Human Resource Regulatory Frameworks in Nigeria – by Frank Ofili

What are the legal frameworks within which a human resource practitioner must operate in Nigeria?

Every HR professional in Nigeria must know this, at least much of it. It is part of what makes you a professional. But if, per chance, you do not, then you will be groping in the dark.

In Nigeria, Human Resource (HR) practitioners must operate within a variety of constitutional, statutory, regulatory, and industry-specific legal frameworks. These laws govern employment relationships, labour standards, workplace safety, employee benefits, and dispute resolution. Below is a comprehensive list of the key legal frameworks:

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

Provides fundamental rights relevant to employment, including:

• Freedom from discrimination
• Right to fair hearing
• Right to dignity of labour
• Right to lawful association (e.g., unions)

2. Labour Act (Cap L1 LFN 2004)

The primary legislation governing employment contracts for workers (mainly junior and manual workers). It covers:

• Employment terms and conditions
• Notice periods
• Contract termination
• Wage protection
• Working hours and leave
• Child and young person employment
• Employer responsibilities

3. Trade Unions Act (Cap T14 LFN 2004)

Regulates:

• Formation and registration of trade unions
• Rights and obligations of unions
• Collective bargaining procedures

4. Trade Disputes Act (Cap T8 LFN 2004)

Provides the legal framework for:

• Handling industrial disputes
• Mediation, conciliation, and arbitration
• Role of the Industrial Arbitration Panel (IAP)
• Referral to the National Industrial Court of Nigeria (NICN)

5. National Industrial Court Act (2006)

Establishes the NICN as the primary court for labour and employment matters, including:

• Termination and unfair dismissal claims
• Discrimination cases
• Union disputes
• Employment contract enforcement

6. Employees’ Compensation Act (ECA) 2010

Administered by the Nigeria Social Insurance Trust Fund (NSITF). Covers:

• Workplace injuries and diseases
• Compensation for disability or death
• Employer obligations for social insurance contributions

7. Pension Reform Act (PRA) 2014

Administered by PenCom. Requires HR practitioners to ensure:

• Employees’ pension enrollment
• Employer/employee monthly contributions
• Proper remittance into RSA (Retirement Savings Account)
• Group life insurance of at least 3× annual salary

8. Personal Income Tax Act (PITA)

Regulates Pay-As-You-Earn (PAYE) for employees. HR must ensure:

• Correct payroll tax deductions
• Remittances to state Internal Revenue Services

9. National Minimum Wage Act (2019)

Prescribes the minimum wage payable to workers across Nigeria. HR must ensure compliance by all employers.

10. Factories Act (Cap F1 LFN 2004)

Applies to workplaces designated as factories. It governs:

• Occupational health and safety (OHS)
• Workplace hazards control
• Accident reporting
• Worker welfare facilities

11. Industrial Training Fund (ITF) Act

Requires companies with 5+ employees (or annual turnover ≥ ₦50m) to:

• Pay 1% of annual payroll to ITF
• Provide manpower training
• Comply with HR development reporting obligations

12. Immigration Act (2015) & Expatriate Quota Regulations

For companies employing foreign nationals:

• Expatriate quota requirements
• CERPAC documentation
• Succession planning and local understudies

13. Nigeria Data Protection Act (NDPA) 2023

Critical for HR because of handling employee data. It covers:

• Lawful processing of personal and sensitive data
• Employee privacy rights
• Cross-border data transfer restrictions
• Mandatory data protection measures

14. Federal Character Commission Act

Requires equitable representation in federal institutions. Relevant for HR in public sector recruitment and promotions.

15. Public Service Rules (for public sector HR)

This regulates:

• Recruitment
• Discipline
• Appointments
• Promotions
• Conditions of service for civil servants

16. Company’s Internal Policies and Collective Bargaining Agreements (CBA)

This includes:

• Employee handbook
• Ethics and disciplinary procedures
• Collective agreements with unions
• Internal HR and compliance guidelines

Summary: Key HR Compliance Areas in Nigeria

HR practitioners must comply with laws covering:
✔ Recruitment & contracts
✔ Wages & compensation
✔ Health & safety
✔ Social insurance & pensions
✔ Payroll taxes
✔ Industrial relations
✔ Data protection
✔ Workplace discipline
✔ Termination procedures

The Place of International Labour Organizations (ILO) Conventions in Nigeria

You may be wondering the place of ILO Conventions in Nigeria; whether a human resource practitioner in Nigeria must comply with them.

The short answer is that ILO conventions are NOT automatically binding on individual HR practitioners.

However, they become binding in Nigeria ONLY if:

1. Nigeria has ratified the convention, and
2. The National Assembly domesticates it into national law (Section 12 of the Nigerian Constitution).

This means:

• If an ILO convention has not been domesticated, it is not legally enforceable in Nigerian courts.
• But it still serves as international best practice and may influence court decisions (especially the National Industrial Court).

So, must HR practitioners follow them?

Legally, no — unless the ILO convention has been incorporated into Nigerian law.

But professionally and ideally? Yes, because:

• ILO conventions form the basis of modern HR standards.
• The National Industrial Court of Nigeria (NICN) often uses them as persuasive authority when interpreting labour rights.
• Many Nigerian labour laws are drawn from ILO principles (e.g., freedom of association, child labour, workplace safety).

In practice, even though not all ILO conventions are “binding,” HR managers in Nigeria are expected to align with them when designing policies, handling disputes, and drafting employment contracts.

Why ILO Conventions Matter for HR in Nigeria

1. Influence on Nigerian Labour Law

Nigeria’s Labour Act, Trade Unions Act, Factories Act, and ECA all draw heavily on ILO standards.

2. NICN’s Use of International Labour Standards

The National Industrial Court has the power to consider:

• ILO treaties
• International best practices
• Global labour standards
  even when not domesticated.

This often puts HR departments under indirect pressure to comply.

3. Employer Reputation and Compliance

International NGOs and multinational companies require HR teams to follow ILO standards for:

• Corporate social responsibility
• International audits
• Environmental, Social and Governance compliance

Key ILO Conventions Nigeria Has Ratified

Nigeria has ratified over 40 ILO conventions. The most important “Core Labour Standards” under the ILO Declaration include:

Fundamental Conventions

✔ Freedom of Association Convention, 1948 (No. 87)
✔ Right to Organise and Collective Bargaining, 1949 (No. 98)
✔ Abolition of Forced Labour, 1957 (No. 105)
✔ Minimum Age Convention, 1973 (No. 138)
✔ Worst Forms of Child Labour Convention, 1999 (No. 182)
✔ Equal Remuneration Convention, 1951 (No. 100)
✔ Discrimination (Employment) Convention, 1958 (No. 111)

These are some of the most relevant for HR practice.

Key ILO Conventions Nigeria Has NOT Fully Implemented

Some conventions are ratified but not domesticated, meaning HR practitioners may consider them as best practice only.

Examples include:

• Workers with Family Responsibilities (C156)
• Occupational Safety and Health Convention (C155)
• Social Security Minimum Standards (C102)

Practical Guidance for HR in Nigeria

1. Follow Nigerian Law first

This is the mandatory layer (Labour Act, ECA, PRA, etc.).

2. Use ILO Conventions as supplementary standards

Especially when company policies are being drafted.

3. Be aware of the National Industrical Court of Nigeria’s (NICN) reliance on ILO norms

Even if not fully domesticated, NICN uses ILO conventions to interpret labour rights.

4. Multinational Companies:

If you work in one, you must follow both Nigerian labour law and ILO standards.

In conclusion, ILO conventions do not automatically bind HR practitioners in Nigeria unless the conventions have been ratified and domesticated into national legislation. However, they serve as authoritative international labour standards and are regularly used by the National Industrial Court and HR professionals to guide policies, workplace relations, and best practices. Therefore, while not always legally compulsory, adherence to ILO conventions is strongly recommended for ethical, professional, and compliance reasons.