectures to educate
academia on the advantages of utilizing alternative dispute resolution in addressing industrial
disputes. It also proposed that the Nigerian Universities Commission introduce a specialized
course on alternative dispute resolution in law faculties among others. This current project seeks
to utilize this specific literature, build upon it by assessing the dispute settlement mechanisms and
to evaluate the effectiveness and adequacy of these mechanisms by examining their strengths and
weaknesses.

Uzougbo and others,35 in their article analysed the reasons behind labour disputes in corporate
sector and compared the dispute resolution systems in Nigeria and the United States. Their article
also contrasted the approaches used to resolve labour disputes in both countries. The article pointed
out that both Nigeria and the United States have robust legislative frameworks that deal with
resolving labour disputes. It also stated that both countries recognize the importance of negotiation
and dialogue in solving labour disputes. According to the article, negotiation and conversation are
key factors in resolving disagreements and disputes within multinational companies in Nigeria.

Additionally, the article offered suggestions for effectively managing labour-related issues within
the business sector in Nigeria. It recommended that companies and businesses have clear and well-
defined policies in place for managing labour disputes and be equipped with skills, knowledge and
strategies for disputes resolution.

34
Ogworoka (n 10), Ibid.
35
Uzougbo and others (n 6), Ibid.
However, this long essay finds a research gap in the work of Uzougbo and others to the lack of an
effective and comprehensive legal regime on labour disputes settlement in Nigeria. Their work
also provided that one of the reasons for the instability in the socio-economic development of
Nigeria is the increasing rate of labour disputes, especially between government and the labour
sector. This current project therefore aims to fill this gap by stating the need to develop reformative
policies to reduce the rate of labour disputes in the labour sector in Nigeria.

Chukwudike,36 in his thesis, analyzed how well institutional mechanisms for settling trade disputes
function. He looked at how those involved in labour relations view the effectiveness of these
mechanisms and assessed the impact of statutory sanctions on number of reported disputes.
Furthermore, he identified obstacles that hinder the success and effectiveness of trade dispute
settlement mechanisms.

Chukwudike concluded by suggesting a new framework to enhance the efficiency, effectiveness,

and success of dispute settlement mechanisms. He recommended removing Industrial Arbitration
Panel (IAP) and National Industrial Court (NIC) from the bureaucracy of the public sector to
improve their performance. Additionally, he emphasized the importance of allowing parties to
choose how their cases are handled, in line with democratic principles. This current project seeks
to build upon this particular literature by examining the legal and institutional frameworks for
dispute resolution while also highlighting the bottlenecks warring against the effective functioning
of labour dispute settlement mechanisms in Nigeria.

Wosu’s article37 explored the framework for resolving trade disputes in Nigeria, focusing on the
protection of both employers and employees. Through a doctrinal analysis using primary and
secondary sources, the article delved into the enforceability of settlement procedures in Nigeria’s
legal system. It also compared Nigeria’s approach to dispute resolution with successful models
from countries like Britain, Japan, and South Africa. The article highlighted the need for legal
reforms and suggested implementing time-bound resolutions for disputes as key recommendations
for improving the settlement of trade disputes in Nigeria.

36
Chukwudike (n 21), Ibid.
37
Wosu, (n 18), Ibid., 46-51.
This current project seeks to adopt this specific literature by examining the established mechanisms
for the settlement of labour or industrial disputes in Nigeria. It seeks further to highlight salient
provisions of statutes relating to the labour dispute settlement. It also evaluates the gaps inherent
in these statutes while also making appropriate recommendations towards the improvement of
labour disputes settlement system in Nigeria.

Olatunji, Issah and Lawal, 38 in their article, examined the concepts of dispute and labour dispute.
They posited that one of the facts that have shaped human history is the fact of occurrence of
disputes. They further examined the manifestations and effects of industrial disputes on the growth
and development of work organisations, some of which were stated to include, lock-out, strike,
picketing, among others.

Furthermore, they looked at the existing disputes resolution mechanisms and their procedures as
provided by law. According to them, these statutory dispute settlement procedures have not
fostered industrial harmony due to their inherent challenges. Additionally, their article probed into
the reasons and factors for the ineffectiveness of these mechanisms. They recommended
improvement to the existing labour disputes resolutions mechanisms in lieu of eradication of same.
They also suggested an easier and a more rapid approach to the resolution of labour disputes in
Nigeria in order to ensure industrial development in the country.

This current project aims to adopt this literature by evaluating how incessant disputes in the
industrial or labour sector has stunted industrial growth and by extension, the social and economic
development of Nigeria. It looks to point out the statutory lapses that contribute to the inefficiency
of labour disputes settlement mechanisms and procedures. It equally seeks to recommend
important amendments to the statutory provisions relating to labour disputes settlement in Nigeria.

Uvieghara, 39 in his book, examined the legal framework for the settlement of labour disputes. His
book exposed some important legal instruments for the settlement of labour disputes in Nigeria. It
equally outlined the methods and procedures that must be followed by parties for the settlement of
labour disputes. His book further evaluated the awards of the Industrial Arbitration Panel (IAP),

38
Olatunji, A.G. Issah and E.E. Lawal, “Dispute Resolution Mechanisms and the Challenges of Harmonious Industrial
Relations in Nigeria,” Osun Sociological Review (2015) 3(1), 187-198.
39
E. Uvieghara, Labour Law in Nigeria, (1st edn, Malthouse Press Limited, Lagos, 2001), 415-439.
the rules governing them, duration within which the award must be made, objection to the award,
notice and publication, enforcement of the awards, among other issues. It also spelt out the powers,
practice and procedures of the Arbitration Tribunal, the National Industrial Court or a Board of
Inquiry. In addition, his book discussed the role and jurisdiction of the National Industrial Court
as well as its awards in the settlement of industrial disputes in Nigeria.

From the foregoing, the research gap which the current project seeks to fill is the ineffectiveness
of the dispute settlement methods as well as their inability to prevent proliferation of labour
disputes in Nigeria despite the existing legal framework for the settlement of labour disputes in
Nigeria. This current project also proposes amendments and reforms to the existing legal
frameworks for the purpose of providing a better dispute settlement environment in the labour
sector.

Agomo,40 in his book, examined the principle of collective bargaining and settlement of industrial
disputes in Nigeria. His work recognized free collective bargaining and voluntary settlement of
trade disputes with special reference to copious provisions of the Trade Disputes Act, 1976 as
amended. In addition, Agomo succinctly highlighted and expanded on the statutory mechanisms
for the settlement of industrial disputes in Nigeria while also pinpointing the inbuilt bottlenecks in
them towards the realisation of an effective settlement of industrial disputes. For instance,
according to him, these mechanisms have some procedures which are capable of slowing down
the settlement process and ultimately delaying justice.

His book also exposed some institutional regulatory bodies for settlement of industrial disputes,
some of which are Industrial Arbitration Panel (IAP) and the National Industrial Court (NIC)
through the instrumentality of the Trade Disputes Act, 1976 and the National Industrial Court Act,
2006. It systematically examined the jurisdiction of the Industrial Arbitration Panel (IAP) and the
National Industrial Court (NIC) as well as their roles and impacts in the settlement of industrial
disputes in Nigeria.

This current project seeks to expand on the existing knowledge of this specific literature by further
examining the inadequacies in the legal frameworks for the settlement of labour disputes as well

40
C.K. Agomo, Nigerian Employment and Labour Relations Law and Practice, (2nd edn, Concept Publications
Limited, Lagos, 2014) 311-317.
as their effects on the realisation of industrial peace in Nigeria. This project also seeks to provide
recommendations as to the improvement of labour disputes settlement regime in Nigeria.

Erugo,41 in his book, examined the resolution of employment and labour disputes, identifying two
forms of labour disputes. According to him, the first form involves disputes between the parties in
the main employment contract, while the second form involves trade disputes among trade unions,
employer organizations, and workers. He highlighted the distinct procedures for resolution of these
two strands of labour and employment disputes. He pointed out the Trade Disputes Act as the legal
framework where the procedures for resolution of labour disputes are specifically found. His work
further outlined the mechanisms provided by the Trade Disputes Act for the resolution of labour
disputes and the procedures thereto.

However, his book did not categorically highlight the inherent gaps in these mechanisms and
procedures as well as their bearing on industrial relations in Nigeria. This essay therefore seeks to
unveil these existing gaps and explore their effects on industrial relations in the Nigerian Labour
Sector while also providing useful recommendations necessary to bridge these gaps.

Emiola, 42 in his book, examined the procedures to be adopted in industrial negotiations to avoid
industrial conflicts and to ultimately set a path to industrial harmony. In his work, he discussed the
voluntary method by which employers and workers can negotiate the terms of their agreement and
also apprehended the power of the minister of labour to intervene in industrial disputes under the
Trade Disputes Act. His work recognized conciliation and arbitration as mechanisms for ensuring
industrial peace while also noting that arbitration is wider in scope than conciliation. The processes
attached to these mechanisms were also captured in his book. In addition, his book recognized
strikes and lockouts as the common results of industrial conflict.

However, the author did not reiterate the factors militating against the effective settlement of
labour disputes notwithstanding the presence of laws and institutional mechanisms in Nigeria. It
also did not categorically address the impacts industrial disputes can have on the socio-economic
development of Nigeria. These are some of the gaps this long essay aims to address.

41
S. Erugo, Introduction to Nigerian Labour Law, (1st edn, Princeton Publisher, Lagos, 2024), 383-399.
42
A. Emiola, Nigerian Labour Law, (3rd edn, Emiola Publishers Limited, Ogbomoso, 2000), 342-371.
Idubor,43 in his book, discussed the trade disputes settlement machinery. According to him, when
trade dispute arises, it manifests in various forms of industrial action such as strike, lockouts, work
to rule, go slow, etc. He discussed two types of labour disputes settlement. According to him, the
private grievance/negotiation settlement procedure is an internal machinery or charter for the
resolution of labour disputes. He also examined the external machineries for labour disputes
settlement which he regarded as one requiring third party intervention.

Furthermore, Idubor, in his book, made reference to the functions of the Industrial Arbitration
Panel (IAP) and the National Industrial Court (NIC) as well as the powers of the minister in the
settlement of trade or labour disputes. In addition, he observed that strikes and lockouts are the
common consequences of industrial disputes in Nigeria even in the essential services sector.

However, his book did not specifically highlight the inherent gaps in these mechanisms in recent
times and their effects on industrial relations. This long essay therefore seeks to expose these
existing gaps as well as their impacts on the social and economic existence of Nigeria. It also aims
to offer some practicable recommendations for improving these existing lacunas.

1.9 CHAPTER SYNOPSIS

This study is examined in five chapters, each chapter with its own focus. Chapter One provides an
introduction to the study, including the background, statement of problem, research question, aim
and objectives, scope and limitation of the study, significance of the study, research methodology,
literature review, and chapter synopsis.

Chapter Two addresses some essential concepts related to the subject of the study. It explains the
meaning of labour disputes and other ancillary terminologies and concepts. It equally covers the
causes, classification and types of labour disputes. It also examines the concept of Alternative
Disputes Resolution in the Nigerian Labour Law. It further discusses the right of appeal of parties
to labour dispute, the various mechanisms and procedures for settlement of labour disputes as well
as the historical antecedents of these mechanisms in Nigeria.

43
R. Idubor, Employment and Trade Dispute Law in Nigeria, (1st edn, Sylva Publications Ltd., Akure, 1999) 154-
167.
Chapter Three focuses on the legal and institutional regulatory framework for the settlement of
labour disputes in Nigeria. It exposes the legal regimes for the settlement of labour disputes,
including the Labour Act, 2004, Trade Disputes Act, 1976, Arbitration and Conciliation Act, 1998,
Arbitration and Mediation Act, 2023, National Industrial Court Act, 2006, among others. It further
examines various institutions and parastatals responsible for the settlement, control and regulation
of labour or industrial disputes in Nigeria.

Chapter Four examines the challenges and difficulties encountered in the settlement of labour
disputes using the various disputes resolution mechanisms there are. The chapter also pinpoints
the barriers to participation in dispute resolution. It further states the impacts which labour or
industrial disputes have on the social and economic development of Nigeria.

Chapter Five provides a summary of findings from the study along with observations made during
the research process. Recommendations are equally given based on these findings and
observations. The chapter also highlights contributions to knowledge made by this study along
with suggested areas for further studies. Finally, a conclusion is provided summarizing all key
points and implications of the study.
 CHAPTER TWO

CONCEPTUAL CLARIFICATION AND HISTORICAL BACKGROUND ON LABOUR

DISPUTES SETTLEMENT IN NIGERIA

2.1 Conceptual Clarification

2.1.1 Definition of Labour Dispute

Labour dispute is a term not specifically defined in any legislation, but is generally used to describe
disagreements between parties in an employment relationship regarding terms of employment such
as wages, hours, benefits, and working conditions. 44 These disputes can also involve conflicts that
arise during the establishment, execution, or termination of labor relations, including disputes
between workers’ representative organizations. 45

The National Industrial Court (NIC) Act 2006 defines a trade dispute as any dispute between
employers and workers or between workers related to employment or non-employment, terms of
employment, and working conditions.46 Similarly, section 48(1) of the Trade Disputes Act defines
a trade dispute as any dispute between employers and workers or between workers connected to
employment, non-employment, terms of employment, and physical conditions of work. 47
However, it is important to note that not every labour related dispute qualifies as a trade dispute.
The Court in NURTW v. Ogbodo,48 prescribed the components of a trade dispute as follows:

a) there must be a dispute;

b) the dispute must involve a trade and it must be between employers and workers, or workers
and workers; and
c) the dispute must be connected with the employment or non-employment or terms of
employment or physical condition of work of any person.

44
O.H. Ogworoka, “Labour Dispute Resolution in Nigeria,” International Journal of Innovative Legal & Political
Studies (2022) 10(2), 38-53, 39.
45
Ibid.
46
Section 54(1), National Industrial Court Act, 2006.
47
Cap, T8, Laws of the Federation of Nigeria 2004.
48
(1998) 2 NWLR (Pt. 537) 189
A dispute is any significant difference between the parties to the dispute, which can arise from
issues such as workplace discipline, complaints or grievances, dismissals, wages, and other
working conditions.49 The terms trade dispute and labour dispute are often used interchangeably,
and the term industrial dispute is similar but can vary in breadth. For the purpose of this study,
these concepts are also used interchangeably.

2.1.2 Causes of Labour Dispute

Labour disputes in Nigeria have historically arisen from employment or non-employment issues.
Various factors have been highlighted as contributing to these disputes, including victimization of
workers or union officials, delayed payment of salaries, government indifference towards
minimum wage reviews, failure to implement agreements, worker redundancies, non-remittance
of deductions, unfair termination of employment, refusal to engage in negotiations, collective
bargaining deadlock, violation of collective agreements, casualization and outsourcing of labor,
inadequate funding for tertiary institutions, discrimination, and sexual harassment.50

It is believed that a key reason for industrial disputes and strikes is the breakdown of collective
bargaining. It is also argued that while negotiations between workers and employers may be
successful, there is no guarantee that the resulting agreement will be honored, leading to conflicts.
This highlights that failure to stick to the terms of collective bargaining agreements is a significant
factor in trade disputes in Nigeria. 51 Similarly, it has also been noted that internal politics within
the Nigerian Labour Congress (NLC) and its affiliated unions can also lead to serious industrial
conflicts.52

Several factors which lead to industrial disputes have been highlighted. These include the refusal
of union recognition, where workers go on strike to be acknowledged by the employer for
collective bargaining. Bringing attention to the challenges faced by workers is another significant
reason for labour strikes. Issues such as unfavorable working conditions, low pay, and inadequate
welfare services push workers to take industrial action. An example of this is when medical doctors

49
S.A. Fagbemi, “An Overview of the Institutional Mechanisms for the Settlement of Labour Dispute in Nigeria,”
US-China Law Review (2014) 11(10), 1322-1335, 1322.
50
J.O. Akinbode and A.I. Ebeloku, Understanding Industrial Relations system in Nigeria (2nd edn, Ibadan: Kenny-D
Printers 2017) 56.
51
O.V.C. Okene, Labour Law in Nigeria: Selected Essays (1st edn, Faculty of Law, RSU Port Harcourt 2019) 156.
52
Ogworoka (n 1), Ibid., 41.
in Edo State went on strike in 2010 due to the high levels of insecurity, including kidnapping and
killings of their colleagues.53

Incorrect prioritization by management in Nigerian industries can further be a major factor leading
to disputes.54 When companies focus more on capital input than on valuing their workers, it can
lead to conflict and resentment. Disagreements can also occur due to unequal information between
workers and employers, leading to clashes during negotiations. This can result in poor pay, lack
of welfare and substandard working conditions for employees, which in turn can lead to frequent
labor disputes. Employers’ indifference to workers’ well-being may also lead to decreased
productivity, as workers may become disengaged and resort to sabotaging the company’s interests
or showing up late to work.55

It is also believed that the failure of reaching collective agreements is a significant factor in labour
disputes.56 In the case of Union Bank of Nigeria Ltd v Edith,57 the court emphasized that when an
employer disregards or violates a term in a collective agreement, the appropriate course of action
would be for the union and the employer to negotiate and potentially go on strike if necessary.

2.1.3 Classification of Labour Dispute

Labour disputes can be classified into two main main categories: Individual disputes, involving
one employee and their rights at work, such as payment issues and other entitlements of individual
employees or unfair treatment, and Collective disputes involving a group, usually a union, and
typically focused on economic matters like wages and benefits. 58 The National Industrial Court
Act 2006 defines Collective disputes as trade disputes or organizational disputes, which can
involve issues related to employee employment, terms of work, collective agreements, and alleged

53
C.U. Wokoma, “The Effects of Industrial Conflicts and Strikes in Nigeria: A Socio-Economic Analysis,”
International Journal of Development and Management Review (2011) 6(1), 32.
<https://www.ajol.info/Index.php/ijdmr/article/view/66976> accessed September 3, 2024.
54
Ogworoka (n 1), Ibid., 42.
55
Ibid.
56
Okene (n 8), Ibid.
57
[1993] 4 NWLR (Pt. 287) 288.
58
ILO, Collective Dispute Resolution through Conciliation, Mediation and Arbitration: European and ILO
Perspectives (A High–level Tripartite Seminar On The Settlement Of Labour Disputes Through Mediation,
Conciliation, Arbitration And Labour Courts at Nicosia, Cyprus on 18 th-19th October, 2007).
disputes. 59 Organizational disputes can be inter-union or intra-union, with the latter typically
arising from within a trade union due to leadership conflicts or interpretation of union rules.

Collective disputes can further be divided into two sub-categories: Disputes of Right and Disputes
of Interest. A Dispute of Right arises where there is disagreement over the implementation or
interpretation of statutory rights, or the rights set out in an existing collective agreement. By
contrast, a Dispute of Interest has to do with cases where there is disagreement over the
determination of rights and obligations, or the modification of those already in existence. Disputes
of interest typically arise in the context of collective bargaining where a collective agreement does
not exist or is being renegotiated.60

2.1.4 Types of Labour Disputes

2.1.4.1 Strike

Strikes are commonly understood in legal doctrine as a deliberate action taken by workers to halt
work in order to pressure their employer to meet their demands. 61 Lord Denning in Tram Shipping
Corporation v Greenwich Maine Incorp.,62 emphasised that strike is:

“…a concerted stoppage of work by men, done with a view to improving their wages or
conditions of employment, or giving vent to a grievance or making a protest about
something or sympathizing with other m workmen in such endeavor. It is distinct from
stoppage brought by an external event such as a bomb scare or by apprehension of
danger.”63

The Trade Dispute Act in Nigeria specifically gives a succinct description of strike in the following
manner:

“The cessation of work by a body of persons employed acting in combination, or a

concerted refusal or a refusal under a common understanding of any number of persons
employed to continue to work for an employer in consequence of a dispute, done as a means
of compelling their employer or any person or body of persons employed, or to aid other

59
Section 54(1), National Industrial Court Act, 2006.
60
ILO (n 15), Ibid.
61
Okene (n 8), Ibid., 186.
62
[1975] All E.R. 898, 990
63
Ibid.
 workers in compelling their employer or any persons or body of persons employed, to
accept or not to accept terms of employment and physical conditions of work.” 64

According to the Act, in the definition above, “cessation of work” includes deliberately working
at less than usual speed or with less than usual efficiency; and “refusal to continue to work”
includes a refusal to work at usual speed or with usual efficiency. 65 This is to say that a strike
involves a collective cessation of work by employees with the intention of improving their pay or
working conditions.

The right to strike, derived from the workers’ right to unionize as provided by section 40 of the
Nigerian Constitution, 66 guarantees every individual (including workers and their unions) the
freedom to join, form, or belong to any trade union of their choice to promote and protect their
interests without interference.67 Therefore, the right to strike is a crucial component of trade union
rights. However, it has been affirmed by the Supreme Court in the case of National Union of
Electricity Employees v Bureau of Public Enterprises 68 that the fundamental right to strike
guaranteed under section 40, as well as other rights under sections 37, 38, 39, and 41 of the 1999
Constitution, must be interpreted in light of what is reasonable in a democratic society.

It is important to note from the above definitions that a strike must involve multiple individuals
acting together against their employer to be considered valid, and it must aim to enhance the terms
and physical conditions of employment. It is also clarified that a single person stopping work or a
group ceasing work due to external events like security threats does not constitute a strike.

2.1.4.2 Lock-out

Lock-out is the opposite of a strike, where the employer can prevent employees from working by
locking them out of the workplace. It is a form of industrial action used by employers to enforce

64
Section 48, Trade Disputes Act, 2004.
65
Ibid.
66
Constitution of the Federal Republic of Nigeria 1999 (as amended)
67
N.A.P.P.S & Ors v. N.U.T (2012) 28 NLLR (Pt 81) page 483 NIC; See also RE: Union of Ifelodun Timber Dealers
and Allied Workmen (1964) 2 ALL NLR 62; See also ILO Convention No. 87 of 1948 and Article 2 of ILO
Convention 87 of 1948.
68
[2010] 7 NWLR (Pt 1194) 538, 574, paras d-c.
their terms and conditions. While a strike is a way for workers to express grievances, a lock-out is
a way for employers to protect their business and push employees to accept their demands.69

The Trade Dispute Act defines a lock-out as:

“The closing of a place of employment, or the suspension of work, or the refusal by an

employer to continue to employ any number of persons employed by him in consequence
of a dispute, done with a view to compelling those persons, or to aid another employer in
compelling persons employed by him, to accept terms of employment and physical
conditions of work.”70

In the recent case of Federal Government of Nigeria (FGN) v. Academic Staff Union of
Universities (ASUU),71 the National Industrial Court noted the disparity between the provisions of
the Trade Disputes Act and the ILO Convention (No 87) on the determination of lockout and strike
in Nigeria.

Section 43 of the Trade Disputes Act provides as follows:

“(1) Notwithstanding anything contained in this Act or in any other law –

(b) where any employer locks out his workers the workers shall be entitled to wages and
any other applicable remuneration for the period of lockout and the period of the lockout
shall not prejudicially affect any rights of the workers being rights dependent on the
continuity of period of employment.

(2) If any question should arise as to whether there has been a lockout for the purposes of
this section, the question shall on application to the Minister by the workers or their
representatives be determined by the Minister whose decision shall be final.”

On the other hand, paragraphs 907, 909 and 910 of the International Labour Organisation’s (ILO’s
Freedom of Association) Convention acknowledge that the responsibility for declaring a strike or
lockout illegal should not lie with the Government, but with an independent and impartial body,
which has the confidence of the parties involved; and that the judicial authority is best placed to
act as an independent authority.

69
J. Hamark, “Strikes and Lockouts: The Need to Separate Labour Conflicts,” Economic and Industrial Democracy
(2021) 00(0), 1-20, 7. <Sagepub.com/journals-permissions DOI: 10.1177/0143831X211049274
Journals.sagepub.com/home/eid> accessed September 3, 2024.
70
Section 48(1), Trade Disputes Act, 2004.
71
(Unreported) Suit No: NICN/ABJ/270/2022, ruling delivered on 30 May, 2023.
Thus, according to the court, section 43(2) of the Trade Disputes Act, in providing that “if any
question should arise as to whether there has been a lockout for the purposes of this section, the
question shall on application to the Minister by the workers or their representatives be determined
by the Minister whose decision shall be final”, falls foul of Convention No. 87 by making the
decision of the Minister to be final. According to the court in this case, in any event, the
determination of the question whether there has been a lockout, is a question for the court to
determine, not for the Executive arm of government. To that extent, section 43(2) of the Trade
Disputes Act was said to fall foul of section 6 of the 1999 Constitution, which places judicial power
in the Judiciary, and not the Executive arm of government, which is what the Minister responsible
for labour represents.

2.1.4.3 Picketing

Picketing is used by striking workers to convince others to join the strike, where a group stands at
a workplace’s entrance during a strike to persuade others not to work.72 It is seen as a peaceful
way to gather support and disrupt business operations in order to make the strike more effective.
Put differently, pickets are regarded as a type of protests that take place outside or at the entrance
of a workplace, business, or place of employment and are typically connected to a walkout. 73 It
involves union members moving about to various workplaces to bar other employees or suppliers
from entering the structure in an effort to disrupt operations and make the strike productive and
effectual. Picketing is a striking means for employees to convey their discontent with management,
and if it persists, it can result in substantial reductions in a company’s output.74

In Nigeria, peaceful picketing is legally permitted for individuals or groups involved in a trade
dispute to peacefully communicate or persuade someone regarding work-related matters. The
Trade Unions Act provides that:

“It shall be lawful for one or more persons, acting on their own behalf or on behalf of a
trade union or registered federation of trade unions or of an individual employer or firm
in contemplation or furtherance of a trade dispute, to attend at or near a house or place
where a person resides or works or carries on business or happens to be, if they so attend

72
E. Webster and G. Simpson, “Crossing the Picket Line: Violence in Industrial Conflict -the Case of the Afcol
Strike,” Industrial Relations Journal of South Africa (1990) 11(4), 15-32, 17.
73
Ibid.
74
Ibid., 18.
 merely for the purpose of peacefully obtaining or communicating information or of
peacefully persuading any person to work or abstain from working.”75

The aforementioned suggests that lawful peaceful picketing is permitted to encourage workers to
continue their strike and force the employer to comply with their requests for favorable working
conditions.

2.1.5 Alternative Dispute Resolution (ADR)

Alternative Dispute Resolution (ADR) lacks a widely recognized theoretical or abstract definition.
However, it is commonly understood as a collection of methods and approaches intended to allow
legal conflicts to be settled out of court for the mutual benefit of all parties involved, or to avert
legal disputes that would otherwise be brought before the courts.76 It has also been defined as “a
series of methods to resolve conflicts outside of court in a faster, more cost-effective manner…”
or processes and methods utilized in the settlement of conflicts, either in addition to or as
supplementary to the traditional dispute resolution mechanism of the court. 77

There are two ways to categorize ADR procedures: rights-based and interests-based. In interests-
based ADR, the focus is on understanding and addressing the true needs and concerns of the parties
involved. This approach often results in creative solutions that may not have been considered in a
more positional negotiation. Wage negotiations, for example, may be resolved by incrementally
increasing wages over the course of a contract or tying them to a cost-of-living formula, which
meets the employer’s desire to control costs and the employees’ desire for fair compensation. 78

On the other hand, rights-based ADR focuses on the legal rights of the parties and seeks to predict
the outcome of the dispute based on how it would likely be decided in court. This approach may
be facilitated by seeking the opinion of a neutral third party on the relative merits of the parties’
positions. However, settlement may ultimately depend more on the practical needs and interests
of the parties involved, rather than a strict adherence to legal rights. 79

75
Section 43, Trade Unions Act, 2005.
76
B.E. Ewulum, “Alternative Dispute Resolution Mechanisms, Plea Bargain and Criminal Justice System in Nigeria,”
NAUJILJ (2017) 8(2), 119-124, 119.
77
E.E. Uwazie, “Alternative Dispute Resolution in Africa: Preventing Conflict and Enhancing Stability,” Africa
Center for Strategic Studies (2011) (16), 1-6, 2. <www.africacenter.org> accessed September 3, 2024.
78
Ibid.
79
Ibid.
In a distinct conceptual framework, various dispute resolution procedures are analyzed along a
“spectrum of intervention.” For instance, the procedures are ranked according to how much
influence and control the disputing parties have over the resolution. When a dispute is settled
through direct negotiation between the parties, for instance, the parties have the most control; when
it is settled through a formal trial by a third party, the parties have the least control. Nevertheless,
whatever form ADR takes, the desire to reach a swift settlement is crucial to the parties, and it
occasionally may persuade them to give up their legal rights or interests.80

2.1.6 Forms of ADR Mechanisms in Nigerian Labour Law

2.1.6.1 Mediation

A third party who is regarded as acceptable, impartial, and neutral and who has little or no authority
to make decisions on behalf of the parties involved in a dispute but who helps them voluntarily
come to a mutually agreeable resolution of their differences is known as a mediator. 81 Apart from
tackling significant matters, mediation can also enhance or create relationships based on mutual
respect and trust, or end partnerships in a way that minimizes expenses and emotional distress.
When parties are deeply divided and unwilling to start a constructive conversation or when they
have been speaking but have come to a stalemate that seems intractable, mediation can be helpful.
The main recommendations a mediator offers the parties regarding how to get to an agreement are
procedural.82

A mediator may occasionally make a significant suggestion to encourage the parties to consider a
wider range of potential resolutions. He frequently works one-on-one with parties or in caucuses
to create recommendations that could get the parties closer to a compromise or to investigate viable
options for resolution. 83

80
D.S. Sisodiya and S. Dwivedi, “The Role of ADR in Resolving Disputes Related to Medical Negligence,”
International Journal of Law and Social Sciences (2023) 9(1), 34-41, 35. <
https://doi.org/10.60143/ijls.v9.i1.2023.82> accessed September 3, 2024.
81
J. Nwazi, “Assessing the Efficacy of Alternative Dispute Resolution (ADR) in the Settlement of Environmental
Disputes in The Niger Delta Region of Nigeria,” Journal of Law and Conflict Resolution (2017) 9(3), 26-41, 29.
<http://www.academicjournals.org/JLCR> accessed September 3, 2024.
82
Ibid.
83
K.A. Rahman, “Mediation and Mediator Skills: A Critical Appraisal,” Bangladesh Research Foundation Journal
(2012) 1(1), 223-232, 224. <DOI: 10.2139/ssrn.3231684> accessed September 3, 2024.
The procedure is totally voluntary, less formal than arbitration, and the parties are free to end it at
any moment. Parties do not need to have legal counsel in order to use mediation; nonetheless,
attorneys may participate in the process. As a result, the mediator can only actively participate in
the bargaining process; he cannot force a settlement; instead, he can help shape ideas that will
satisfy both sides’ interests and lead to reconciliation.84

2.1.6.2 Negotiation

Negotiation is the most common and well-known form of Alternative Dispute Resolution. It
involves a discussion aimed at reaching a compromise without the involvement of third parties.
This process has become essential in our daily interactions, occurring in nearly every exchange
between individuals. Rather than being an end in itself, negotiation serves as a means to achieve a
mutually favorable resolution to disputes. 85 According to Black’s Law Dictionary, it is defined as
“a consensual bargaining process in which the parties attempt to reach agreement on a disputed or
potentially disputed matter. Negotiation usually involves complete autonomy for the parties
involved without the intervention of third parties.”86

In negotiation, the parties maintain full control over the process and outcome, unlike in arbitration
or mediation, as they engage directly or through a representative. When agreements are made
through this process, the parties are obligated to abide by them since they have crafted both the
process and the solution. Additionally, professional negotiators with expertise in specific fields
may be called upon to assist less experienced parties during negotiations. 87

2.1.6.3 Conciliation

Conciliation involves bringing in an impartial party or parties chosen by those in dispute to assist
in reaching a resolution through a specific process. 88 Essentially, the conciliator’s role is to
facilitate the settlement. It is a method of resolving disagreements where a neutral third party,

84
Ibid., 225.
85
Nwazi (n 34), Ibid., 30.
86
Bryan A. Garner (ed.), 9th ed.
87
Nwazi (n 34), Ibid., 30.
88
U. Shinde, “Conciliation as an Effective Mode of Alternative Dispute Resolving System,” Journal of Humanities
And Social Science (2012) 4(3), 1-7, 3. <www.Iosrjournals.Org> accessed September 3, 2024.
known as a conciliator, is employed by the disputing parties to promote strong and positive
relationships. 89

2.1.6.4 Arbitration

Arbitration is a formal process for resolving disputes where parties agree to abide by the decision
of an arbitrator that is typically final and legally binding. In a workplace setting, formal institutions
like the National Industrial Court of Nigeria (NICN) and The Industrial Arbitration Panel (IAP)
are in place to address labour disputes through arbitration. 90

2.1.6.5 Adjudication

Adjudication, like arbitration, is a common method of resolving labour disputes. In adjudication,

all parties involved in the conflict come together in a formal setting, such as a panel or tribunal, to
address the issue. Adjudication is another form of dispute settlement that has been developed since
the traditional period. If conciliation efforts and internal dispute resolution processes are
unsuccessful, adjudication may be the next step in resolving the disagreement. 91

2.1.7 Mechanisms and Procedures for Labour Dispute Settlement

2.1.7.1 Internal Settlement Mechanism

As stated in section 4(1) of the Trade Disputes Act,92 parties involved in a trade dispute should
attempt to resolve it using any pre-existing procedures agreed upon in a collective agreement or
other agreement between the parties, apart from the provisions of the Act. This rule-making role
of collective bargaining involves including provisions in the collective agreement that regulate
employment relationships, settle disputes, govern relations between parties, and encourage worker
participation.93

89
Ibid.
90
Olatunji, A.G. Issah and E.E. Lawal, “Dispute Resolution Mechanisms and the Challenges of Harmonious Industrial
Relations in Nigeria,” Osun Sociological Review (2015) 3(1), 187-198.
91
Ibid.
92
Cap, T8, Laws of the Federation of Nigeria 2004.
93
O.A. Orifowomo and O.A. Ashiru, “Settlement of Trade Disputes: Nigeria’s Labour Court in Perspective,” Journal
of Law, Policy and Globalization (2015) 37, 150-164, 153. <www.iiste.org> accessed September 3, 2024.
However, the provision does not require the parties to comply with the agreed-upon procedure if
no such agreement exists. In such cases, the procedures of the Act will apply. If there is an
agreement, but one or both parties choose not to follow the agreed-upon procedure, it may not be
legally enforceable, especially if it is a collective agreement.94

The parties may also agree to use dispute resolution methods outside of the provisions of the Act.
This raises the question of whether the parties can exclude the provisions of the Act from applying
to them. While such an agreement is not illegal, if the parties fail to adhere to it, the other party
can still seek recourse under the Act’s established procedure, starting with mediation.

In summary, collective agreements may not be legally binding under common law, and the Trade
Disputes Act does not compel parties to follow the agreed-upon procedure. However, if the parties
fail to comply with their agreement or the Act’s established procedure, the other party may still
seek legal recourse under the Act.95

2.1.7.2 Mediation

When there is no established method for settling disputes or if the existing method has failed, the
parties involved should meet with a mediator within seven days of the failure or the emergence of
the dispute.96 If a dispute is not resolved within 7 days of appointing a mediator, it must be reported
to the Minister 97 in writing within 3 days after that period ends. 98 The report should detail the
points of disagreement and the actions taken by both parties to reach an agreement.99 Additionally,
the Minister has the authority to intervene in a trade dispute by informing the involved parties in
writing about the apprehension and suggesting steps to resolve the conflict, which could include
appointing a conciliator, referring the matter to the Industrial Arbitration Panel, or initiating a
board of inquiry under section 33 of the Act.100

2.1.7.3 Conciliation

94
Ford Motor Co. Ltd v. Amalgamated Union Of Engineering And Foundry Workers (1968) 2 Q.B.303
95
Orifowomo and Ashiru (n 46), Ibid.
96
Section 4(2), Trade Disputes Act, 2004.
97
“Minister” means the Minister charged with responsibility for matters relating to the welfare of labour; section 48
(1), Trade Disputes Act, 2004.
98
Section 6(1), Trade Disputes Act, 2004.
99
Section 6(2), Ibid.
100
Section 5(1) & (2), Ibid.
The Minister has the authority to choose a conciliator who will investigate the reasons and details
of the dispute and try to resolve it through discussions with the parties involved. 101 If an agreement
is reached within 7 days, the conciliator must inform the Minister and provide a summary of the
terms. If no agreement is reached within 7 days, the conciliator must inform the Minister about the
lack of progress.102 However, by the provisions of section 8 (3) of the Trade Disputes Act, where
an agreement is reached, the memorandum of settlement will be signed by the parties. The
memorandum of settlement signed at the statutory conciliation meeting, and the terms recorded
therein are binding on the employers and workers to whom those terms relate. The use of the word
“shall” in the statute is mandatory. This was reiterated by the court in Arthur Nwankwo & 7 Ors v
Alhaji Umaru Yar’Adua & Ors. 103 Similarly, in Williams v Williams,104 as well as in Williams v
Registrar of Titles, Lagos State & Ors, 105 the court held that where parties have voluntarily entered
into an agreement and duly endorsed it, the full intent and purpose of such agreement must be
honoured in good faith.

In addition to the above, if the Minister believes that the rules of the Act regarding resolving trade
disputes have not been followed properly, he will send a written notice to the involved parties
outlining the actions they need to take and the deadline for doing so. If the issue is still unresolved
after the specified time or after 14 days from the notice issuance if no deadline was set, the Minister
can resort to actions such as conciliation, arbitration, NIC referral, or forming a board of inquiry. 106

The Minister is empowered to establish a board of inquiry as outlined in Sections 33 and 34 of the
Trade Disputes Act.107 This serves as a method to resolve trade disputes. According to Section 33
(1), the board is required by law to investigate the reasons and details of the specific trade dispute
and present a report to the Minister.

2.1.7.4 Industrial Arbitration Panel (IAP)

101
Section 8(1) & (2), Ibid.
102
Section 8(3) & (5), Ibid.
103
(2010) LPELR-2109 (SC).
104
(2014) 15 NWLR (Pt 1430) 213.
105
(2016) LPELR-41420 (CA).
106
Section 7; see also sections 8, 9, 17 & 33, Ibid.
107
Cap, T8, Laws of the Federation of Nigeria 2004;
Under section 9 of the Trade Disputes Act, if mediation fails within 14 days of the Minister
receiving the report, the matter will be passed on to the Industrial Arbitration Panel. According to
section 13 of the Act, the panel must provide its decision within 21 days of formation, or within a
timeframe approved by the Minister in certain cases. The award will only be shared with the
Minister, who will then send a copy to the involved parties.

If the Minister does not receive any objections from either party, he will officially announce the
award in the Federal Gazette, making it a legally binding decision for the employers and workers
involved.108 However, if there is a valid objection, the Minister is required to refer the dispute to
the National Industrial Court according to section 14 of the Act.

If both a mediator109 and a conciliator110 are unable to resolve a dispute involving workers in
essential services, and the Minister deems it unsuitable to refer the dispute to an arbitration
tribunal, section 17 of the Act allows for the dispute to be directly referred to the National Industrial
Court within 7 days of receiving the conciliator’s report. In this scenario, the dispute skips
arbitration and is brought directly to the National Industrial Court.111

2.1.7.5 The Board of Inquiry

Ad hoc conflicts could also be settled by the board of inquiry. However, this approach has not been
utilized very often. When a trade disagreement arises or is suspected, the labour minister may order
an investigation into the facts and reasons behind the conflict by a board of inquiry. 112 The board
will look into the subject and provide a report to the minister. 113 The Minister also has the
authority, at his discretion, to refer any other issue pertaining to the working conditions in Nigeria
to a board of inquiry. The board of inquiry will look into the problem and provide a report to the
Minister.114 After receiving these reports, the Minister may order that any information gathered or
decisions made by the board of inquiry during or following the investigation be published or

108
Section 13, Trade Disputes Act, 2004.
109
Section 6(1), Ibid.
110
Section 8(5), Ibid.
111
See Trade union members of the Joint Health Sector Unions (JOHESU) v. Federal Ministry of Health, Suit No:
NICN/ABJ/238/2012, Judgment delivered 27/07/2013.
112
Section 33(1), Trade Disputes Act, 2004.
113
Ibid.
114
Section 33(2), Trade Disputes Act, 2004.
disseminated in any way he sees proper.115 This is the purport of sections 33 and 34 of the Trade
Disputes Act.

2.1.7.6 National Industrial Court (NIC)

The NIC was initially established through the Trade Disputes Act 2004. The specific provision in
part II of the Act that led to the creation of the National Industrial Court has been replaced by the
National Industrial Court Act, 2006.116 In cases where the minister receives a report about a trade
dispute and determines that it involves workers in essential services or that arbitration would not
be suitable, the minister is required to refer the dispute to the National Industrial Court within
seven days of receiving the report under section 8(5) of the Act.117

Likewise, the Trade Disputes Act states that if a formal objection to the decision of an arbitration
tribunal appointed under the Act is submitted to the Minister within the specified timeframe and
in the manner outlined in section 13(2) of the Act, the Minister must promptly transfer the dispute
to the National Industrial Court established by the Act.118 In summary, the Trade Disputes Act
states that if a notice of objection to an arbitration tribunal’s award is submitted to the Minister, as
outlined in section 13(2) of the Act, the Minister must immediately refer the dispute to the National
Industrial Court (NIC) established by the Act.

This can occur in two situations: first, when a report of an amicable settlement under section 6(1)
indicates that the dispute involves employees in an essential service, and referring it to an
arbitration tribunal would be inappropriate or cause delays. In this case, the Minister is required
by law to refer the dispute to the NIC for resolution within seven days of receiving the report.
Second, when there is an objection to the award of an arbitration tribunal appointed by the Minister
under section 9 of the TDA, in accordance with section 13(2), the Minister must refer the dispute
to the NIC.

115
Section 34, Ibid.
116
Ogworoka (n 1), Ibid., 49.
117
Section 17, Trade Disputes Act, 2004.
118
Section 14(1), Ibid.
The NIC has the authority to hear appeals from arbitral tribunal decisions on specified disputes
under subsection 1(a) of the Act.119 Therefore, parties to any trade dispute have the legal right to
seek adjudication or interpretation of awards or agreements from the NIC. Notwithstanding the
provisions of the Trade Disputes Act however, section 19(d) of the 1999 Constitution of the
Federal Republic of Nigeria (as amended) also specifically provides for the settlement of disputes
by Arbitration, Mediation, Conciliation, Negotiation and Adjudication.

2.1.8 Appeals From The National Industrial Court (NIC)

An opportunity for appeal exists for cases from the National Industrial Court to the Court of
Appeal. If a party is not satisfied with a ruling from the National Industrial Court, they have the
option to appeal to the Court of Appeal. Section 243(2) and (3) of the Constitution120 provides in
the following manner:

(2) An Appeal shall lie from the decision of the National Industrial Court as of right to the
Court of Appeal on questions of fundamental rights as contained in Chapter IV of this
Constitution as it relates to matters upon which the National Industrial Court has
jurisdiction.

(3) And Appeal shall only lie from the decision of the National Industrial Court to the Court
of Appeal as may be prescribed by an Act of the National Assembly;

Provided that where an Act or Law prescribes that an appeal shall lie from the decisions
of the National Industrial Court to the Court of Appeal, such Appeal shall be with the leave
of the Court of Appeal.

Over time, there have been various conflicting interpretations and decisions on whether an appeal
can be made to the Court of Appeal from the National Industrial Court regarding employment,
labour, and industrial disputes, except in cases concerning Fundamental Human Rights. Cases such
as Local Government Service Commission, Ekiti State & Anor v Mr. M.A. Jegede121 and Local
Government Service Commission, Ekiti State v Mr. M.K. Bamisaye122 have examined this issue.

The interpretation of section 243(2), which limits the right of appeal, can vary. It appears to restrict
the right of appeal to only issues related to fundamental rights in Chapter IV of the Constitution

119
Section 7(4), Ibid.
120
1999 Constitution of the Federal Republic of Nigeria (as amended).
121
(2013) LPELR 21131
122
(2013) LPELR 20407
within the National Industrial Court’s jurisdiction. This interpretation excludes many other
possible violations that fall under the extensive jurisdiction granted by section 254C. Limiting the
scope of appeal to only fundamental rights is a clear obstacle to the right to appeal in all other
cases, which would require leave of court to appeal. 123 Section 243(3) of the Constitution limits
the right to appeal from the National Industrial Court to the Court of Appeal as specified by an Act
of the National Assembly. Appeals can only be made with leave of the court, and are restricted to
fundamental rights outlined in Chapter IV of the Constitution and matters within the lower court’s
jurisdiction.

The recent Supreme Court rulings in Coca-Cola Nig. Ltd. & Ors v Mrs. Titilayo Akinsanya124 and
Skye Bank Plc v. Victor Anaemen Iwu 125 have settled all interpretations and conflicting decisions
pertaining to section 243 of the Constitution. The respondent in the Skye Bank Plc case was a
former employee of Afribank Nigeria Plc, which was subsequently acquired by Mainstreet Bank
Limited and then by Skye Bank Plc once again. On July 6, 2011, the respondent was fired due to
severe misconduct. He brought a lawsuit against the Bank in the National Industrial Court of
Lagos, alleging that he was wrongfully fired, that his right to a fair trial was violated, and that he
owed money for unpaid salaries, benefits, and other items such as contributions to the National
Housing Fund and pension funds.

The Bank’s preliminary objection to the trial court’s jurisdiction was dismissed. The respondent
in the Bank’s appeal at the Court of Appeal contested the application, arguing that the Court of
Appeal lacked jurisdiction to hear the appeal. The parties filed and adopted written addresses, and
a decision about jurisdiction was reserved. The appellant filed a motion to refer the case to the
Supreme Court while the decision was still pending. In this motion, the appellant sought an
opinion, among others, on whether the Court of Appeal’s jurisdiction to hear civil appeals from
the decisions of the National Industrial Court of Nigeria is restricted to matters pertaining to
fundamental rights alone.

123
S. Erugo, Introduction to Nigerian Labour Law (2nd edn, Princeton & Associates Publishing Co. Ltd., Lagos, 2019)
391-395.
124
(Unrep) SC. 542/2013 judgment delivered 30 June, 2017.
125
(2017) LPELR 42595(SC)
The Supreme Court analyzed the different viewpoints from two divisions of the Court of Appeal
regarding the constitutional issue of whether decisions of the National Industrial Court of Nigeria
could be appealed. The apex court examined the varying interpretations and contradictory
decisions of the Court of Appeal on section 243 of the Constitution, and concluded that there is no
constitutional provision that takes away the Court of Appeal’s exclusive authority to hear appeals
arising from the National Industrial Court’s decisions. The Supreme Court upheld the fact that
section 243(3) of the Constitution does not eliminate a party’s right to appeal a decision of the
National Industrial Court in civil matters, but rather mandates the party to seek and obtain the leave
of the Court of Appeal. The Court further stated that the Court of Appeal has exclusive jurisdiction
to hear and decide all appeals from the National Industrial Court, which should not be limited to
appeals related to Fundamental Human Rights connected to the jurisdiction of the Industrial Court
and criminal matters.126

In furtherance, it should be noted that in cases where the civil jurisdiction of the National Industrial
Court allows for appeals, the Court of Appeal is the final court to hear the case. 127 The Constitution
in section 243(4) states that:

“without prejudice to the provision of Section 254C (5) of this Act, the decision of the
Court of Appeal in respect of any appeal arising from any civil jurisdiction of the National
Industrial Court shall be final.”128

The wording of the subsection specifically does not allow appeals regarding criminal cases or
matters falling under the jurisdiction of the National Industrial Court. In the case of Coca-Cola
Nig. Ltd. & Ors v Mrs. Titilayo Akinsanya,129 the Supreme Court ruled that according to section
243(4), the Court of Appeal’s decision in civil cases from the National Industrial Court is final and
cannot be further appealed.

2.1.9 Industrial Democracy and Industrial Harmony in Industrial Relations

126
Ibid.
127
Erugo (n 73), Ibid.
128
Section 243(4), 1999 CFRN (as amended).
129
(2017) LPELR 42595(SC)
It has been observed that industrial conflicts have negatively impacted the industrial environment
in the country. 130 This situation sometimes arises from a lack of peaceful interactions among
workplace participants, creating conditions that hinder organizational success and productivity.
Issues such as job dissatisfaction, which leads to absenteeism, strikes, high turnover, work-to-rule
scenarios, and low productivity have also been identified. The challenges employers face therefore
include restoring employee satisfaction, commitment to their roles, enhancing productivity, and
fostering a cooperative work environment, especially amidst ongoing industrial crises, all without
compromising industrial peace. 131 This emphasizes the significance of industrial democracy and
industrial harmony in labour relations.

Industrial democracy refers to the idea that, much like political democracy, workers deserve a
substantial say in the decisions that influence their workplaces. 132 Every society requires leaders
and followers, but in a work setting, this dynamic is specifically between management and labour,
focusing on how power and authority are distributed. Industrial democracy has commonly been
recognized as synonymous with worker participation in management, representing a type of
labour-management relationship. Thus, in this context, industrial democracy emphasizes
collaboration in decision-making and action rather than distributing power, status, or
responsibilities equally. 133

It has been argued that workers can participate in management at all levels, with the distinction
being one of degree and type. At lower levels, participation may be more extensive, while at higher
levels, it may be less so. Five levels of worker participation has been identified, to wit; 134

(i) Informational participation: This refers to workers receiving information and expressing their
opinions on issues of general economic significance.

130
A. Sabo, M.M. Maishanu and S. Muhammad, “Industrial Relations Environment In Nigeria: Reviewing Conflict
Causes And Taxonomies Among Public Sector Employees,” European Journal of Human Resource Management
Studies (2018) 2(1), 74-86, 78. <http://www.oapub.org/soc> accessed September 3, 2024.
131
Ibid.
132
J. Fejoh, “Industrial Democracy as Panacea for Effective Labour-management Relations in Nigeria,” Gashua
Journal of Science and Humanities (2016) 2(2), 111-117, 114. <www.fugagjsh.com> accessed September 3, 2024.
133
J. Fejoh, “Industrial Democracy as Determinant of Job Satisfaction among Workers of Public Health Institutions
in Ogun State, Nigeria,” International Journal of Humanities and Social Science (2015) 5(10), 106-113, 109.
<www.ijhssnet.com> accessed September 3, 2024.
134
Fejoh (n 82), Ibid.
(ii) Consultative participation: At this level, workers are consulted on matters related to employee
welfare, such as safety and health, although management retains the final decision-making power
and employee input is advisory in nature.

(iii) Associative participation: This is an extension of consultative participation, where

management has a moral obligation to accept and implement the consensus decisions of
employees.

(iv) Administrative participation: At this level, workers play a larger role in executing managerial
functions. Decisions made by management are presented to employees, along with alternatives for
implementation, and employees are responsible for selecting the best option.

(v) Decisive participation: This is the highest level of worker participation, where decisions are
jointly made on issues related to production and employee welfare.

The essence of industrial democracy lies in the shared control between workers and management
within an organization.135 This necessitates that management relinquishes its exclusive decision-
making authority. It is important to clarify that industrial democracy does not imply that workers
are taking over the roles of management, as the degree of worker involvement is quantifiable. It
has been argued that any model of worker participation adopted in the workplace should ultimately
lead to improved efficiency, freedom, justice, equality, and engagement.

Some of the advantages of industrial democracy include: 136

(i) Enhancement of individual workers’ satisfaction and personal growth,

(ii) Provision of decision-making framework within workplaces,

(iii) Facilitation of improved industrial relations in the country,

(iv) Contribution to increased efficiency in work settings, among other benefits.

135
D.O. Abolade, “Impacts of Industrial Democracy on Organizational Performance (Case Study of Selected Private
and Public Sector Organizations in Lagos State, Nigeria),” Journal of Research in Social Sciences (2015) 3(2), 11-33,
13.
136
Fejoh (n 82), Ibid.115.
From this viewpoint, industrial democracy fosters respect and dignity for individuals, aligning with
the belief that there is inherent dignity in labour. This approach further strengthens solidarity
among workers, leading to industrial peace and higher productivity. Additionally, as democracy is
recognized as the optimal form of governance, industrial democracy emerges as the most effective
method for managing work organizations, ensuring that everyone, regardless of their status, has a
voice in decision-making processes. This inclusivity promotes a sense of belonging and trust in
management.

The Nigerian government has made strides in this area but still has room for improvement to
prevent the ongoing deregulation of wages and benefits for public workers, particularly concerning
the minimum wage, from escalating into strikes. Industrial democracy can facilitate collective
bargaining, leading to agreements that reflect the commitment of both labour and management. In
this framework, decisions are made collaboratively, emphasizing that democracy is a collective
endeavour. Thus, industrial democracy cannot be imposed unilaterally by management; it requires
a learning process that includes trial and error, acknowledging mistakes, and a willingness to adapt
for the collective good.

Industrial Harmony on the other hand arises from the concept of “Industrial Democracy.” It
represents a state of organizational stability where management and employees collaborate closely
and effectively to achieve their common goals. 137 This harmonious relationship reflects a mutual
understanding and agreement on working together for shared benefits and coexistence. 138
Industrial agreement illustrates a scenario in which employees and management cooperate
amicably to pursue the organization’s objectives, which are fundamental to their existence. These
objectives drive actions, and those actions lead to enhanced performance in achieving the desired
goals. Industrial harmony encompasses four key aspects of cooperation: duties, employment
policy, collective bargaining, communication and consultation. 139

137
N.P. Uzoamaka, O. Chinedu and A.R. Ifeoma, “Industrial Harmony: Antidote to Workplace Deviant Behaviour
among Lecturers in Nigeria,” Asian Journal of Economics, Business and Accounting (2022) 22(2), 31-39, 32. <DOI:
10.9734/AJEBA/2022/v22i230545> accessed September 3, 2024.
138
I.O. Osad and E.U. Osas, “Harmonious Industrial Relations as a panacea for ailing Enterprises in Nigeria,” Journal
of Asian Scientific Research (2013) 3(3), 229-246.
139
U.C. Onyeizugbe, V. Aghara, E.S. Olohi and P.C. Abaniwu, “Industrial Harmony and Employee Performance in
Food and Beverage Firms in Anambra State of Nigeria,” International Journal of Managerial Studies and Research
(2018) 6(6), 22-35.
Industrial harmony boosts labour productivity and enhances organizational success, leading to
economic growth and improved living standards for individuals through the assurance of quality
living conditions. It fosters a peaceful environment that encourages tolerance, dialogue, and
various methods for resolving industrial or labour disputes in Nigeria, including negotiation,
mediation, arbitration, conciliation, and court adjudication. This environment fosters high levels
of employee loyalty and satisfaction. Additionally, industrial harmony acts as a solution to reduce
conflicts and foster peace, which helps achieve organizational objectives. Similarly, collective
bargaining strengthens industrial harmony by involving both parties in the development and
implementation of strategies. 140

In this view, it goes without saying that the terms “Industrial Democracy” and “Industrial
Harmony” underscore the importance of workplace management, qualitative employment policies
and communications as well as inclusive labour system. These concepts are like a Siamese twin
which every labour environment needs to thrive in its relations with employees of labour and as a
way of avoiding unduly prolonged labour disputes.

2.2 Historical Background

2.2.1 Historical Evolution of Mechanisms for Settlement of Labour Disputes (ADR)

Nigeria has a longstanding history with Alternative Dispute Resolution (ADR), which has been a
part of its cultural fabric even before colonial times.141 In traditional Nigerian societies, disputes
were commonly resolved by seeking the counsel of elders and other esteemed community
members. Pre-colonial Nigeria was made up of various settlements, communities, families,
villages, hamlets, and prominent kingdoms and empires, including the Oyo and Borno empires
and Igbo communities. However, these kingdoms and communities were not without their
conflicts. Instead, they managed to address and resolve their disputes and challenges through
means other than litigation. Disputes were typically handled by referring them to elders or other
established bodies. 142

140
Uzomaka, Chinedu and Ifeoma (n 87), Ibid.
141
Nwazi (n 34), Ibid., 27.
142
Ibid.
It has been argued that public participation and mediation are not foreign concepts to Nigeria. In
fact, a comprehensive understanding of local knowledge systems, institutions, and social
organizations is crucial for supporting and enhancing sustainable practices as well as social and
technological change. Negotiation and mediation have always been essential components of
traditional African decision-making processes. Historically, the elders have played crucial roles,
such as managing public affairs, maintaining peace, acting as judges, and overseeing community
welfare.143

The British invasion of Nigeria brought about the establishment of English courts for resolving
disputes. Despite the introduction of these courts, the traditional methods of dispute resolution in
Nigeria continued to be used alongside the court system. Even today, individuals still settle cases
outside of the courts using the local system of dispute resolution.144

CHAPTER THREE

143
I.O. Igwe, K.O. Udude and O.C. Constance, “A Review of Continuous Relevance of the Traditional Methods of
Dispute Resolution Mechanism in Southeast of Nigeria,” Beijing Law Review (2020) 11, 34-42, 35.
<https://www.scirp.org/journal/blr> accessed September 3, 2024.
144
Ibid., 38.
 LEGAL AND INSTITUTIONAL FRAMEWORKS FOR SETTLEMENT OF LABOUR
DISPUTES IN NIGERIA

3.1 LEGAL FRAMEWORKS FOR SETTLEMENT OF LABOUR DISPUTES IN NIGERIA

3.1.1 Labour Act, 2004

This is the extant statute on labour and industrial matters in Nigeria. The Act is divided into four
(4) parts containing provisions on employment, recruitment for employment, employment of
special class of people and so on. This Act which is the primary legislation on labour matters in
Nigeria regulates labour disputes and settlement of labour disputes in Nigeria.

Under section 81 of the Act,145 where an employer or employee fails to meet their contractual
obligations or a dispute arises regarding the rights, liabilities, or any wrongdoing, ill-treatment, or
injury to a party in a contract, the aggrieved party can file a complaint in a court having
jurisdiction.146 The court can then do the following:

(a) Adjust and offset any claims between the complainant and respondent that arise from their
relationship, regardless of whether they are for wages, damages, or something else. The
court may order one party to pay the other the amount it finds owed.
(b) Order the performance of the relevant contract. If damages could be awarded for a breach
of contract, the court may require the breaching party to provide security for the
unperformed portion of the contract instead of awarding damages.
(c) If the party ordered to provide security fails to do so and the court determines that this is
not due to an inability to find it, the court may imprison the party for up to three months
until security is provided.
(d) Cancel the contract and set terms for the apportionment of wages or other sums due and
the payment of wages, damages, or other sums due.
(e) If the court has criminal jurisdiction and believes that an employer or employee has
committed an offense under the Act, the court may impose any sentence authorized by the

145
Labour Act, Cap L1, Laws of the Federation of Nigeria 2004.
146
Section 81, Labour Act, 2004.
 Act and within its criminal jurisdiction in addition to or instead of exercising any of the
powers listed in paragraphs (a) to (d).147

The court may accept any security method it deems appropriate in a particular case. A person may
provide security for the purposes of subsection (1)(b) by making a written or oral acknowledgment
(known as a recognizance) of the undertaking or condition and the sum in which they are bound.
This recognizance will be made in the same way as bail recognizances and will be subject to
forfeiture and enforcement in the same way. 148

Under section 83 and the related sections of the Act, the procedures in criminal cases apply to
complaints and any orders for the payment of money resulting from the complaints. However, the
court has the authority to order that civil procedure laws apply instead, if it deems it necessary for
the interests of justice. If the court lacks criminal jurisdiction, civil procedure laws will apply. 149
When the court orders a public authority to pay a sum of money as a result of a complaint, no
execution can be issued. Instead, the court will send a copy of the order to the relevant government
minister or public authority for payment to be made by the appropriate officer or department.150
During the hearing of the complaint, the respondent will not be forced to be in custody or treated
as under arrest, unless the court determines it necessary to secure their attendance. The respondent
can also testify at the hearing, but cannot be compelled to do so.151

Furthermore, where the court imposes a fine, requires a deposit to be made, or enforces payment
of a sum guaranteed by a recognizance, it can decide that the recovered amount should be used to
compensate an employer or worker for any harm caused as a result of the non-performance of the
relevant contract.152 If a worker lacks the means to get food while waiting for the complaint to be
resolved, the court can provide necessary food at the expense of the Federal Government. The cost
of the food supplied becomes a debt owed to the Federal Government by the complainant and can
be deducted from any funds received by the court on behalf of the complainant. 153

147
Section 82(1), Ibid.
148
Section 82(2), Ibid.
149
Section 83(1), Ibid.
150
Section 83(2), Ibid.
151
Section 83(3) & (4), Ibid.
152
Section 84(1), Ibid.
153
Section 84(2) & (3), Ibid.
In addition, the court process for ensuring the attendance of the respondent and witnesses will be
covered by the Federal Government at no cost to any party involved. 154 Upon final determination
of the complaint, the court has the authority to order either party to pay costs as deemed
appropriate.155 If the court deems the complaint to be vexatious or frivolous during the hearing,
the complainant may be required to pay a fine, cover the process and witness costs, and could face
imprisonment for up to one month if the fine and costs are not paid. 156

3.1.2 Trade Disputes Act, 2004

The Trade Disputes Act is an essential law that outlines the legal framework for handling trade
disputes in Nigeria. It defines the rights and responsibilities of employers, employees, and trade
unions, and specifies the processes for resolving conflicts. Thus, according to section 4 of the
Act,157 if a dispute arises, the parties involved are expected to first try to resolve it through any
agreed means outside of the statute, such as agreements between employer and worker
organizations. If this attempt fails or if there is no agreed means in place, the parties must within
seven days of such failure and where there is no such failure, within seven days of the date of the
first apprehension of the dispute meet with a mutually agreed-upon mediator for the purpose of
settling the dispute amicably. 158

Despite the above provisions, if the Minister anticipates a trade dispute, he can notify the parties
involved in writing about his concerns and the actions he plans to take to resolve the conflict. The
actions that the Minister can take may involve appointing a conciliator, referring the dispute to the
Industrial Arbitration Panel, or referring the dispute to a board of inquiry. 159 If a mediator is
appointed, and the dispute is not resolved within seven days, either party must inform the Minister
within three days of the end of the seven days. The report should in writing detail the issues at
hand such as the points on which the parties disagree and outline the efforts made to reach a
resolution.160

154
Section 85(1), Ibid.
155
Section 85(2), Ibid.
156
Section 85(3), Ibid.
157
Trade Disputes Act, Cap T8, Laws of the Federation of Nigeria 2004.
158
Section 4, Trade Disputes Act, 2004.
159
Section 5, Ibid.
160
Section 6, Ibid.
If the Minister is not convinced that sections 4 and 6 of the Act have been properly followed, he
can issue a written notice to the parties outlining the necessary actions and the timeframe for
completing them. 161 If the dispute persists after the specified period or 14 days have passed without
resolution, and the Minister determines that the required actions have been carried out or one party
is unwilling to comply, the Minister may exercise his authority to appoint a conciliator, to refer
the dispute to arbitration tribunal in the event of failure of conciliation, to refer the dispute to the
National Industrial Court directly and to appoint a board of inquiry, as deemed suitable. 162

The Minister can appoint a suitable and fit individual to serve as a conciliator to help resolve
disputes pursuant to section 7 of the Act. The conciliator will investigate the reasons behind the
dispute and work with the involved parties to try and reach a resolution through negotiations. 163 If
a settlement is achieved within seven days, the conciliator must inform the Minister and provide a
memorandum of the settlement terms signed by the parties’ representatives. Once the
memorandum is signed, the terms outlined within it will be legally binding on the employers and
workers involved. 164

If anyone violates the terms of a settlement agreement signed according to section 8(3) of the Act,
he will be committing an offense and could face a fine of N200 if he is a worker or trade union,
and a fine of N2,000 if he is an employer or represent employers. If a resolution to the dispute is
not reached within seven days of the conciliator’s appointment, or if he believes a settlement
cannot be achieved through negotiation, he must promptly inform the Minister. 165

When the Minister receives a report under section 6 of the Act, the Minister must refer the dispute
to the Industrial Arbitration Panel for resolution within a 14-day period. This Panel consists of a
chairman, a vice-chairman, and at least ten other members, all appointed by the Minister. Of these
ten members, two must be nominated by employer organizations and two by worker
organizations. 166 The chairman of the Panel serves as the arbitration tribunal for dispute resolution,

161
Section 7(1), Ibid.
162
Section 7(2), Ibid.
163
Section 8(1) & (2), Ibid.
164
Section 8(3), Ibid.
165
Section 8(4) & (5), Ibid.
166
Section 9(1) & (2), Ibid.
deciding which of paragraphs (a), (b), or (c) of subsection 9(4) of the Act is most appropriate based
on the subject matter of the dispute and any previous attempts at resolution under the Act. 167

Pursuant to subsection 9(4) of the Act,168 the arbitration tribunal may consist of a sole arbitrator
chosen by the chairman, a single arbitrator assisted by assessors, or one or more arbitrators each
nominated by either employers or workers, with the chairman or vice-chairman serving as
presiding officer. Assessors for a single arbitrator with assessors are appointed by the chairman,
with one or more coming from a panel of employer representatives and an equal number from a
panel of worker representatives, as established by section 44 of the Act. If no nomination is made
within seven days of the chairman’s request, the chairman may appoint anyone he deems fit. 169

The award of a single arbitrator with assessors is made and issued solely by the arbitrator, while a
majority decision is required in cases where multiple arbitrators are unable to agree. “Chairman”
as used refers to the chairman of the Industrial Arbitration Panel with the vice-chairman authorized
to exercise the chairman’s functions in his absence.170

An arbitration tribunal established under section 9 of the Act is expected to issue its decision within
21 days of being constituted, or the Minister may allow a longer period in special cases. The
tribunal must also immediately send a copy of its decision to the Minister, who will then inform
the parties involved without disclosing the decision. Upon receiving the decision, the Minister will
notify the parties or their representatives and publish it as he sees fit. The notice will include the
details of the decision, the deadline for objecting to it, and a confirmation by the Minister if no
objections are made within the specified timeframe. 171

In the event that a trade dispute arises or is apprehended, the Minister may equally order an
investigation into the circumstances and causes of the dispute. If he deems it appropriate, he may
also refer any matter that seems relevant or connected to the dispute to a board of inquiry that the
Minister has appointed specifically for that purpose. The board will investigate the matter that the
Minister has referred to it and provide a report to the Minister. 172

167
Section 9(3), Ibid.
168
Trade Disputes Act, Cap T8, Laws of the Federation of Nigeria 2004.
169
Section 9(5), Trade Disputes Act, 2004.
170
Section 9(6) & (7), Ibid.
171
Section 13, Ibid.
172
Section 33 (1), Ibid.
The Minister may refer any other issue pertaining to the working conditions in Nigeria to a board
of inquiry that the Minister has constituted specifically for that purpose. The board will investigate
the issue raised and provide a report to the Minister. A board of inquiry established may consist of
one person only, or it may consist of a chairman and any additional members the Minister deems
appropriate. Quite notably, a board of inquiry with two or more members may proceed even in the
event of a vacancy in the membership. 173

By virtue of section 14 of the Act,174 the Minister is expected to immediately refer the dispute to
the National Industrial Court created by the Act if notice of objection to the award of an arbitration
tribunal appointed is given to the Minister within the time frame and in the manner specified in
the notice under the Act. The award of the National Industrial Court is enforceable against the
employers and employees to whom it relates as of the award’s date, or as may be indicated in the
order or in cases where, as of the date of the appeal’s decision, there is an appeal concerning basic
rights as stated in Chapter IV of the Federal Republic of Nigeria’s Constitution. 175 If an individual
or body corporate is found guilty of violating an award of a tribunal that the Minister has
confirmed, he will be guilty of an offense and face fines of N2,000 or, in the case of an individual,
to a fine of N200 or imprisonment for a term of six months. 176

3.1.3 Arbitration and Conciliation Act, 1998

The provisions of the Arbitration and Conciliation Act, 1998,177 are based on the idea of party
autonomy and reflect the adaptable character of arbitral proceedings. The majority of the
arbitrator’s authority is default authority; that is, unless both parties agree differently, the tribunal
has authority. Arbitration and Conciliation Act states the purpose of arbitration as the resolution
of disputes by an impartial tribunal and reiterates the fundamental principles of arbitral
proceedings, that is, fair treatment of the parties and allowing each party full chance of presenting
its case. 178 Except in the few situations expressly allowed for by the Act, section 34 forbids the
court from becoming involved in arbitral proceedings.

173
Section 33 (2-4), Ibid.
174
Trade Disputes Act, Cap T8, Laws of the Federation of Nigeria 2004.
175
Section 14(2), Trade Disputes Act, 2004.
176
Section 14(4), Ibid.
177
Cap A18, Laws of the Federation of Nigeria 2004.
178
Section 14, Arbitration and Conciliation Act, 1998.
All arbitration agreements are required to be in written form. It can be in the form of a document
that is signed by both parties; or a series of letters, telexes, telegrams, or other communication
methods that record the arbitration agreement; or a back-and-forth exchange of claims and
defenses where one party asserts the existence of an arbitration agreement and the other party
contests it.179 Pursuant to subsection 1(2) of the Arbitration and Conciliation Act, any mention in
a contract of a document that contains an arbitration clause qualifies as an arbitration agreement if
the contract is written and the reference effectively incorporates that clause into the contract.

In addition, the parties involved in an arbitration agreement have the authority to decide on the
number of arbitrators to be appointed. If they do not make such a decision, the default number of
arbitrators will automatically apply. 180 The parties can also outline the procedure for appointing
an arbitrator in the arbitration agreement.181 If no procedure is outlined, for arbitrations involving
three arbitrators, each party will select one, and the two appointed will choose the third. If a party
does not appoint an arbitrator within thirty days of a request from the other party, or if the two
appointed arbitrators cannot agree on the third within thirty days, the court will make the
appointment upon request from any party to the arbitration agreement. For arbitrations involving
one arbitrator on the other hand, if the parties cannot agree on one, any party may request the court
to make the appointment within thirty days of the disagreement.182

Under the Act,183 it is worthy of note that an arbitrator can be challenged if there are circumstances
that create reasonable doubts about his objectivity or independence; or if he lacks the qualifications
that the parties had previously agreed upon.184 The parties involved in the dispute may establish
the process for challenging an arbitrator. If no process is established, a party intending to challenge
an arbitrator must submit a written statement outlining the reasons for the challenge to the arbitral
tribunal within fifteen days of becoming aware of the tribunal’s composition or any relevant
circumstances mentioned in the Act.185

179
Section 1(1), Ibid.
180
Section 6, Ibid.
181
Section 7(1), Ibid.
182
Section 7(2), Ibid.
183
Arbitration and Conciliation Act Cap A18, Laws of the Federation of Nigeria 2004.
184
Section 8(3), Arbitration and Conciliation Act, I998.
185
Section 9, Ibid.
An arbitral tribunal has the authority to determine issues regarding its own jurisdiction as well as
any challenges concerning the existence or validity of an arbitration agreement.186 Also, unless the
parties agree otherwise, the arbitral tribunal may, either before or during arbitration proceedings,
at the request of a party, instruct any party to implement interim protective measures deemed
necessary regarding the dispute and require any party to furnish adequate security related to any
measures enacted under the Act.187

Furthermore, unless the parties agree otherwise, the place of the arbitration proceedings will be
decided by the arbitral tribunal, taking into account the specifics of the case and the convenience
of the parties involved. Regardless of this, unless the parties agree differently, the arbitral tribunal
may convene at any location it finds suitable for member consultations, witness hearings, expert
testimonies, or the review of documents, goods, or other property.188

Additionally, the arbitration process for any given dispute will start on the date the request to
arbitrate is received by the opposing party. 189 The parties can agree on the language or languages
for the arbitration proceedings. If they do not, the arbitral tribunal will select the language(s) based
on the relevant circumstances of the case. And any language(s) chosen by the parties or determined
by the tribunal will be regarded as the language(s) to be used for all written submissions, hearings,
awards, decisions, or other communications throughout the arbitration, unless the parties or
tribunal express a different intention. 190

Except where the parties have a different agreement, the arbitral tribunal will determine whether
the proceedings will be conducted through oral hearings for presenting evidence or making
arguments; or based on documents or other materials; or by combining both oral hearings and
documents. The tribunal is also expected to provide the parties with adequate advance notice of
any hearing and of any meetings for inspecting documents, goods, or other property.191

Clearly, the court or judge has the authority to issue a subpoena ad testificandum or a subpoena
duces tecum to ensure a witness attends any arbitral tribunal, regardless of their location within

186
Section 12, Ibid.
187
Section 13, Ibid.
188
Section 16, Ibid.
189
Section 17, Ibid.
190
Section 18(1) & (2), Ibid.
191
Section 20(1) & (2), Ibid.
Nigeria. The court or judge can also issue a writ of habeas corpus ad testificandum to bring a
prisoner before any arbitral tribunal for examination. 192

The arbitral tribunal has the power to issue an award and any award issued by the arbitral tribunal
must be in writing and signed by the arbitrator or arbitrators. If there is more than one arbitrator,
the signatures of a majority of the tribunal members will be sufficient.193 The arbitral tribunal must
however include the following information in the award:

(a) the reasons for its decision, unless the parties have agreed otherwise or it is an award based on
agreed terms under the Act;

(b) the date it was issued; and

(c) the location of the arbitration which will be considered the place where the award was made.
Additionally, a signed copy of the award must be delivered to each party. 194

A party dissatisfied with an arbitral award may, within three months following either of the
issuance date of the award; or from the date when the request for an additional award is resolved
by the arbitration panel, file an application to the court for the award to be annulled. The court has
the authority to annul an arbitral award if the applicant can demonstrate that the award addresses
issues that exceed the scope of the arbitration agreement. However, if the parts addressing the
submitted matters can be separated from those that exceed that scope, only the portion relating to
unsubmitted issues may be annulled. 195

Section 37 of the Arbitration and Conciliation Act provides for resolution of disputes through the
process of conciliation. It states thus:

“Notwithstanding the other provisions of this Act, the parties to any agreement may pursue
an amicable resolution of any dispute related to the agreement through conciliation as
outlined in this part of the Act.”196

192
Section 23(1) & (2), Ibid.
193
Section 26(1) & (2), Ibid.
194
Section 26(3) & (4), Ibid.
195
Section 29, Ibid.
196
Section 37, Ibid.
Thus, a party wishing to begin conciliation must provide a written request for conciliation to the
other party and any request made is expected to include a brief outline of the subject of the
dispute.197 Pursuant to section 39 of the Act, the conciliation process starts when the request for
conciliation is accepted by the party involved in the dispute. Once the conciliation request is
accepted, the disputing parties will have to appoint a conciliation body composed of either one or
three conciliators. Where there is one conciliator, both parties will have to select this individual
together. And in the case of three conciliators, each party will appoint one conciliator, and the third
will be selected jointly by both parties.198

More so, the parties may attend the conciliation sessions in person and can have legal
representation. 199 After reviewing the case and hearing from the parties, if deemed necessary, the
conciliation body will propose terms for settlement to the parties. If the parties accept the proposed
terms, the conciliation body will prepare and sign a settlement record. If the parties do not agree
to the proposed terms, they may refer the dispute to arbitration in accordance with any existing
agreement or pursue any appropriate legal action in court.200

3.1.4 Arbitration and Mediation Act, 2023

The Arbitration and Mediation Act, 2023 regulates the arbitration process in Nigeria, a commonly
utilized approach for resolving trade disputes. It repealed the Arbitration and Conciliation Act,
1998. This Act establishes the legal guidelines for carrying out arbitration proceedings, selecting
arbitrators, and enforcing arbitral awards. It is designed to conform with international best
practices, ensuring that arbitration continues to be an effective and dependable method for trade
dispute resolution in Nigeria.

Pursuant to subsection 1(2) of the Act,201 parties in a dispute have the freedom to choose how they
want to resolve their conflicts, as long as it promotes peace and protects public interest. An
arbitration agreement between parties is legally binding and can only be replaced by another
method of dispute resolution if both parties agree or if the agreement is invalidated. Everyone

197
Section 38, Ibid.
198
Section 40, Ibid.
199
Section 41(2), Ibid.
200
Section 42, Ibid.
201
Arbitration and Mediation Act, 2023.
involved in the arbitration process, including parties, arbitrators, arbitral institutions, appointing
authorities, and the court, must ensure that the process is conducted properly and efficiently. 202

An arbitration agreement can be a clause in a contract or a separate agreement and must be

documented in writing. This can be in any form, including electronic communication, as long as
the information is accessible for future reference. Making reference to a document with an
arbitration clause in a contract or separate agreement also counts as a written arbitration agreement.
Once in place, an arbitration agreement is usually binding and cannot be revoked, unless agreed
upon by the parties. Additionally, the agreement remains valid even in the case of a party’s death
or changes to the agreement. 203 Unless otherwise agreed, arbitral proceedings start when the
respondent receives a written request.204

Like in judicial proceedings, statutes of limitation apply also to arbitral proceedings. The time
between the start of arbitration and any court order relating to an award is excluded from the
limitation period. Any provision requiring an award as a condition precedent for legal action under
an arbitration agreement is ignored. When calculating the start time for enforcing an arbitral award,
the time period from when the arbitration began to when the award was given will not be
counted.205

The parties can choose which language they want to use in the arbitration process, and if there is
not such agreement, English language will be used. Any language chosen by the parties or decided
by the tribunal will be used in all written and verbal communication during the arbitration, unless
stated otherwise. The tribunal can also require translations of documentary evidence into the
agreed or determined languages. 206

The arbitral tribunal, unless otherwise agreed upon by the parties, possesses the authority to issue
a declaration on any matter in dispute and to demand the payment of a monetary sum in any
currency sought by a party. Furthermore, as the court, it has the power to order a party to perform
or abstain from an action. It also has the power to order specific performance of a contract

202
Section 1(3) & (4), Arbitration and Mediation Act, 2023.
203
Section 2, 3, & 4, Ibid.
204
Section 33, Ibid.
205
Section 34, Ibid.
206
Section 35, Ibid.
(excluding contracts related to land), and also the rectification, rescission, or annulment of a deed
or other instrument.207

In the absence of a contrary agreement by the parties, the arbitral tribunal is responsible for
determining the conduct of the arbitral proceedings through oral hearings for the presentation of
evidence or arguments, based on documents and other materials, or through a combination of both
methods, and, unless the parties have agreed that no hearing be held, the arbitral tribunal must hold
such hearings if requested by any party.208 The arbitral tribunal must provide adequate notice to
the parties of any hearing or meeting for the purpose of inspecting documents, goods, or other
property. Unless otherwise agreed by the parties, any statement, document, or information
provided to the arbitral tribunal or other authority by one party must be shared with the other
party.209

Any expert report or evidence relied upon by the arbitral tribunal in making its decision must also
be shared with the parties. Unless the parties agree otherwise, the arbitral tribunal may require a
party to an arbitration agreement or a witness testifying before the arbitral tribunal to be examined
under oath or affirmation, and may administer oaths or affirmations for the purpose of the
examination. 210 The parties may agree also to consolidate arbitral proceedings with other
proceedings, including those involving different parties, provided that such parties agree, or to
hold concurrent hearings on agreed terms. However, the arbitral tribunal cannot order the
consolidation of proceedings or concurrent hearings unless the parties agree to such an order. 211
More so, the arbitral tribunal can allow another party to be added to the arbitration if it appears
that party is bound by the arbitration agreement. The tribunal’s decision does not affect its
jurisdiction.212

Upon request from a party, a court or judge can issue a subpoena ad testificandum or a subpoena
duces tecum to compel a witness to appear before an arbitral tribunal in Nigeria. The court or a
judge in chambers can also request a writ of habeas corpus ad testificandum to bring a prisoner

207
Section 37, Ibid.
208
Section 38(1), Ibid.
209
Section 38(2) & (3), Ibid.
210
Section 38(4) & (5), Ibid.
211
Section 39, Ibid.
212
Section 40, Ibid.
for questioning in front of any arbitral tribunal. 213 If the parties settle the dispute during the
arbitration proceedings, the tribunal must terminate the proceedings. Upon the parties’ request and
agreement, the tribunal can also document the settlement in a written arbitral award on agreed
terms. 214

The award given must be in writing and signed by the arbitrator(s). In an arbitration with multiple
arbitrators, a majority of signatures is sufficient, as long as the reason for any missing signature is
stated. The award must include reasons for the decision, the date it was made, and the seat of the
arbitration as agreed or determined under the Act. After the award is made, a signed copy must be
delivered to each party.215

With respect to mediation under the Act, where a special law requires the use of mediation before
legal proceedings or if the parties agree to attempt mediation before going to court, one party must
formally suggest entering into a mediation agreement to the other party.216 If the invitation to
mediate is not accepted within 30 days or the specified time frame, it can be considered as declined.
Mediation can be proposed at any time, even if legal or arbitration proceedings are already in
progress or after they have started.217 It is noteworthy that in any legal proceedings, the body in
charge can suggest to the involved parties to consider resolving their conflict through mediation,
if it believes that mediation could be an effective solution. The mediation process officially begins
on the date the mediation agreement is signed, whether it is drafted after the dispute arises, ordered
by a court, or initiated by the mediator.218

The limitation period for a claim subject to mediation is paused when the mediation begins, and it
resumes running if the mediation ends without an agreement.219 Parties can choose one or more
mediators and seek help from a mediation provider to appoint a suitable mediator who is
independent and impartial, possibly from a different nationality than the parties involved. 220 Where
a person is asked to be a mediator, he must reveal any information that could cause doubts about

213
Section 43, Ibid.
214
Section 45, Ibid.
215
Section 47, Ibid.
216
Section 70(1), Ibid.
217
Section 70(2) & (3), Ibid.
218
Section 70(4) & (5), Ibid.
219
Section 71(1) & (2), Ibid.
220
Section 72, Ibid.
his neutrality or independence. The mediator must inform the parties of any such circumstances
promptly, unless the parties already know about them. The parties can then decide whether or not
to allow the mediator to continue based on this information. 221

The parties can also agree on the rules and conduct of the mediation, and they must participate in
good faith. If there is no agreement on how the mediation should be carried out, the mediator can
choose the method they believe is suitable, considering the circumstances of the case and any
preferences the parties may have. 222 The mediator must ensure fair treatment of all parties and
uphold equal obligations towards them. Also, the mediator is expected to encourage
communication between the parties and involve them in the mediation process in a fair and suitable
way. 223

The parties and the mediator can decide to conduct mediation sessions using electronic methods
like video conferences, ensuring the parties’ identities are authenticated and following mediation
principles. The mediator can suggest settlement proposals with the parties’ agreement but cannot
enforce them, basing proposals on the information shared during mediation. Mediators may
receive fees and expenses for their services unless agreed upon otherwise, with the costs shared
equally by the parties unless stated otherwise. 224

A mediator has the flexibility to interact with the parties collectively or individually as needed. If
a party shares information with the mediator, it can be shared with the other party involved in the
mediation, unless the information was explicitly marked as confidential by the sharing party.225
Unless the parties agree otherwise, all information pertaining to the mediation proceedings will be
kept confidential, with the exception of the following situations:

(a) where disclosure is required by law;

(b) where disclosure is required to carry out or enforce a settlement agreement;

221
Section 72(5) & (6), Ibid.
222
Section 73(1) & (2), Ibid.
223
Section 73(3) & (4), Ibid.
224
Section 73 (5-7), Ibid.
225
Section 75, Ibid.
(c) where disclosure is required to prevent or reveal the commission of a crime (including an
attempt or conspiracy to commit a crime), the concealment of a crime, or a threat to a party; or
where disclosure is required to protect public order, but only in the circumstances and within the
bounds prescribed by law. 226

Pursuant to the provision of section 78 of the Arbitration and Mediation Act, 2023, mediation
proceedings can be terminated in five different ways which include by the settlement agreement
concluded on by the parties, a mediator’s declaration, parties declaration, mediation providers’
declaration and a party’s declaration to the other party or parties and the mediator. The section
provides in the following manner:

“The mediation proceedings are terminated by –

(a) The conclusion of a settlement agreement by the parties, on the date of the agreement;
(b) A declaration of the mediator, to the effect that further efforts at mediation are no
longer justified, on the date of the declaration;
(c) a declaration of the parties addressed to the mediator to the effect that the mediation
proceedings are terminated, on the date of the declaration;
(d) A declaration of the mediation provider administering the mediation, if any, on the date
of the declaration; or
(e) a declaration of a party to the other party or parties and the mediator, if appointed, to
the effect that the mediation proceedings are terminated, on the date of the
declaration.”227

In the event that parties reach a settlement agreement resolving a dispute, the mediator will involve
in the preparation and drafting of the settlement agreement, if agreed upon by the parties. The
settlement agreement resulting from the mediation is therefore binding on the parties and
enforceable in Court as a contract, consent judgment, or consent award. 228 Worthy of note also is
that mediators and mediation providers are not liable for any act done or omitted in the discharge
or purported discharge of their functions under the Act except for those acts shown to be done in
bad faith. 229

3.1.5 National Industrial Court Act, 2006

226
Section 76, Ibid.
227
Section 78, Ibid.
228
Section 82(1) & (2), Ibid.
229
Section 81, Ibid.
The National Industrial Court (NIC) Act was established on June 14, 2006, after receiving approval
from the former President of Nigeria, Chief Olusegun Obasanjo. This Act creates the National
Industrial Court as a superior court of record, granting it jurisdiction over labour and industrial
relations issues. The Act aims to elevate the role of the National Industrial Court in resolving
labour disputes and separates it from the Trade Dispute Act (TDA) by providing it with its own
distinct legal framework. This change addresses several shortcomings that were present during the
Trade Disputes Act period.230

Additionally, the appointment process for the President and Judges of the Court has been refined
to align with the procedures in the Federal High Court and the High Court of the Federal Capital
Territory, with the National Judicial Commission serving as the recommending body. The
provisions laid out in the 2006 National Industrial Court Act ensure that the same principles
regarding discipline, tenure, salaries, allowances, pension rights, status, and powers that apply in
High Courts also extend to the National Industrial Court.231

Furthermore, the court is no longer restricted by issues related to its sessions. Before the
introduction of the Act, the President of the Court was required to oversee all court sittings. Now,
any qualified Judge who is a legal practitioner can chair the court sessions. 232 Under the
framework, previous rulings that stated the National Industrial Court could not issue injunctive
and declaratory orders are no longer relevant, as outlined in sections 16-19 of the National
Industrial Court Act. With respect to labour disputes, disputants also have the right to apply to the
National Industrial Court directly by way of appeal as of right against the decisions of an arbitral
tribunal in trade dispute matters.233

3.1.6 Federal Competition and Consumer Protection Act (FCCPA), 2018

The Federal Competition and Consumer Protection Act, 2018 plays a crucial role in resolving trade
disputes by promoting fair competition, protecting consumers, and ensuring market efficiency in
Nigeria. Enacted in 2019, the FCCPA establishes a legal framework to address various issues

230
U.I. Iyam and D. Ugwu, “Overhauling the National Industrial Court Act: A Pathway to Effective Labour Dispute
Settlement in Nigeria,” Global Journal of Social Sciences (2010) 9(1), 63-66, 64. <www.globaljournalseries.com;>
accessed September 6, 2024.
231
Section 1-5 and 16-19, National Industrial Court Act, 2006.
232
Section 21(4), Ibid.
233
Section 7(4), Ibid.
related to trade disputes, including anti-competitive practices, consumer rights violations, and
unfair trade practices. The role of the FCCPA in resolving trade disputes contributes to fostering
a competitive and transparent business environment, promoting economic growth and
safeguarding consumer welfare in Nigeria.

The Federal Competition and Consumer Protection Act, 2018 established the Competition and
Consumer Protection Tribunal regarded as the Tribunal which adjudicates over prohibited
conducts under the Act. It keeps records of its proceedings and exercise jurisdiction throughout
the Federation. 234 The tribunal is made up of a Chairman (who is a legal practitioner with not less
than 10 years post-call and cognate experience in the field of competition, consumer protection or
commercial and industrial law) and six other members (with not less than 10 years professional
experience in one or more of the fields of competition and consumer protection law, commerce
and industry, public affairs, economics, finance or business management). The Chairman is usually
appointed by the President and such appointment is subject to the Senate’s confirmation. 235

In line with the provisions of section 47 of the Act, in the case of dispute, the tribunal is empowered
to entertain appeals from or review any decision of the Federal Competition and Consumer
Protection Commission (FCCPC) with respect to any matter under the Act. The power of the
tribunal also extends to the making of such orders as appropriate and such as are incidental to the
execution of its functions.236

Furthermore, in accordance with section 50 of the Act, the tribunal is authorized to make rules and
regulations to regulate its procedures in the case of any dispute or matter. The tribunal has the
power to summon and enforce the attendance of any person. It could also call for and examine a
person or a witness before it under oath. The tribunal is empowered to discover and ensure the
production of documents and to carry out such act as is necessary for the issuance of a final and
reasoned decision on the merit of the dispute or matter before it. 237

234
Section 39, Federal Competition and Consumer Protection Act, 2018.
235
Section 40, Ibid.
236
Section 47, Ibid.
237
Section 50(2), Ibid.
In addition, the tribunal also wields the power of sanction as it can impose administrative penalties
238
for misconduct, contravention or failure of compliance with an interim order of the tribunal. In
determining which penalty to mete out to a party, the tribunal considers such factors as:

(i) the nature, duration, gravity and extent of the contravention;

(ii) any loss or damage suffered as a result of the contravention;
(iii) the behaviour of the party in default;
(iv) the circumstances of the market in which the contravention took place;
(v) the level of profit derived from the contravention;
(vi) the degree of cooperation of the defaulting party with the Commission and the Tribunal,
among others.239

The tribunal is expected to provide the parties to the proceedings before it reasonable access to the
records of its proceedings except those confidential sets of information which are required to be
protected. This access equally extends to other members of the public other than the disputing
parties. 240 The order, award, ruling or judgment of the tribunal has a binding effect on the parties
before the tribunal and is required to be registered with the Federal High Court for the purpose of
enforcement.241

A party dissatisfied with the ruling, judgment or award of the tribunal has the right to make appeal
to the Court of Appeal within 30 days of the date on which the ruling, judgment or award was
made having given notice to the Registrar in writing.242 Notably, with respect to representation
under section 56 of the Act, parties to the proceedings before the tribunal may choose either to
appear in person or allow one or more legal practitioners to represent them before the tribunal. 243

3.1.7 Rules of Professional Conduct for Legal Practitioners 2007

The rules expressly required a lawyer to always exercise due diligence by disclosing to his clients
that Alternative Dispute Resolution (ADR) applies to matters pertaining to work or labour prior to

238
Section 51(1), Ibid.
239
Section 51(3), Ibid.
240
Section 53, Ibid.
241
Section 54, Ibid.
242
Section 55, Ibid.
243
Section 56, Ibid.
initiating or pursuing legal action on behalf of the client.244 This implies that legal practitioners
have a legal obligation to inform their clients about the necessity of using Alternative Dispute
Resolution (ADR) procedures to resolve labour issues.

In order to ensure that due diligence is done, the legal departments of employers involved in issues
with their employees or workers’ unions must take caution and encourage their clients to use the
Alternative Dispute Resolution (ADR) procedure. This also extends to legal representation of
employees, workers’ unions, or other similar organizations. 245

3.2 INSTITUTIONAL FRAMEWORKS FOR SETTLEMENT OF LABOUR DISPUTES IN

NIGERIA

3.2.1 Trade Unions and Employers’ Association

The primary aim of labour unions is to regulate the employment terms and conditions for workers
while presenting a unified and strong front during collective bargaining. Essentially, trade unions
are dedicated to advocating for the interests of all their members regarding employment conditions
in industrial environments.246 Additionally, they work to manage relationships between members
(workers) and employers, advocate for improved working conditions on behalf of their members,
and assist in resolving industrial grievances. By championing their members’ interests, trade
unions strive to enhance workplace conditions and ensure job security, while also safeguarding
members from cruel, unjust, and unfair treatment by management. 247 In summary, the key
objectives of trade unions encompass negotiation, representation, personnel policies, employee
relations, member welfare, and protection. 248

Labour unions aim to negotiate on behalf of their members through a process known as collective
bargaining. They utilize this approach to address work rules, grievance procedures, health and

244
Rule 15(3)(d), RPC 2007.
245
O.H. Ogworoka, “Labour Dispute Resolution in Nigeria,” International Journal of Innovative Legal & Political
Studies (2022) 10(2), 38-53, 51.
246
U.N. Okpalibekwe, R.U. Onyekwelu and E.E. Dike, “Collective Bargaining and Organizational Performance; A
Study of the Nigeria Union of Local Government Employees of Idemili North Local Government Council, Anambra
State (2007 -2012)” Public Policy and Administration Research (2015) 5(4), 53-68, 53.
247
Ibid., 57.
248
Onyebuchi, “The Roles of Labour Union In Nigeria Industrial Harmony And Development” International Journal
of Sustainable Development & World Policy (2019) 8(1), 10-20, 12. <DOI: 10.18488/journal.26.2019.81.10.20>
accessed September 9, 2024.
safety policies, promotions, retirement, and other workplace matters. Individual employees often
struggle to negotiate all aspects of their work contracts with employers. Consequently, unions
leverage the idea that there is “strength in numbers.”249

One of the primary goals of labour unions is to represent their members, especially during
disciplinary or grievance hearings. In these instances, a union representative advocates for the
employee in meetings with management. Consequently, unions act as a voice for workers in
employer-related matters. This goal is closely connected to maintaining positive employee-
employer relations, which is crucial for achieving the objectives of both sides. 250 A peaceful and
cooperative relationship can be fostered when unions work toward these aims.

For instance, when disputes occur between workers and management, unions attempt to resolve
these issues through negotiations to foster a harmonious environment that enhances productivity.
Conflict and disharmony make it challenging to attain both organizational goals and the objectives
of individual workers.251 Additionally, labour unions aim to promote the welfare of their members,
serving as both guides and advisors on work-related issues. They offer legal advice and financial
assistance when needed, striving to ensure that the employment conditions for their members are
fair and equitable to enhance their overall well-being.252

Furthermore, trade unions play a vital role in fostering peace and harmony within the workplace. 253
When decisions are made collectively by workers and management, they tend to gain the respect
and compliance of all involved, making it difficult for employers to disregard these agreements.
Accordingly, labour unions can indirectly catalyze a collaborative work environment, especially
through ongoing negotiations with employers regarding employee working conditions, which
helps prevent conflicts. This process fosters self-respect and confidence among union members
while ensuring that all parties adhere to their commitments.254 In Nigeria, organizations like the
Nigerian Labour Congress and PENGASSAN effectively fulfill this function. By promoting

249
Ibid., 13.
250
N.O. Emma and Collins, “Labour Unionism and Its Effects on Organizational Productivity: A Case Study of Jos
International Breweries (JIB) PLC, Nigeria,” African Research Review (2013) 7(4), 36-48, 38.
<http://dx.doi.org/10.4314/afrrev.7i4.3> accessed September 9, 2024.
251
Ibid., 40.
252
Onyebuchi (n 104), Ibid., 13.
253
Okpalibekwe, Onyekwelu and Dike (n 102), Ibid.
254
Ibid.
mutual understanding between employers and employees, labour unions contribute to a
cooperative and supportive work environment, which in turn enhances both organizational and
individual productivity, while also maintaining stability, growth, and effective leadership. 255

Another goal of labour unions is to promote effective personnel policies. Unions strive to establish
strong personnel practices for employees in the workplace and may contest management when it
comes to inadequate or inappropriate policies regarding recruitment, selection, training,
promotion, health and safety, retirement, and bereavement. Typically, unions provide guidance to
personnel managers based on industry best practices through their representatives. 256

It has been noted that the primary aim of labour unions is to secure improved working conditions
and employment for their members. 257 To fulfill these goals, union leaders are expected to be
proactive, well-versed in the country’s labour laws, and possess the negotiation skills necessary to
gain management’s favour during collective bargaining sessions. For collective bargaining to
succeed, there needs to be a mutual agreement between unions and employers concerning
grievance and disciplinary procedures and the effectiveness of personnel policies. The success of
these negotiations largely relies on the union leaders’ negotiating abilities, knowledge of pertinent
labour and industrial regulations, and their capacity to mobilize and coordinate union members to
adhere to specific directives. 258

Employers’ Association on the other hand, is an umbrella organisation of employers in the

Nigerian labour sector. It provides a platform for employers of labour to interact with employees,
government and other relevant institutions for the purpose of promoting industrial harmony. 259
They perform some of the following roles in furtherance of their objectives: 260

(i) The association aims to enroll all qualified employers in the nation and foster positive
relationships between these employers and their employees.

255
Onyebuchi (n 104), Ibid., 13.
256
Ibid.
257
Emma and Collins (n 106), Ibid., 37.
258
Okpalibekwe, Onyekwelu and Dike (n 102), Ibid., 59.
259
F. Traxler, “Employer Associations, Institutions and Economic Change: a Crossnational Comparison” Industrielle
Beziehungen : Zeitschrift für Arbeit, Organisation and Management (2004) 11(1/2), 42-60.< https://nbn-
resolving.org/> accessed September 9, 2024.
260
F.C. Anyim, N.M. Ufodiama and S.A. Adewunmi, “Non-unionization of Employers in Nigerian Oil and Aviation
Industries: Does it Really Matter?” Uniosun International Journal of Management Sciences (2015) 2(1), 111-123.
(ii) The association encourages and provides guidance on the payment of fair wages and salaries
to employees.

(iii) The association assists and provides advice to member companies in resolving complaints or
grievances brought to the association.

(iv) The association supports technical and other educational programs and research to develop
effective workforce in Nigeria.

(v) The association may join or appoint representatives to other groups or associations that share
similar goals, with the purpose of representing the views of its members in national and
international organizations.

(vi) The association communicates and expresses the concerns of its member companies, other
employers, and employees to the government and its agencies, and influences legislation that
affects their interests.

(vii) The association works together with other associations such as the Nigerian Labour Congress
(NLC), the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture
(NACCIMA), and Manufacturers’ Association of Nigeria (MAN), among others.

3.2.2 The Nigerian Export Promotion Council

The Nigerian Export Promotion Council is dedicated to advancing Nigerian goods and services in
the global market. It plays a vital role in resolving issues concerning export procedures,
documentation, and quality standards. 261 The Council collaborates with various stakeholders to
mediate and settle disputes, safeguarding the interests of Nigerian exporters and improving their
competitive edge internationally. 262

3.2.3 The Standard Organization of Nigeria (SON)

261
Omijie Paul Isaac, Contributions of the Nigerian Export Promotion Council (NEPC) in Export Promotion (Master
Thesis, Faculty of Management Sciences, Ahmadu Bello University, 2014).
262
Ibid.
The Standard Organization of Nigeria (SON) is tasked with maintaining product standards, quality,
and safety in both local and international trade. 263 By implementing regulatory guidelines and
helping to resolve disputes related to product quality or compliance, the organization is vital in
fostering consumer trust and safeguarding the reputation of Nigerian goods in the global
marketplace. 264

The SON establishes a body to ensure that substandard products, whether locally made or
imported, are seized, especially when their quality falls short of relevant specifications or poses
health risks.265 These defective items are publicly confiscated and destroyed as a deterrent to other
manufacturers and importers. If a product fails to meet the required standards but does not pose a
health threat, the respective producer or importer is instructed to take corrective action to meet the
standards, with oversight from the organization. 266 Additionally, the SON investigates consumer
complaints and works with manufacturers to resolve them. These complaints serve as valuable
feedback on product performance and help in assessing the implementation of standards. 267

3.2.4 Ministry of Labour and Employment

The Ministry of Labour, Employment and Productivity is one of the parastatals created by the
Constitution for the smooth running of the state. The ministry in Nigeria oversees labour
management tasks, such as creating and enforcing policies related to employment, labor protection,
productivity, industrial peace, workplace safety, and health. This ministry is headed by the
Minister of Labour and Employment.

3.2.4.1 Appointment of the Minister of Labour and Employment

263
A. Okorie and A. Humphrey, “Standards Organization of Nigeria and Funding Challenges to Quality Control,”
Mediterranean Journal of Social Sciences (2016) 7(5), 67-74, 68. <Doi:10.5901/mjss.2016.v7n5p67> accessed
September 9, 2024.
264
E.T. Ebitu, “Consumer Rights, Consumer Protection and Public Policy in Nigeria: A Critical Review,”
International Business Research (2014) 7(12), 120-127, 124. <http://dx.doi.org/10.5539/ibr.v7n12p120> accessed
September 9, 2024.
265
J. Nkiru, “The Standards Organisation Of Nigeria (SON) and the Protection of the Consumer in Nigeria,” The
Nigerian Academic Forum (2010) 19(2), 1-6, 4.
266
Ibid.
267
Ibid.
Section 147 of the 1999 Constitution of Nigeria allows the President to appoint Ministers of the
Federation, following a specific process outlined in the same section. 268 The President nominates
individuals for ministerial positions, and these nominations must be approved by the Senate before
the President can confirm the appointment. Additionally, the President is required to consider the
federal structure of Nigeria when making these appointments, in accordance with section 14(3) of
the Constitution.

The qualifications for a Minister are similar to those required for a member of the House of
Representatives, including being a Nigerian citizen, being at least 30 years old, and having
obtained at least a School Certificate level of education. 269 The appointment of the Minister of
Labour follows the same guidelines, with their functions and powers specified in relevant laws.
The exact type of Nigerian citizenship required for appointment is not explicitly stated and could
include citizenship by birth, registration, or naturalization.

3.2.4.2 The Powers and Functions of the Minister of Labour and Employment

The Trade Disputes Act, which is the main law governing the resolution of industrial disputes in
Nigeria, gives the Minister the authority to intervene in a dispute to facilitate a resolution or to
wait for a report from either party to settle it. The Minister can take the initiative to address the
dispute by communicating their proposed plan to the parties involved. However, if there is an
existing agreement between the parties on how to resolve the dispute, the Minister’s power to
intervene is subject to this agreement.270 Nevertheless, in the interest of public safety and security,
the Minister may still choose to intervene even if an agreement exists, if the agreed-upon method
is unlikely to effectively address the dispute’s negative impact on society.

If the agreed-upon method fails or if there is no such agreement, the parties must come together,
either in person or through representatives, and meet with a mediator agreed upon by both parties
within seven days of the failure or the dispute’s emergence. 271 If there is no settlement within seven
days of the mediator’s appointment, either party must report the dispute in writing to the Minister

268
Section 147(1)-(5), 1999 Constitution of the Federal Republic of Nigeria (as amended).
269
Section 147(5) and 106, Ibid.
270
Section 4(1) Trade Disputes Act, 1976 Cap. T8, LFN 2004.
271
Section 4(2), Ibid.
within three days of the seven-day period’s expiration.272 This report must outline the areas of
disagreement and detail the steps already taken to reach a resolution. 273

It is worth noting that the Trade Disputes Act, Trade Union Act, and Labour Act do not clearly
distinguish between the powers and duties of the Minister of Labour and Employment in resolving
trade disputes. However, it is important to state the power-conferring provisions and the duty-
imposing provisions of the Acts with respect to the Minister of Labour and Employment.

3.2.4.2.1 Powers of the Minister of Labour and Employment

The following are the powers of the Minister of Labour and Employment in resolving labour
disputes, as shown by a close reading of the Trade Disputes Act.274

(a) Power to bind any collective agreement between an employer and employees, in whole or
in part: Even while collective agreements are the result of voluntary, careful, and laborious
negotiation between the parties, they are typically only binding in good faith between the parties
to which they pertain and are therefore not justiciable. After receiving copies of a collective
agreement deposited in compliance with the Act, the Minister is authorized by the Act to issue an
order, the terms of which may state that the provisions of the agreement or any part of them as
may be specified in the order, shall be binding on the employers and employees to whom they
pertain.275 Any person who disobeys the aforementioned order will be found guilty of an offence
and may face a fine of N100 or up to six months in jail if found guilty. Although the parties to an
employment contract are bound by collective agreements once they are stated or implied into it, 276
this express inclusion or necessary implied incorporation can only take place after the Minister’s
approval, in accordance with the general language of section 3(3) of the Trade Disputes Act.

272
Section 6(1), Ibid.
273
Section 6(2), Ibid.
274
1976 Cap. T8, LFN 2004.
275
Section 3(3) Trade Disputes Act, 1976 Cap. T8, LFN 2004.
276
In the case of Abalogu v. S.P.D.C Ltd. (2003)13 NWLR (Pt. 837) 308 at pg. 337, paras. D-E the Supreme Court
held as follows “where a collective agreement is incorporated or embodied in the conditions of a contract of service,
whether expressly or by necessary implication, it will be binding on the parties but not otherwise”. See also
Chukwumah v. Shell Development Company of Nigeria Ltd. (1993)4 NWLR (Pt.289) 512, Daodu v. United Bank for
Africa Plc. (2004) 9 NWLR (Pt. 878) 276.
(b) Power to order parties to comply with any agreed settlement methods by the parties or
their representative: In accordance with the Trade Disputes Act’s existing provisions, the
Minister may issue to the Parties a written notice outlining the steps that must be taken to satisfy
the requirements and may specify in the notice the time within which any specific step must be
taken if he is not satisfied that the requirement for internal/party agreed settlement means has been
substantially complied with. 277 The Minister may proceed to exercise such of his powers under
sections 8, 9, 17 or 33 of the Trade Disputes Act as may seem to him appropriate in the
circumstances where the dispute remains unresolved after the expiration of the period specified in
the notice issued above, or, if no period is specified, after the expiration of fourteen days following
the date the notice is issued. The Minister must be satisfied that the steps specified in the notice
have been taken, or that either party is, on its part, refusing to take those steps or any of them.

(c) Power to appoint a Conciliator: The Minister has the authority to appoint a conciliator when
the parties involved are unable to settle their dispute through any agreed-upon methods, or when
no such methods exist and they mutually agree on mediation, but the mediator also fails to reach
an agreement. In such cases, the Minister can appoint a suitable person to act as a conciliator to
facilitate the settlement of the dispute. 278 The conciliator will investigate the causes and
circumstances of the dispute, negotiate with the parties, and strive to achieve a resolution. The
appointed conciliator acts not as a representative of the disputing parties but as an agent of the
Minister, following the rules and procedures governing conciliation as an alternative dispute
resolution mechanism.

(d) Power to refer the dispute to the Industrial Arbitration Panel upon failure of conciliation:
If a settlement is not reached within seven days of the conciliator’s appointment, or if the
conciliator concludes that they cannot achieve a settlement after attempting negotiations, they must
promptly report this to the Minister of Labour and Employment. Within fourteen days of receiving
this report, the Minister must refer the dispute to the Industrial Arbitration Panel (IAP) established
under section 9 of the Trade Disputes Act.279 The use of “shall” in this context emphasizes that the
Minister’s referral of the dispute to the IAP is a duty as well as a power.

277
Section 4 and 6, Trade Disputes Act, 1976 Cap. T8, LFN 2004.
278
Section 8(1) & (2), Ibid.
279
Section 9(1) & (2), Ibid.
(e) Power to refer the Tribunal’s award back for reconsideration: An arbitration panel,
constituted by the Minister under section 9 of the Trade Disputes Act, must issue its award within
21 days of its formation, or within a longer period if allowed by the Minister. The award is
submitted to the Minister, not directly to the parties involved. If the Minister deems it necessary,
they may refer the award back to the tribunal for reconsideration and will ensure that a copy of the
award is communicated to the parties until the tribunal has reconsidered it. 280

(f) Power to refer the dispute to the National Industrial Court if the Industrial Arbitration
Tribunal’s award is objected to by either party: If either party objects to the award of an arbitral
tribunal appointed under section 9 of the Act and notifies the Minister within the specified time
and manner, the Minister must promptly refer the dispute to the National Industrial Court. In this
case, the court’s decision will be binding on the parties from the date it is issued.281

(g) Power to appoint a Board of Inquiry: When a trade dispute exists or is anticipated, the
Minister may initiate an inquiry into the causes and circumstances of the dispute. If deemed
appropriate, the Minister can refer any relevant matter to a board of inquiry appointed for this
purpose. The board will investigate the referred matter and report its findings to the Minister. 282

3.2.4.2.2 Functions of the Minister of Labour and Employment

Below are the statutory functions assigned to the Minister regarding the settlement of trade
disputes.

(a) Duty to publish an award of the Industrial Arbitration Panel in the Federal Gazette: Upon
receiving the award of the IAP, if there is no objection and it is not deemed necessary to refer the
award back for reconsideration, the Minister is required by law to publish a notice confirming the
award in the Federal Gazette. This publication makes the award binding on the employer and
workers involved from the date of the award or any other specified date.283

280
Section 13(2) & (3), Ibid.
281
Section 13(4), Ibid.
282
Section 33 & 34, Ibid.
283
Section 13(4), Ibid.
(b) Duty to communicate an award of the Industrial Arbitration Panel to the parties: If the
Minister decides not to refer the award back for reconsideration and is satisfied that the award
resolves all issues judiciously, he must promptly provide the parties or their representatives with a
notice of the award and publish it in any other manner he deems appropriate. 284

(c) Duty to receive copies of Collective Agreements from the parties: Parties to a collective
agreement for settling a trade dispute must deposit at least three copies with the Minister within a
specified time frame. The Minister is responsible for receiving these agreements, regardless of the
format (hard copy or soft copy, though hard copy is preferred). An agreement received by an
officer in the Ministry of Labour on behalf of the Minister is considered officially received.

The above succinctly outlines the powers and functions of the Minister of Labour regarding the
settlement of trade disputes in Nigeria.

3.2.5 Federal Competition and Consumer Protection Commission (FCCPC)

Established by the Federal Competition and Consumer Protection Act (FCCPA) 2018, the Federal
Competition and Consumer Protection Commission (FCCPC) is Nigeria’s foremost authority on
competition and consumer protection. “The Commission” is the term used to refer to the FCCPC.
The Commission was established by the FCCPA 2018 to create and encourage competitive,
efficient, and just markets in the Nigerian economy, ensure that everyone has access to safe
products and that the rights of every consumer in Nigeria are protected.285

The objective of the Commission 286 is to create a market that is an example of simplicity,
creativity, responsiveness as well as satisfaction. Its goal is to encourage a lively and equitable
market while guaranteeing that customers are the center of the business and not subsidiary. Its
guiding principles include proficiency, stability, ethics, sensitivity, openness, and responsiveness.

The Commission performs some functions 287 which include the following:

284
Section 13(2), Ibid.
285
Section 3, Federal Competition and Consumer Protection Act (FCCPA) 2018.
286
Section 1, Ibid.
287
Section 17, Ibid.
(i) establishing comprehensive policies and assessing economic activities in Nigeria to
pinpoint anti-competitive, anti-consumer protective, and restrictive practices that could
negatively impact consumers’ economic interests, as well as creating rules and
regulations pertaining to competition and consumer protection;
(ii) providing general advice to the Federal Government on national policies and issues
related to all goods and services, including setting national norms and standards for
competition and consumer protection;
(iii) delivering an annual report on market practices and their effects on consumer choices
and competition in the marketplace;
(iv) conducting investigations or inquiries deemed necessary regarding any matters under
the Act;
(v) eradicating anti-competitive agreements and misleading, unfair, deceptive, or
unconscionable marketing and business practices;
(vi) addressing disputes or complaints, issue directives, and apply penalties when
appropriate;
(vii) exchanging advice with other regulatory bodies or agencies in the relevant industry or
sector concerning consumer protection and competition issues;
(viii) promoting the development and enforcement of quality standards by trade, industry,
and professional associations to protect consumer interests within their sectors;
(ix) requiring registration of imported goods for traceability whenever necessary;
(x) partnering with consumer protection groups and associations to enhance consumer
safety;
(xi) advocating for the interests of consumers in relevant discussions and offer remedies for
harmful practices or exploitation by businesses, trade associations, or individuals;
(xii) taking general measures to minimize risks and harm associated with the consumption
of certain products and services, which may involve restrictions or bans;
(xiii) ensuring that all service providers meet local and international standards for quality
and safety in service delivery;
(xiv) holding companies, firms, trade associations, or individuals accountable by requiring
them to protect, compensate, and provide support to consumers or communities
adversely affected by dangerous or harmful technologies.
Pursuant to section 18 of the FCCPA 2018, the Federal Competition and Consumer Protection
Commission is also empowered to:

(i) make regulations relating to the charging and collection of fees, levies, fines and the
imposition of administrative penalties;
(ii) order the termination of any agreement or arrangement under the Act;
(iii) declare any business practice as abuse of a dominant position of Market power and
prohibit the same, after carrying out necessary investigation;
(iv) prohibit the attachment of extraneous conditions to any transaction as it may deem
appropriate;
(v) prohibit the discrimination or preferences in prices or other related matters;
(vi) create rules around the assessment and gathering of fees, charges, penalties, and fines;
(vii) declare a business practice as an abuse of market power and prohibit it after conducting
an investigation;
(viii) prohibit discriminatory or preferential prices or conditions. 288

Importantly, the Commission has the power to summon and question witnesses and to also request
and examine documents. It could administer oaths and require affidavits for any submitted
documents. It could also demand the submission of reports or information as needed within a
specified time frame and adjourn any investigation or inquiry as necessary. 289

If, at any point during an investigation or inquiry, the Commission believes that the matter under
investigation or inquiry does not warrant further action, the Commission may discontinue the
investigation or inquiry. 290 However, where the investigation or inquiry is discontinued, written
notice must be given to the relevant parties within 14 days, along with an explanation for the
discontinuation. 291 Appeals against the decisions of the Commission can be made to the Tribunal
established under section 39 of the Federal Competition and Consumer Protection Act, 2018.292

3.2.6 Industrial Arbitration Panel (IAP)

288
Section 18(1), (2) & (3), Ibid.
289
Section 18(4), Ibid.
290
Section 37(1), Ibid.
291
Section 37(2), Ibid.
292
Section 38, Ibid.
The Industrial Arbitration Panel (IAP) was established under the Trade Dispute Decree No. 7 of
1976, with the mandate to arbitrate industrial disputes between employers and employees, as well
as intra-union disputes. The Panel’s authority is derived from section 9(1) of the Trade Dispute
Act293 and it can only consider cases referred to it by the Minister of Labour and Employment,
who also oversees its operations.

By virtue of sections 9(1) and 6(1) of the Trade Disputes Act, the Minister of Labour and
Employment is mandated (considering the use of the word ‘shall’ in the section) to issue a referral
to the IAP within fourteen (14) days of the receipt of report that the dispute cannot be amicably
settled through mediation and conciliation. Notably, where the word ‘shall’ is used in a statute,
compliance is mandatory. This was reiterated by the court in the cases of Arthur Nwankwo & 7
Ors v Alhaji Umaru Yar’Adua & Ors294 and N.S.I.T.F.M.B v KLIFCO Nig. Ltd.295 Similarly, the
IAP in its arbitral functions is expected to keep within the terms of the referral instrument. Failure
to do this will mean going beyond the bounds of its jurisdiction. This was further emphasized by
the court in the case of Ajomale v Yaduat & Anor296 as well as in the case of Nestle Nig. Plc v
NUFBTE.297

The mission of the IAP is to foster industrial harmony and relationships between workers and
employers in both the public and private sectors. As a quasi-judicial agency, the Panel aims to
meet the needs of stakeholders in the private and public sectors of the Nigerian economy,
promoting a peaceful atmosphere across all sectors of the country. 298 The Panel is composed of a
Chairman, a Vice Chairman, and at least 10 other members, all appointed by the Minister of
Labour. Out of these 10 members, two must be nominated by organizations representing the
interests of workers. 299 When a trade dispute is brought to the Panel, it will function as an
Arbitration Tribunal, which can consist of a single Arbitrator supported by assessors. Additionally,

293
Cap T8 Laws of the Federation of Nigeria 2004.
294
(2010) LPELR-2109 (SC).
295
(2010) ALL FWLR (Pt 534) 73.
296
(1991) LPELR-305 (SC) pp 8-9, para E.
297
(2009) 15 NLLR (Pt 40) 1 at 74, para E-F.
298
K.B. Essien, “Re-Shaping Institutions for Industrial Dispute Settlement in Nigeria: Perspectives on the Status of
the Industrial Arbitration Panel,” International Journal of Research (2014) 1(6), 463-476, 465.
299
Section 9(2), Trade Disputes Act, Cap T8 LFN 2004.
there may be a combination of arbitrators chosen by employers and workers, in equal amounts,
with either the Chairman or Vice Chairman leading the tribunal. 300

As noted by the court in the case of MTN Nigeria Communications Plc v Private
Telecommunications and Communications & Senior Staff Association of Nigeria (PTECSSAN),301
the IAP is a creation of law, established by the Trade Disputes Act to settle trade disputes. Being
a quasi-judicial body, it is expected to act within the powers conferred on it and restrict itself to
the prayers before it. This was reiterated by the court in Wema Bank Plc v Arison Trading and
Engineering Co. Ltd,302 where the court held that courts of law and tribunals or quasi-judicial
bodies are restricted to prayers sought before them and cannot make orders not sought by a party.
Any action or exercise of powers outside the jurisdiction conferred on it by the Trade Disputes Act
is therefore ultra vires, as observed by the court in The Management of Nestle Nigeria Plc, Ilupeju
Lagos State v National Union of Food, Beverages and Tobacco Employees. 303 Thus, it should be
noted that the IAP being an arbitral and quasi-judicial body cannot exercise the powers of a court
of competent jurisdiction.

The Industrial Arbitration Panel is expected to issue its decision within 21 days or a longer period
as directed by the Minister.304 Once the award is made, a copy will be sent to the Minister who
will then distribute copies to all parties involved and publish the details of the award, including
the deadline for objections.305 If no objections are raised within the specified time, the award will
be officially confirmed and published in the Federal Gazette, binding the parties. 306 Failure to
comply with the award will result in the guilty party being charged with an offense, liable upon
conviction. 307 In case of objections, the Minister will refer the dispute to the National Industrial
Court.308

3.2.7 National Industrial Court of Nigeria (NICN)

300
Section 9(3) & (5), Ibid.
301
(Unreported) Suit No: NICN/ABJ/177/2023, judgment delivered April 26, 2024.
302
[2017] All FWLR [Pt 881] 1007.
303
(Unreported) Suit No: NIC/25/2008, judgment delivered April 2, 2009.
304
Section 13(1), Ibid.
305
Section 13(2), Ibid.
306
Section 13(4), Ibid.
307
Section 14(4), Ibid.
308
Section 14(1), Ibid.
Historically, the National Industrial Court was established during the military government under
the Trade Disputes Decree No. 7 of 1976. At its inception, the court faced numerous challenges
that negatively affected its ability to fulfill its mandate as a specialized court. Although it was
established as a Superior Court of Record, it was not recognized as such in the Nigerian
Constitution, largely because it was created by the military government. Additionally, the court
initially shared concurrent jurisdiction with other Superior Courts of Record, leading to confusion
about its original jurisdiction. 309

To address these issues, the Nigerian government enacted the National Industrial Court Act in
2006. This Act repealed Part II of the Trade Disputes Act and re-established the court as a Superior
Court of Record. Despite this step, litigants continued to file their cases in the Federal High Court,
State High Courts, and the Federal Capital Territory, Abuja High Court of Justice, rather than the
National Industrial Court. To resolve this confusion, the Nigerian government amended the
Constitution through the Constitution of the Federal Republic of Nigeria (Third Alteration) Act,
2010. Section 254C of the 1999 Constitution (as amended) now confers exclusive jurisdiction on
the National Industrial Court of Nigeria to adjudicate labour and industrial relations matters.310

Sections 251, 257, and 272 of the Constitution,311 which were previously invoked by courts and
litigants to contest the National Industrial Court’s jurisdiction, are now subject to section 254C (1)
of the Constitution (Third Alteration) Act, 2010. Additionally, the National Industrial Court of
Nigeria is now listed under section 6(5)(cc) of the 1999 Constitution (as amended) as one of the
Superior Courts of Record in Nigeria.312 Although the National Industrial Court remains a court
of coordinate jurisdiction with the Federal High Court, State High Courts, and the Federal Capital
Territory Abuja High Court, its jurisdiction is now exclusive and cannot be shared with these other
High Courts.

To secure the National Industrial Court’s jurisdiction over labour and industrial disputes, section
11 of the National Industrial Court Act, 2006, abates the jurisdiction of the Federal High Court,

309
G.N. Obafor and C.I. Benson, “The Role of National Industrial Court in the Settlement of Labour Disputes in
Nigeria,” Socialscientia Journal of the Social Sciences and Humanities (2023) 8(2), 14-28, 21.
<https://journals.aphriapub.com/index.php/SS/> accessed September 9, 2024.
310
Section 254C, 1999 Constitution of the Federal Republic of Nigeria (as amended).
311
1999 Constitution of the Federal Republic of Nigeria (as amended).
312
Section 6(5)(cc), Ibid.
State High Courts, and the Federal Capital Territory Abuja High Court to entertain labour or
industrial disputes, except in part-heard cases. 313 In addition to its exclusive jurisdiction in civil
cases and matters, section 254C (1) of the Constitution grants the National Industrial Court of
Nigeria the power to address any issues related to the application of international conventions,
treaties, or protocols ratified by Nigeria that pertain to labour, employment, workplace, industrial
relations, or related matters. 314 This provision enables the court to effectively handle bilateral
agreements between Nigeria and foreign countries on labour and industrial relations, particularly
within the framework of the International Labour Organization (ILO).

The Constitution of the Federal Republic of Nigeria, adopted in 1999, gives the National Industrial
Court of Nigeria (NICN) one of the broadest jurisdictions of any court in Nigeria. In civil and
criminal matters, the NICN has jurisdiction over cases specified in section 254C (1) of the
Constitution. This jurisdiction takes precedence over that of any other court dealing with similar
subject matter. However, this does not mean the NICN can arbitrarily intrude on the territory of
other courts. The National Assembly has the power to grant the NICN additional jurisdiction over
matters beyond those already specified in section 254C, which could potentially expand the
NICN’s jurisdiction beyond labour and employment issues.315

The NICN also has jurisdiction over all matters related to, incidental to, or associated with any
labour or employment dispute. This includes exclusive jurisdiction over matters connected to,
arising out of, or in any way related to the subjects over which jurisdiction is granted in section
254C of the Constitution316. However, there have been instances where the NICN has declined to
hear certain claims. For example, in Akinyemi v. Crawford University,317 the NICN declined to
hear a defamation claim in a wrongful termination suit, stating that it only has authority to hear
cases involving employment and labor conflicts. Some argue that the NICN should have
transferred the case to an appropriate court or struck out the claim.

313
Section 11, National Industrial Court Act, 2006.
314
Section 254C (1), 1999 Constitution of the Federal Republic of Nigeria (as amended).
315
Ckukwuma Obinna Victor, A Critical Analysis of the Impact of the National Industrial Court of Nigeria on the
Employer – Employee Relationship (Undergraduate Thesis, Faculty of Law, Nnamdi Azikiwe University, Awka,
2016).
316
Ibid.
317
(2011) 22 NLLR (Pt. 61) 90.
The NICN’s criminal jurisdiction, granted by section 254C (5) of the 1999 Constitution, allows it
to hear any cause or issue over which it has been granted jurisdiction by the Constitution, any other
Act of the National Assembly, or any law. 318 In criminal matters, the NICN shares jurisdiction
with other courts. The NICN has original jurisdiction over all subjects listed in section 254C (I)
(a)-(k), (2), and (4) of the 1999 constitution. The Black’s Law Dictionary refers to original
jurisdiction as a court’s power to hear and decide a matter before any other court can review it.
Appellate jurisdiction, on the other hand, refers to a higher court’s ability to review and modify
the decision of a lower court. The NICN has the authority to hear appeals from the rulings or
awards of various bodies, including the Industrial Arbitration Panel, the Registrar of trade unions,
and decisions or recommendations of any administrative body or commission of inquiry related to
employment, labor, trade unions, or industrial relations. 319

The National Industrial Court of Nigeria (NICN) also has Judicial powers—the authority granted
to courts and judges to hear, rule on matters, interpret, and apply the law when disputes arise. The
NICN, being a higher court of record established by the constitution, possesses inherent powers
and punishments like other courts. According to the 1999 Constitution of Federal Republic of
Nigeria (as amended), the NICN is vested with all the powers of a High Court to exercise its
jurisdiction as conferred by the Constitution or by an Act of the National Assembly. 320

Additionally, the National Assembly may grant the NICN extra powers beyond those provided by
the constitution to enhance its effectiveness. These powers enable the NICN to confirm, vary, or
enforce judgments, awards, or orders made by other courts, tribunals, or bodies. The court also has
the power to:

(a) request a new hearing and decision under fair conditions,

(b) issue a judgment in favor of any party,
(c) issue an order of mandamus, prohibition, or certiorari as necessary,
(d) issue a declaratory order,
(e) provide urgent temporary relief, and

318
Section 254C (5), 1999 Constitution of the Federal Republic of Nigeria (as amended).
319
Obafor and Benson (n 158), Ibid., 24.
320
Section 254D (1), 1999 Constitution of the Federal Republic of Nigeria (as amended).
 (f) issue an appropriate order for compensation or damages as outlined in the National
Industrial Court Act or any relevant legislation.321

CHAPTER FOUR

LABOUR DISPUTE SETTLEMENT IN NIGERIA: CHALLENGES AND IMPACTS

4.1 Challenges to Effective Labour Dispute Settlement in Nigeria

4.1.1 The Issue of Time

In Nigeria, it has been observed that formal mechanisms like the Industrial Arbitration Panel and
the National Industrial Court are commonly utilized to resolve industrial disputes. The Industrial
Arbitration Panel, for instance, often takes more than 12 months to reach a decision, leading to a
lack of confidence and frustration among the parties involved. 322 Even though the Industrial
Arbitration Panel is supposed to make its award within 21 days, this timeframe is rarely met,
causing delays in the justice system and hindering the settlement process in the short and long
term.323

4.1.2 The Issue of Place

The issue of place is closely linked to the issue of time when it comes to resolving disputes within
a workplace. Resolving disputes is not just an act but also an art, as it requires considering various

321
Obafor and Benson (n 158), Ibid., 25.
322
K.B. Essien, “Re-Shaping Institutions for Industrial Dispute Settlement in Nigeria: Perspectives on the Status of
the Industrial Arbitration Panel,” International Journal of Research (2014) 1(6), 463-476, 464.
323
Ibid., 465.
factors to ensure efficient and lasting solutions in work environments. 324 It is important to take into
account the nature and scope of a dispute before deciding where or the place to resolve it. If a
dispute is meant to be resolved within the organization, it should not be taken to external bodies,
and vice versa. As the Yoruba saying goes, ‘not all laundry should be aired in public.’ Simple
labour disputes should be settled internally and not escalated to litigation or arbitration unless
absolutely necessary. 325

4.1.3 The Issue of non-consideration of Cultural Factors

It has been suggested that African societies have strong cultural ties, so it is important to consider
their cultural contexts when setting up dispute resolution processes.326 It has equally been noted
that modern conflict management in Africa has not always taken into account the importance of
incorporating local and international cultural elements. 327 It is crucial to recognize these factors
not only for the reasons mentioned, but also because traditional methods of resolving disputes have
been prevalent in African societies.

African industrial relations scholars should explore how the African cultural system of resolving
disputes could be incorporated into labour dispute settlement processes. For example, in Africa,
there is a ‘win-win’ approach to resolving disputes as opposed to the ‘win-lose’ mindset commonly
found in Western models. Neglecting cultural influences in conflict resolution, it has been argued
as being risky. 328 This suggests that the lack of integration of indigenous cultural practices in
Nigeria’s industrial relations model may be hindering the effectiveness of current dispute
resolution mechanisms in fostering positive industrial relations in the country.

A number of fundamental components of the African dispute management system are also
typically absent from the modern dispute resolution process, including justice, humanity,

324
Olatunji, A.G. Issah and E.E. Lawal, “Dispute Resolution Mechanisms and the Challenges of Harmonious
Industrial Relations in Nigeria,” Osun Sociological Review (2015) 3(1), 187-198.
325
Ibid.
326
G.E. Idang, “African Culture and Values,” Phronimon (2015) 16(2), 97-111, 98.
327
O. Columbus, “African Cultural Values and Inter-communal Relations: The Case with Nigeria,” Developing
Countries Studies (2014) 4(24), 208-217, 214. <www.iiste.org> accessed September 4, 2024.
328
Olatunji, Issah and Lawal (n 3), Ibid.
confidence, truth, and mutual respect. Furthermore, because the people trust and respect the
traditional rulers for maintaining the culture of the people, they are crucial stakeholders to take
into account when managing disputes involving both labour and non-labour concerns in society.329

4.1.4 The Issue of Insincerity, Subjectivity and Bias

In Western culture, there is a strong emphasis on individualism, which is evident in the way
disputes are resolved through their legal systems. 330 Because the Nigerian industrial relations
system is influenced by the Western model, stakeholders in Nigeria tend to show bias and
subjectivity in resolving issues.

In Nigeria, it is frequent to witness situations where employers and employees accuse each other
of being self-centered, biased, and subjective.331 For example, organizations like NUT, ASUU,
and other education unions are often criticized for their selfishness when they go on prolonged
strikes without contemplating the impact on the youth. Conversely, these unions frequently accuse
employers, particularly the government, of reneging on their promises.

4.1.5 The Issue of Parties Involved in the Settlement

Owing to the fact that the government is the largest employer of labour in Nigeria, it holds
significant influence in industrial relations and is vital in resolving disputes within the country’s
workplaces. 332 However, the government’s lack of commitment to implementing policies and
fulfilling promises has hindered the effectiveness of existing dispute resolution mechanisms and
the promotion of harmonious industrial relations in Nigeria. 333

In addition to the aforementioned, official statements, guidelines, and regulations for the resolution
of labour disputes frequently lack the necessary firmness, trustworthiness, and finesse. An

329
Columbus (n 6), Ibid., 211.
330
A. Humphrey and A. Bluic, “Western Individualism and the Psychological Wellbeing of Young People: A
Systematic Review of Their Associations,” Youth (2021) 2, 1-11, 2. <https://doi.org/10.3390/youth2010001> accessed
September 4, 2024.
331
G. Charness and E. Haruvy, “Self-serving Biases: Evidence from a Simulated Labour Relationship,” Journal of
Managerial Psychology (1999) 1-15, 3. <http://escholarship.org/uc/item/1vs8w2k7> accessed September 4, 2024.
332
Amanawa, D. Ebiegberi and E. Dametor, “Industrial Relations’ Impact on Labour Management: A Nigerian
Perspective,” International Journal of Academic Multidisciplinary Research (2024) 8(1), 265-272, 267.
<www.ijeais.org/ijamr> accessed September 4, 2024.
333
Olatunji, Issah and Lawal (n 3), Ibid.
additional element that hinders the effectiveness of the current dispute resolution systems is the
government’s tendency to determine employment relations terms and conditions unilaterally. It
has been asserted that strikes are an essential tool for guaranteeing favorable working conditions
in the public sector because of the unfairness of unilateral decision-making and the public
employer’s reluctance to engage the bargaining mechanism. 334

The fact that labour-management negotiations are conducted informally or as a result of political
pressure exerted by the unions is another way the government is disguising the current conflict
resolution procedures. The Trade Disputes Act of 1976 and any later revisions to it contained the
statutory machinery for resolving disputes; but, due to the lengthy process and delays suffered by
aggrieved parties, this machinery has proven ineffective. Judgements can take years to complete,
and justice delayed is justice denied. Furthermore, there has not been much of an increase in
workplace harmony due to the statutory disputes resolution system.

Moreover, parties to the dispute may not be strategic enough in their communications and dialogue
towards ensuring the settlement of labour disputes. 335 In the recent case of Federal Government of
Nigeria (FGN) v. Academic Staff Union of Universities (ASUU),336 one of the major issues distilled
for determination was the extent of fulfilment of ASUU’s demands by the Federal Government
since the 2020 Memorandum of Action with Federal Government as follows:

i. Funding for Revitalisation of Public Universities as per 2009 Agreement;

ii. Earned Academic Allowance (EAA) payments;
iii. State Universities Proliferation;
iv. Constitution of Visitation Panels/Release of White Paper on report of Visitation Panels;
v. Reconstitution of Government Renegotiation Team for the renegotiation of 2009
Agreement which was renegotiated 2013/2014 and due for re-negotiation by
2018/2019;

334
C.B. Uzoh, “Strike Action: The Only Weapon Available to Public Sector Employees in Nigeria in their Agitation
for Better Working Conditions,” ZIK Journal of Multidisciplinary Research (2021) 4, 1-19, 2.
335
N.S. Uzougbo, “Effective Strategies for Resolving Labour Disputes in the Corporate Sector: Lessons from Nigeria
and the United States,” World Journal of Advanced Research and Review (2023) 20(3), 418-424, 421.
<https://doi.org/10.30574/wjarr.2023.20.3.2451> accessed September 4, 2024.
336
(Unreported) Suit No. NICN/ABJ/270/2022, ruling delivered on 30 May, 2023.
 vi. The migration of ASUU members from IPPIS to University Transparency and
Accountability Solution (UTAS) developed by ASUU which was on test at Nig Tech.
Dev. Agency (NITDA).

Another issue interrogated in this case was whether the prolonged strike by the Academic Staff
Union of Universities (ASUU) which started since 14 February 2022 was legal even after statutory
apprehension by the Minister of Labour and Employment having regards to the provision of
sections 4, 5, 6, 8 and 18(1) of the Trade Dispute Act, 2004. More so, in this case, it was
determined, having regards to the provisions of Section 43(1)(a) Trade Disputes Act, 2004 titled
‘special provision with respect to payment of wages during strikes and lock outs’ whether it was
lawful to pay wages and or other remuneration to the academic workers in Universities in Nigeria
who took part in the strike for the period of the strike beginning from 14 February 2022 to the day
the strike ceased.

The Federal Government in this case further sought an order of injunction restraining the
Academic Staff Union of Universities and or its agents and members from continuing to shut down
universities in Nigeria and continuing on the prolonged strike which started since 14 February
2022. According to them, embarking on a roll-over strike and indefinite strike when the trade
dispute had been statutorily apprehended by the Minister of Labour and Employment, a
conciliator/conciliation process set in motion in breach of sections 6 and 18(1)(a) and (b) of the
Trade Disputes Act was unlawful.

Having regards to the provisions of section 43(1) (a) of the Trade Disputes Act as well as the ILO
Convention No. 87, the court held that it was not mandatory for the Federal Government to
remunerate the members of the ASUU for the period during which they embarked on strike as
there was no such agreement between the two parties in this case on whether ASUU should be
remunerated in such circumstance. As such, the court noted that unless the Federal Government
agreed to pay, it had no obligation to do so. The court acknowledged the unreadiness of the Federal
Government in this case to pay and further strengthened its position with the provisions of section
254C(1)(f) and (h), and (2) of the 1999 Constitution as well as section 7(6) of the National
Industrial Court (NIC) Act 2006 which permit the National Industrial Court (NIC) to, when
adjudicating, apply international best practices in labour, and the Treaties, Conventions,
Recommendations and Protocols on labour ratified by Nigeria. 337

The tendency and approach of the Government during negotiation in wanting to always stamp its
position notwithstanding the crying interest of the union is one of the factors that most often scuttle
the negotiation process. On the other hand, the labour union leadership, as a result of their
inordinate desire, may insist on unrealistic demands thereby making the settlement process unduly
prolonged and ultimately leading to strike action. Thus, parties to labour disputes are expected to
be strategic and prudent in their pursuit of resolving such disputes.

4.1.6 Inflexible and Cumbersome Dispute Resolution Mechanisms

The processes for resolving trade disputes are often inflexible and complicated, which seems to go
against the purpose of these procedures, intended to temporarily halt strikes and offer a fair and
prompt solution to conflicts.338 It is inflexible for parties to be required to go through the entire
dispute resolution process before reaching the National Industrial Court (NIC). 339 Parties should
have the option to choose between mediation or conciliation, not both. The dispute settlement
mechanisms outlined in the Act do not align with international labour standards. The International
Labour Organization (ILO) disapproves of such intricate dispute resolution procedures. According
to the ILO, dispute resolution methods should solely aim to facilitate negotiation and should not
be overly complicated or slow, hindering the ability to lawfully strike effectively. 340

4.1.7 The Power of the Minister

The Act gives the Minister extensive powers which could lead to misuse. For example, the Minister
has exclusive authority to appoint conciliators, members of the IAP, and the Board of Inquiry. 341
This concentration of power in the Minister’s hands may affect the dispute resolution outcome,

337
Ibid.
338
C.C. Obi-Ochiabutor, “Trade Disputes Resolution Under Nigerian Labour Law,” The Nigerian Juridical Review
(2002-2010) 9, 71-89, 82.
339
Ibid.
340
Olatunji, Issah and Lawal (n 3), Ibid.
341
O.G. Wosu, “The Procedures for Settlement of Trade Disputes in Nigeria,” African Journal of Law and Human
Rights (2022) 6(2), 45-51, 47.
particularly if the government is involved in the dispute or the Minister has a vested interest. This
situation potentially undermines the decision-makers’ independence in resolving disputes.

Moreover, parties to a dispute cannot approach the arbitral panels directly; they must go through
the Minister first. The Minister’s discretionary power to refer disputes to the arbitral panel can
result in delays and potential misuse, as the Minister may be slow to act or refuse to act altogether.
The IAP can only consider matters referred by the Minister, and the IAP’s awards are not final
until approved by the Minister, which weakens the IAP’s autonomy as a decision-making body.342

The Act should allow the IAP’s awards to be final, and the responsibility to appeal the award
should rest with the parties, not the Minister. Lastly, the Act does not address what happens if the
Minister does not refer a dispute to other dispute resolution mechanisms within the 14-day
timeframe.

4.2 General Barriers to Participation in Disputes Resolution

4.2.1 Structural Barriers

Organizational, institutional, and/or situational limitations that hinder the parties in dispute from
getting together and coordinating their interests constitute one type of barrier. These obstacles
include limitations on information sharing that is necessary for the parties to identify and convey
pertinent priorities as well as agency issues where the interests of political or economic elites,
factional leaders, or representatives are prioritized over the interests of the main parties. They also
consist of bureaucratic procedures that promote short-term, particular interests over longer-term,
general issues and discourage accepting political costs and risks. 343 In addition, the fact that the
required concessions and compromises must be made successively rather than simultaneously
presents another obstacle in many conflicts. This means that one side must “go first” without
knowing if the other side will follow suit, which calls for political bravery.

4.2.2 Tactical and Strategic Barriers

342
Ibid., 51.
343
B. Bland, B. Powell and L. Ross, “Barriers to Dispute Resolution: Reflections on Peacemaking and Relationships
between Adversaries,” 2012 <https//10.1093/acprof:oso/9780195371895.003.0010> accessed September 4, 2024.
Another obstacle stems from the interactions of self-interested bargaining and negotiation. Parties
aim to maximize their own benefits by using tactics like secrecy, deception, and bluffing. 344 While
these strategies may not be illogical from a negotiation perspective, they do result in extended
negotiations and higher costs. By failing to cooperate and focusing on individual gains, the parties
risk reducing the overall value of any agreements reached, akin to diminishing the size of the “pie”
they are dividing.345

4.2.3 Non-Recognition of Potential for Win-Win Agreement

Parties sometimes believe that there are no win-win trades or efforts to create value together. In
extreme situations, where parties see each other as enemies out for destruction, they view the
situation as a zero-sum game where one side’s gain means the other side’s loss. In such cases, they
may only agree to temporary truces while preparing for the next phase of conflict. If moderate
elements in both parties overlook shared interests and fail to recognize each other, hardliners will
dominate policy to everyone’s disadvantage.

In addition, these hardliners will label individuals on their own side who show interest in talking
and compromising as betrayers. Despite being a common scenario in some conflicts, there are
however, instances where communication and careful negotiations have been able to break through
this barrier, resulting in former enemies being willing to work together, although cautiously. 346

4.2.4 Judgmental Overconfidence

Overconfidence in one’s judgment and excessive optimism in the ability to predict and control
events is a widely observed phenomenon. 347 This overconfidence can be particularly problematic
in conflict situations, where asymmetries in information play a significant role. Parties involved in
conflicts tend to have a better understanding of their own plans and information than that of the
other side. They also tend to be more confident in their ability to thwart the other side’s plans than

344
J.P. Gasper and M.E. Schweitzer, “The Emotion Deception Model: A Review of Deception in Negotiation and the
Role of Emotion in Deception,” Negotiation and Conflict Management Research (2013) 6(3), 160-179, 161.
345
B. Bland, B. Powell and L. Ross (n 21), Ibid.
346
Uzougbo (n 14), Ibid.
347
T. Riaz, “Impact of Overconfidence, Illusion of control, Self Control and Optimism Bias on Investors Decision
Making; Evidence from Developing Markets,” Research Journal of Finance and Accounting (2015) 6(11), 110-115,
112.
in predicting the other side’s responses. This leads to both parties feeling that their position will
improve in the future, causing them to take a more rigid stance or be less willing to negotiate. 348

4.2.5 Insistence on Equity or Justice

It is common for negotiating parties to trade concessions in order to improve their own positions
during negotiations.349 However, in longstanding conflicts, parties often expect more than just a
simple advancement from the current situation. They seek fairness, equity, or even justice in the
final agreement, looking for a distribution of gains and losses that reflects the strength and validity
of their claims. These requests for fairness and justice can complicate negotiations, especially
when the parties have conflicting viewpoints on past events and what would constitute a fair
outcome. 350

4.3 Impacts of Labour Disputes on Nigeria’s Socio-economic Development

Incessant work disruptions due to industrial disputes have significant socio-economic impacts on
Nigeria’s development. 351 Regardless of the reasons for strikes, they result in negative socio-
economic consequences. Economically, strikes cause disruption and negatively affect economic
growth and development, decreasing national productivity and scaring away potential foreign
investment. 352 Human productivity is a crucial factor in calculating national productivity, but
strikes and conflicts can lead to work stoppages and lost man-days, reducing productivity and
negatively impacting the Gross Domestic Product (GDP) and Gross National Product (GNP). 353

Sociologically, industrial conflicts and strikes have severe consequences. Work is a fundamental
human connection, creating the basis for social integration. Frequent strikes create an unstable
industrial environment, discouraging foreign investors and leading to a distorted return on

348
Ibid.
349
P.J. Carnevale, “Negotiation and Meditation,” Annual Review of Psychology (1992) 43, 531-582, 543.
<www.annualreviews.org/aronline> accessed September 4, 2024.
350
B. Bland, B. Powell and L. Ross (n 21), Ibid.
351
K. Margret, S. Margret and Abiola, “Impact of Industrial Conflict on Economic Development in Nigeria: (A Study
of Nigerian Students and Trade Union in Ogun State),” International Journal in Advanced Research in Social
Engineering and Development Strategies (2014) 2(1), 69-81, 74.
352
O.S. Asogwa, “The Impact of Strike Action on Productivity: An Analysis,” Nigerian Journal of Arts and
Humanities (2024) 4(1), 1-11, 6.
353
I.L. Ngbuelo, “Implications of Strike on Socio-economic Growth in Nigeria,” European Journal of Humanities
and Educational Advancements (2021) 2(7), 104-109, 108. <https://www.scholarzest.com> accessed September 4,
2024.
investment due to work stoppages.354 Therefore, addressing the root causes of industrial disputes
is crucial for Nigeria’s socio-economic development.

Based on the visible importance of work in society as a foundational aspect of human life and as
a key way to shape and maintain social norms, it can be agreed that work goes beyond just
providing money for necessities. Through working, individuals are connected to society, gain
social recognition and standing, and form their personal identity. In many cultures, work is seen
as essential for survival and gives purpose and significance to life. 355

A cursory examination of the foregoing indicates that work is an essential social activity that gives
workers a sense of self-worth, societal belonging, and, most importantly, a sense of life. This
supports the assertion that “for the majority of people, working entails earning a living—that is,
making money.”356 However, people also work because of the other rewards it offers, like the
chance to use and develop skills, the chance to exert power, a sense of accomplishment,
recognition, status, and companionship, in addition to the opportunity to do something worthy. 357

More so, continuous work stoppages due to strikes create a sense of isolation among individuals
in industrial society and disrupt the social aspect of work. 358 Strikes also lead to a negative
perception and stigma on both parties involved in the conflict, with frequent and lengthy strikes
causing society to view them unfavourably. For example, ASUU is often seen as self-serving and
greedy, while the government is viewed as insensitive. Ultimately, it is no gainsaying that strikes
hinder social development in Nigeria. 359

In summary, the difficulties and socio-economic implications of labour disputes such as strikes
cannot be overemphasized. In addition to impeding economic growth and national productivity, it

354
Asogwa (n 30), Ibid.
355
R. Yeoman, “Conceptualising Meaningful Work as a Fundamental Human Need,” Journal of Business Ethics
(2013) 125(2), 1-47, 4.
356
Ngbuelo (n 31), Ibid.
357
J.S. Anku, B.K. Amewugah and M.K. Glover, “Concept of Reward Management, Reward System and Corporate
Efficiency,” International Journal of Economics, Commerce and Management (2018) 6(2), 621-637, 623.
<http://ijecm.co.uk/> accessed September 4, 2024.
358
C.U. Wokoma, “The Effects of Industrial Conflicts and Strikes in Nigeria: A Socio-economic Analysis,”
International Journal of Development and Management Review (2011) 6, 32-40, 38.
359
Ibid.
also isolates man from the social connections available in his place of employment and slows down
the socialization process.

CHAPTER FIVE

SUMMARY OF FINDINGS, RECOMMENDATIONS AND CONCLUSION

5.1 SUMMARY OF FINDINGS

In the course of this long essay, the legal and institutional frameworks for the settlement of labour
disputes in Nigeria have been critically examined. This long essay has shown that dispute in human
relations is inevitable, including labour relations in the formal sector. This disputes significantly
affects not only the parties involved but also the social and economic stature of the country. Labour
dispute may mean any disagreement between parties who are in employment relationship
regarding terms of employment, including wages, hours of work, benefits, working conditions,
inter alia.

This project equally considered the factors that ultimately result in labour disputes. It has shown
that parties often fail to adhere to the terms of collective bargaining, thereby dishonouring the
agreement and stirring serious labour conflicts. Similarly, unfavourable conditions of work, low
pay and inadequate welfare services have been presented as forming part of the factors spurring
labour dsputes. In addition, strikes and lockouts have been identified as some of the common
consequences of labour disputes in Nigeria.

More so, this long essay considered the importance of Alternative Disputes Resolution (ADR) in
the settlement of labour disputes. It offered exposition to some common forms of Alternative
Disputes Resolution (ADR) mechanisms pivotal to labour dispute settlement under the Nigerian
Labour Law, including mediation, negotiation, conciliation, arbitration, among others. According
to this long essay, these mechanisms are traditional methods of resolving disputes which have been
considered worthy of application in modern times. As such, most of these Alternative Disputes
Resolution (ADR) mechanisms have been recognized as effective and cost-friendly and thereby
adopted in several legislation such as Trade Disputes Act, 2004, Rules of Professional Conduct for
Legal Practitioners, 2007, Arbitration and Mediation Act, 2023, among others.

This project also recognized industrial democracy and industrial harmony as the heart of industrial
peace in industrial relations without which dispute would become a re-occuring event in almost
every employer-employee relationship. Fundamentally, this project evaluated the composition and
structures of a number of laws as well as institutions regulating labour dispute settlement in
Nigeria. It has shown that the Trade Disputes Act, 2004, the Labour Act, 2004, the National
Industrial Court Act, 2006 and the most recent Arbitration and Mediation Act, 2023 are the extant
legislation for the settlement of disputes in industrial relations in Nigeria.

This long essay has further revealed the wide range of power wielded by the Minister of Labour
and Productivity in his role in labour dispute settlement. The Minister is like the vehicle through
which each (external) mechanism for labour dispute resolution moves and functions. For instance,
disputes are usually referred to the Industrial Arbitration Panel (IAP) by the Minister and not the
parties upon receipt of the failure of conciliation. The Minister equally has the power to set up a
Board of Inquiry to carry out investigation on the issues in dispute between the parties and report
back to him. He could also suo motu apprehend a dispute and refer same to the National Industrial
Court (NIC) without the need for a Board of Inquiry.

Similarly, the Minister of Labour and Productivity exercises some measures of power and control
in the appointment of persons as conciliator and members of the Board of Inquiry. More often than
not, persons appointed to act as conciliators, whom the Trade Disputes Act requires to be fit
persons simply, are appointed from within the ministry. This may directly or indirectly impair the
independence of the acts of the conciliator in the process of resolving labour disputes. Persons who
form the Board of Inquiry are also persons deemed fit and appointed by the Minister for the
purpose of resolving the dispute. Their appointment as such is one which questions their
credibility, transparency and independence in the pursuit of investigating the issues arising in the
dispute, especially in cases where the Government is a party. In other words, such persons forming
the Board are answerable to the Minister who appointed them. According to this long essay, this
is one important factor impeding the effectiveness of labour dispute settlement mechanisms in
Nigeria.

Furthermore, this project has identified the rigid, cumbersome and lengthy nature of the dispute
settlement mechanisms as bottlenecks to speedy and effective resolution of disputes. It takes up to
21 days for a dispute to be reported to the Minister after the failure of the internal/voluntary
grievance procedure. Thereafter, there are additional waiting periods at each stage of the process,
resulting in a lengthy timeline before a final decision is reached.

Nonetheless, this long essay has shown that the socio-economic development as well as the
political stability of Nigeria, to a very large extent, hinges on the absence or overall reduction of
labour disputes such as strikes, lockouts, etc in the country and the promotion of industrial peace
and harmony in the labour sector.

5.2 RECOMMENDATIONS

In the preceding chapters, several legal frameworks for the settlement of labour disputes in Nigeria
have been critically appraised. Consequently, the recommendations based on the findings of this
long essay are presented thus:
1. The Industrial Arbitration Panel (IAP) and the National Industrial Court (NIC) should be
separated from the public service bureaucracy to improve their efficiency;

2. The government should have impartial arbitrators to reduce delays and decrease the workload
of the IAP, similar to what is done in developed countries;

3. The Minister should broaden the scope of conciliation by appointing unbiased individuals from
outside the ministry who can act as a neutral third party and mediator to promote movement
towards resolution without imposing suggestions or personal opinions;

4. The IAP should receive funding from the government through the consolidated revenue to
ensure its impartiality in making awards;

5. The government and lawmakers should re-evaluate and reduce the time it takes to transition
from one dispute resolution mechanism to another, such as conciliation to arbitration, to adhere to
the key principle of the National Labour Policy and International Best Practices, which is to
quickly resolve disputes through established institutions;

6. In line with democratic principles, parties should have the freedom to choose the mechanism or
method for referring cases, as they will be more likely to use a mechanism in which they have
confidence rather than being directed by the government;

7. The government should engage private conciliators and arbitrators who meets its criteria to
address bureaucratic bottlenecks and reduce delays in dispute resolution;

8. There should be a prompt review of fines associated with statutory penalties to prevent their
infringement by parties in dispute;

9. Officials responsible for managing trade disputes should undergo regular training, both locally
and internationally, to improve their skills, enhance their performance, and stay up-to-date on
global trends and challenges;

10. The services rendered by the IAP and the NIC should be commercialized, in the sense that
parties should be charged for their use by paying filing fees and engaging lawyers at the NIC, to
encourage the use of internal mechanisms and minimize disputes;
11. Disputes of interest related to essential or non-essential services should be promptly referred
to the IAP or NIC, depending on the severity of the issues, to encourage quick resolution;

12. The Minister’s excessive power and authority regarding labour dispute resolution should be
minimized to ensure transparency and fairness in the outcomes;

13. Legislative amendments, particularly to the Trade Disputes Act, should be made to limit the
Minister’s excessive control and to provide a more efficient and streamlined system for resolving
disputes;

14. Alternative Dispute Resolution (ADR) should be prioritized in the dispute resolution process
and integrated with existing settlement mechanisms.

5.3 CONCLUSION

In the light of the foregoing long essay, the extant legal frameworks for the settlement of labour
disputes in Nigeria have been interrogated. It has been discovered that the labour dispute settlement
mechanisms provided by the Trade Disputes Act are essential for the resolution of labour disputes.
However, there is a concession that these dispute settlement mechanisms are fraught with some
notable challenges.

Under the Trade Disputes Act, the processes and procedures of dispute resolution are too
cumbersome and lengthy, thereby defeating the original essence of Alternative Dispute Resolution
(ADR), which is an easy, flexible and timely mode of dispute resolution. This bottleneck runs foul
of international best practices in labour relations. In addition, the Minister of Labour and
Productivity has always been known, by the enablement of the relevant provisions of the Trade
Disputes Act, for his active involvement in almost every stage of trade dispute resolution. In this
wise, the bureaucratic tendency and excessive authority of the Minister as well as its overall effect
on dispute resolution cannot be completely written off. These challenges, among others, therefore
need to be addressed by government and legislators for the purpose of having an effective dispute
resolution system. A more comprehensive and an up-to-date legal framework for settlement of
labour disputes, aside the recent Arbitration and Mediation Act, 2023 also needs to be enacted.
On the whole, dispute settlement is one which occupies a pride of place in industrial relations of
any country. It has significant bearing on the continuity or otherwise of industrial relations in the
labour sector. Similarly, dispute settlement determines the potential for industrial peace and the
general socio-economic stability of the country.

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THESES
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LECTURES / SEMINARS

Akinbode J.O., Industrial Disputes in Nigeria (A Lecture delivered at the Award Fellowship and
Induction of New Members of Chartered Institute of Labour and Industrial Relations on 19 th
January, 2019).

ILO, Collective Dispute Resolution through Conciliation, Mediation and Arbitration: European
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Through Mediation, Conciliation, Arbitration And Labour Courts at Nicosia, Cyprus on 18 th-19th
October, 2007).

DICTIONARY

Black’s Law Dictionary, Bryan A. Garner (ed.), 9 th ed.