The Nigerian Senate was divided on Wednesday, May 21, over a proposed bill aimed at regulating and formalizing employment in the country’s informal sector. Sponsored by Senator Musa Sani, the bill seeks to empower the National Directorate of Employment (NDE) to license and monitor private employment agencies that would oversee recruitment, social security, and data management for domestic workers, apprentices, interns, and other informal sector employees.
Senator Sani explained that the informal sector, which constitutes a significant part of Nigeria’s economy, often relies on family members, apprentices, and a small number of paid workers. He argued that the sector lacks proper regulation, which leads to violations of workers’ rights and the absence of labour protections, such as fair wages, job security, and safe working conditions. He also pointed out that Nigeria’s informal sector does not comply with International Labour Organisation (ILO) standards, to which Nigeria is a signatory.
“The informal sector shows evidence of violation of employees’ rights and non-implementation of labour regulations,” Sani said, adding that the sector’s shortcomings include a “decent work deficit.” He emphasized that the bill aims to address these issues by ensuring fair treatment, adequate pay, and safe working conditions for informal workers. “The primary goal of this bill is to regulate this sector to promote rights at work, social protection, and social dialogue,” Sani concluded.
The bill proposes granting the NDE the authority to regulate and oversee private employment agencies operating in Nigeria, with the aim of creating a more formalized employment system for informal workers.
However, the bill’s proposal sparked strong debate among lawmakers. Some senators expressed support for the bill, believing it could offer much-needed protection for informal workers. Senator Adams Oshiomhole, however, raised concerns that the bill could inadvertently legitimize worker exploitation. He pointed out that many private recruitment agencies in Nigeria already charge excessive fees for placing workers, only for those workers to receive low wages.
“Public and private sector agencies use third parties to recruit low-level staff. These agencies charge N150,000 to N200,000 per person, but the staff earn as little as N40,000 monthly,” Oshiomhole said. He warned that the bill might allow this system to continue, further underpaying vulnerable workers.
Senator Diket Plang, Chairman of the Committee on Labour and Productivity, also expressed reservations about the bill. He pointed out that a similar bill, which addresses the regulation of domestic help employment, is already under consideration. He suggested that the NDE’s role could be consolidated with the Ministry of Labour to avoid duplication of efforts.
“This job is already the statutory responsibility of the Federal Ministry of Labour,” Plang noted, proposing that the NDE Act be amended or consolidated to avoid overlap with existing responsibilities.
Despite these concerns, the bill was passed for a second reading after a heated debate. Senate President Godswill Akpabio called for a vote, and the bill was referred to the Committee on Employment, Labour, and Productivity for further review and potential amendments.
As the bill progresses, it remains to be seen whether it will successfully address the concerns of exploitation in the informal sector while ensuring better protection for vulnerable workers in Nigeria.
