Region: Western Africa Regional Economic Communities (REC): ECOWAS · CEN-SAD

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• ECOWAS
• CEN-SAD

Nigeria has one of the largest informal economies in Africa, accounting for over 60% of employment.

Informal work spans:

• Street vending
• Transport services
• Domestic work
• Agriculture
• Artisanal mining

The informal economy plays a central role in livelihoods but remains largely outside formal labour regulation and social protection systems.

Nigeria operates a federal legal system combining statutory law, customary law, and Islamic law in certain regions.

Nigeria has been a member of the International Labour Organization (ILO) since 1960 and participates in the Decent Work Agenda, including Decent Work Country Programme initiatives.

Workers’ rights are governed by:

• Constitution of the Federal Republic of Nigeria (1999)
• Labour Act (Cap L1, LFN 2004)

Key protections include:

• Protection of workers’ welfare (Section 14(2)(b))
• Freedom of movement (Section 41)
• General labour standards for employment relationships

However:

• Labour protections primarily apply to the formal sector
• Informal workers have limited effective protection
• Social protection coverage remains fragmented

• Pension Reform Act (2014)
• National Social Protection Policy (2017)
• National Tax Policy (2017)

These frameworks aim to extend coverage but remain largely contributory and limited in reach.

Labour Act (Cap L1, LFN 2004)

• Applies to employment relationships
• Limited explicit recognition of domestic workers

Domestic workers are often treated as informal workers with limited enforcement of labour protections.

Street vending is regulated primarily at the state level.

Constitution of Nigeria (1999)

• Section 4 – legislative competence shared between federal and state levels

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Lagos State Street Trading and Illegal Market Prohibition Law (2003)

• Prohibits street trading and illegal markets
• Provides penalties including fines and imprisonment
• Strictly enforced since 2016

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NESREA Act

• Regulates environmental standards affecting public trading spaces

Waste reclaiming is not governed by a dedicated legal framework.

• Regulated indirectly through environmental laws
• Workers operate largely in the informal economy

Labour Act (2004) National Industrial Court Act (2006) Pension Reform Act (2014)

• Provide general labour and dispute resolution frameworks
• No specific legal recognition of home-based work

Labour Act (2004) Pension Reform Act (2014) National Tax Policy (2017)

• Recognises self-employed workers
• No clear classification of platform workers

Labour Act (2004) Land Use Act (1978) NALDA Act National Agricultural Seeds Act (2019) National Social Protection Policy (2017)

• Regulates agricultural labour and land access
• Supports agricultural development

Nigerian Minerals and Mining Act (2007)

• Requires formation of mining cooperatives
• Provides licensing for artisanal miners
• Offers technical and capacity-building support

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Mining Regulations (2011)

• Establish health and safety standards
• Encourage formalisation of small-scale mining

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Environmental Mining Regulations (2009)

• Provide environmental and safety protections

Lagos State Transport Sector Reform Law (2018)

• Regulates informal transport operators

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Road Traffic Act (1990)

• Governs road use and safety

National frameworks:

• Customs and Excise Management Act (CEMA)
• Export (Incentives and Miscellaneous Provisions) Act
• Central Bank Foreign Exchange Regulations
• Nigerian Immigration Act (2015)
• Standards Organisation of Nigeria (SON) Act
• NAFDAC Act

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Regional frameworks:

• ECOWAS Free Movement Protocol
• ECOWAS Trade Liberalisation Scheme (ETLS)
• African Continental Free Trade Area (AfCFTA)

• IIAG – Nigeria: https://iiag.online/locations/ng.html
• Constitution of Nigeria (1999)
• Labour Act (Cap L1, LFN 2004)
• Nigerian Minerals and Mining Act (2007)
• National Social Protection Policy (2017)
• ECOWAS Frameworks
• AfCFTA Agreement