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

(To be linked)

• ECOWAS
• CEN-SAD

Nigeria has one of the largest informal economies in Africa, estimated to account for over 60% of employment. Informal work spans street vending, transport, domestic work, agriculture, and small-scale 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 the development of Decent Work Country Programmes aligned with national labour and employment priorities.

Workers’ rights are primarily governed by:

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

Key protections include:

• Right to dignity and freedom from forced labour
• Protection of workers’ welfare as a constitutional objective (s14(2)(b))
• Freedom of movement (s41), relevant to informal economic activity

However:

• Labour protections are largely limited to formal employment relationships
• Informal workers fall outside effective enforcement mechanisms
• Social protection coverage remains fragmented and contributory-based

• Pension Reform Act (2014) – contributory pension scheme
• National Social Protection Policy (2017) – framework for extending protection
• National Tax Policy (2017) – recognises informal/self-employed workers

Overall approach:

Nigeria reflects a fragmented and sectorally differentiated regulatory model, with no unified legal framework governing informal work.

Labour Act (Cap L1, LFN 2004)

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

Key features:

• Domestic workers often treated as informal or unregulated workers
• Weak enforcement of labour standards in private households

Assessment:

“Marginal inclusion model”

- ✔ Partial legal coverage - ✖ Weak enforcement - ✖ High vulnerability

Street vending is regulated primarily at the state level.

Constitution of Nigeria (1999)

• Section 4 – concurrent legislative competence
• Section 14(2)(b) – welfare obligation
• Section 41 – freedom of movement

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

• Criminalises street trading
• Penalties include fines and imprisonment
• Strictly enforced since 2016

NESREA Act

• Regulates environmental conditions affecting vendors

Assessment:

“Criminalisation model”

- ✔ Strong enforcement - ✖ Exclusionary approach - ✖ Conflict with livelihood rights

Waste reclaiming is not governed by a dedicated legal framework.

Environmental regulations (including NESREA frameworks):

• Indirectly regulate waste management activities

Assessment:

“Regulatory invisibility model”

- ✖ No sector-specific protection - ✖ High occupational risk - ✖ Informal and unregulated

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

• Provide general labour and dispute resolution frameworks

Assessment:

“Indirect regulation model”

- ✔ General legal coverage - ✖ No recognition of home-based work - ✖ Informal workers excluded

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

• Recognises self-employed workers
• No classification of gig workers

Assessment:

“Unregulated platform economy model”

- ✔ Tax inclusion - ✖ No labour protections - ✖ Workers treated as independent contractors

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

Assessment:

“Agriculture policy-led model”

- ✔ Strong policy framework - ✔ Land regulation - ✖ Weak enforcement - ✖ High rural informality

Nigerian Minerals and Mining Act (2007)

• Requires:
  • Formation of cooperatives
  • Licensing of artisanal miners

• Provides:
  • Technical support
  • Training and capacity building

—

Mining Regulations (2011)

• Establish health and safety standards
• Encourage formalisation

—

Environmental Mining Regulations (2009)

• Provide safety and environmental protections

—

Assessment:

“Structured formalisation model”

- ✔ Strong legal framework - ✔ Cooperative-based approach - ✔ Formalisation pathways - ✖ Implementation gaps

Lagos State Transport Sector Reform Law (2018)

• Regulates informal transport operators

Road Traffic Act (1990)

• Governs road safety and operations

Assessment:

“Operational regulation model”

- ✔ Strong regulatory control - ✔ Safety focus - ✖ No labour protections

National frameworks:

• Customs and Excise Management Act (CEMA)
• Export Incentives Act
• Central Bank Foreign Exchange Regulations
• Immigration Act (2015)
• SON Act
• NAFDAC Act

Regional frameworks:

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

Assessment:

“Trade facilitation model”

- ✔ Strong regional integration - ✔ Trade mobility frameworks - ✖ Informal workers not formally recognised

Nigeria demonstrates a:

“Sectorally differentiated regulatory model of informality”

Key characteristics:

- ✔ Strong regulation in extractive sectors (mining) - ✔ Criminalisation in urban informal sectors (street vending) - ✔ Policy-led approaches in agriculture - ✔ Regulatory gaps in gig work and home work

Core insight:

Informal work in Nigeria is not governed by a single regulatory logic, but by multiple, often contradictory frameworks across sectors.

• Constitution of Nigeria (1999)
• Labour Act (Cap L1, LFN 2004)
• Lagos State Street Trading Law (2003)
• Nigerian Minerals and Mining Act (2007)
• Mining Regulations (2011)
• National Social Protection Policy (2017)
• Pension Reform Act (2014)
• ECOWAS Protocols
• AfCFTA Agreement