Investor Presentaiton
The Country and its
institutions
3.1
Legislation
Business Organisation
and Regulation
Labour and Social
Security Regulations
The Nigerian Financial Tax System
Services Industry
Foreign Exchange
Transactions
Investment in Nigeria
Accounting and
Auditing Requirements
Importation of Goods
Exportation of Goods
COVID-19 Economic
and Fiscal Measures
3.2
Labour Unions
Labour matters are overseen by the Ministry of Labour and Employment. Labour
relations are regulated by the following pieces of Federal legislation:
.
Employee's Compensation Act, 201026;
•
The Factories Act, Cap F1, LFN, 2004;
• Industrial Training Fund (ITF) Act, Cap 19, LFN, 2004 [as amended by the ITF
(Amendment) Act, 2011];
Labour Act, Cap L1, LFN, 2004;
•
National Health Insurance Scheme (NHIS) Act, Cap N42, LFN, 2004;
•
National Salaries, Incomes and Wages Commission Act Cap N72, LFN, 2004;
• Pension Reform Act, 2014;
. Trade Disputes Act, Cap T8, LFN, 2004;
Trade Disputes (Essential Services) Act, Cap T9, LFN, 2004;
•
Trade Unions Act, Cap T14, LFN, 2004;
•
Trade Unions (International Affiliation) Act, Cap T15, LFN, 2004; and
Immigration Act, 201527.
3.3
3.4
The Trade Unions Act (TUA) Cap T14, LFN, 2004, requires a trade union to be
registered before it commences operation. The minimum number of members of
a trade union of workers is 50, except as authorised by the Minister of Labour and
Employment. The Act prohibits any staff within the management structure of any
organisation from being a member of, or holding office in, a trade union.
Under the TUA, membership of trade unions is strictly voluntary. Consequently,
an employee is entitled to refrain from joining a trade union and is guaranteed
protection from victimisation for refusing to join the union.
The Nigerian Labour Congress (NLC) was founded in 1975, as an umbrella
organisation for trade unions, to add impetus to trade unionism in Nigeria. It was
the sole central trade union organisation in Nigeria until the 1990s when the Trade
Union Congress (TUC) was registered.
The Trade Unions (International Affiliation) Act, Cap T15, LFN, 2004 regulates the
capacity of the Nigeria Labour Congress and other trade unions to affiliate with
related bodies outside Nigeria.
Employers' Organisations
The Nigeria Employers' Consultative Association (NECA) serves the interest of its
members (employers of labour) in labour and industrial matters. It represents the
members' interests in dealings with Government agencies and advises members
on industrial matters affecting them. Apart from the NECA, there are other sector-
based employer organisations, such as Association of Food, Beverages and Tobacco
Employers.
Trade Disputes
The Trade Disputes Act (TDA), Cap T8, LFN, 2004, requires trade disputes to be
settled first, at the company level, then by the Ministry, after which resolution of
disputes lies with the Industrial Arbitration Panel and, lastly, the National Industrial
Court (NIC), whose decision is final. The TDA confers exclusive jurisdiction over
intra-and inter-union disputes on the NIC and limits appeals from its decisions to the
Court of Appeal to only matters affecting fundamental human rights.
The Trade Disputes (Essential Services) Act, Cap T9, LFN, 2004, makes it an offence
for anyone to engage in acts calculated to disrupt the economy or obstruct the
smooth running of any essential services, or for anyone to wilfully fail to comply
with the procedure laid down in the Trade Disputes Act which, among other things,
prohibits strike actions or lockouts whilst trade disputes are being resolved.
26 The Employee's Compensation Act repealed the Workmen's Compensation Act, Cap W6, LFN, 2004
27 Immigration Regulations 2017 was released to provide a legal framework for the effective implementa-
tion of the Immigration Act, 2015 and consolidate existing Immigration Regulations in Nigeria.
KPMG
Investment in Nigeria Guide - 8th Edition
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