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Nigeria - Compensation & Benefit Legislation

CAPITAL

Abuja

 

CLIMATE

Nigeria’s climate varies; equatorial climate in the south, tropical in center, and arid in the north.

 

LANGUAGES

English (official), Hausa, Yoruba, Igbo (Ibo), and Fulani.

 

LEGAL SYSTEM

Nigeria’s legal system is based on English common law, Islamic Shariah law (only in some northern states), and traditional law.

 

CURRENCY

Nigerian Naira (1 USD = 120.860 NGN as of May 15, 2002).

 

NIGERIA - COST-OF-LIVING

ERI's Relocation Assessor is a recommended source for cost-of-living data.

 

NIGERIA - EMBASSY/CONSULATES

U. S. Embassy at Abuja

7, Mambilla Street (Off Aso Drive)

Maitama District

Abuja Nigeria

Mailing Address: P. O. Box 554, Lagos Nigeria

Telephone: (234)-9-523-0916

Fax: (234)-9-523-0353

Email: usabuja@pd.state.gov

http://usembassy.state.gov/nigeria/

 

Embassy of the Federal Republic of Nigeria at Washington D.C.

1333 16th Street N.W.

Washington D.C. 20036

Telephone: (202) 986-8400

Fax: (202) 775-1385

http://www.nigeriaembassyusa.org

 

NIGERIA - HOLIDAYS

 

NIGERIA - LEAVE

Annual Leave: Minimum two weeks annual leave.

 

Maternity Leave: 12 weeks – 50% of pay (paid by employer).

 

NIGERIA - MINIMUM AGE

The law prohibits employment of children less than 15 years of age in commerce and industry and restricts other child labor to home-based agricultural or domestic work. The law states that children may not be employed in agricultural or domestic work for more than 8 hours per day. The Decree allows the apprenticeship of youths at the age of 13 under specific conditions.

 

(Section 6.d. Acceptable Conditions of Work, Nigeria – Report of Human Rights Practices, 2001, U.S. Department of State.)

 

NIGERIA - MINIMUM REMUNERATION

The law sets a minimum wage, which is reviewed infrequently. Private sector minimum wages increased during 2001 to match the 2000 increase in the public sector wage scale; however, real private sector wages greatly exceed the minimum wage. In 2000 the minimum wage increased to 7,500 naira per month (approximately $75) for federal workers and to 5,000 to 6,500 naira per month ($55 to $65) for state employees.

 

(Section 6.e. Acceptable Conditions of Work, Nigeria – Report of Human Rights Practices, 2001, U.S. Department of State.)

 

NIGERIA - REMUNERATION

ERI's Geographic and Salary Assessors are recommended sources for international remuneration covering 189 countries.

 

NIGERIA - REPORT OF HUMAN RIGHTS PRACTICES (2001, U.S. DEPARTMENT OF STATE)

Section 6 Worker Rights

 

a. The Right of Association

 

The Constitution provides all citizens with the right to assemble freely and associate with other persons, and to form or belong to any trade union or other association for the protection of their interests; however, several statutory restrictions on the right of association and on trade unions remained in effect despite repeals of parts of the military-era antilabor decrees. Only a single central labor federation, the Nigerian Labour Congress (NLC), is permitted by law, and the Government recognizes only 29 trade unions. Trade unions must be registered formally by the Federal Government, and a minimum of 50 workers is required to form a trade union. Nonmanagement senior staff are prevented from joining trade unions, and senior staff associations are denied a seat on the National Labor Advisory Council (NLAC). The International Labor Organization (ILO) Committee of Experts repeatedly has cited several of these restrictions. The Government has not amended the laws, but it has conducted discussions with senior staff associations concerning formal recognition and their accession to the NLAC.

 

Workers, except members of the armed forces and employees designated as essential by the Government, may join trade unions. Essential workers include members of the armed forces and government employees in the police, customs, immigration, prisons, federal mint, central bank, and telecommunications sectors. Employees working in a designated export processing zone (EPZ) may not join a union until 10 years after the start-up of the enterprise (see Section 6.b.).

 

According to figures provided by the NLC, total union membership is approximately 4 million. Less than 10 percent of the total work force is organized. With the exception of a small number of workers engaged in commercial food processing, the agricultural sector, which employs the bulk of the work force, is not organized. The informal sector, and small and medium enterprises, largely remain unorganized.

 

Since 1978 the Government has mandated a single trade union structure with service and industrial unions grouped under the NLC. The trade union movement is composed of two groups consisting of junior and senior staff workers. The single trade union structure and segregation of junior from senior staff were intended to dilute the bargaining strength of workers. Junior staff workers--primarily blue-collar workers--are organized into the 29 industrial unions, which are affiliated with the NLC; 21 associations make up the Senior Staff Associations of Nigeria (SESCAN), which renamed themselves the Trade Union Congress (TUC). The TUC has a claimed membership of approximately 400,000 to 600,000. The TUC, which is composed primarily of white-collar workers, has not been sanctioned officially by the Government, and is prohibited by statute from affiliating with the NLC. The TUC lacks a seat on the NLAC; however, in 1999 SESCAN, now the TUC, began to lay the legal and political groundwork to achieve government recognition, which will require formal action by the National Assembly.

 

In August 2000, the Government decertified the maritime workers union on the grounds that the union had not scheduled internal elections in accordance with its charter's requirement. The Government then issued directives requiring maritime workers to register with specific contracting firms. As a result, this historically powerful union was weakened; however, it continued to challenge the Government's action during the year.

 

Workers have the right to strike; however, certain essential workers are required to provide advance notice of a strike. There were several strikes throughout the year. In May and June, both doctors and university professors went on strike over wages, working conditions, and government investment in infrastructure. Both strikes were resolved following lengthy negotiations with government ministries. During the year, the Government committed itself to budgeting greater funds for development of the nation's health and education infrastructures.

 

During the year, there were smaller strikes over the increased use of contract labor and the lack of indigenous workers in management positions in the oil sector, particularly in the Niger Delta. The National Union of Petroleum and Natural Gas Workers (NUPENG) and its senior staff counterpart Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) particularly are concerned about the increasing use of contract labor and the number of indigenous workers in management positions.

 

In 2000 Lagos public sector workers went on strike to protest the state government's refusal to pay a higher minimum wage. A compromise package offered by the state was accepted by the workers; however, the local union leadership continued to press for more pay at year's end.

 

There are no laws prohibiting retribution against strikers and strike leaders, but strikers who believe that they are victims of unfair retribution may submit their cases to the Industrial Arbitration Panel (IAP), with the approval of the Labor Ministry. The IAP's decisions are binding on parties but may be appealed to the Nigerian Industrial Court (NIC). In practice the decisions of these bodies infrequently carry the force of law. Union representatives describe the arbitration process as cumbersome and time-consuming, and an ineffective deterrent to retribution against strikers. Lagos state government terminated an important local union leader in Lagos, ostensibly for nonperformance, following an extended strike by state government workers.

 

The ILO cited a number of restrictions on freedom of association. These include: Requiring all registered labor unions to affiliate with a single central labor federation (the NLC); establishing a minimum of 50 workers to form a trade union; providing for the possibility of compulsory arbitration; giving the registrar broad powers to supervise trade union accounts; and giving the Government discretionary power to revoke the certification of a trade union due to overriding public interest.

 

The NLC and labor unions are free to affiliate with international bodies; however, prior approval from the Minister is required. The NLC has affiliated with the Organization of African Trade Unions.

 

b. The Right to Organize and Bargain Collectively

 

The labor laws provide for both the right to organize and the right to bargain collectively between management and trade unions. Collective bargaining occurs throughout the public sector and the organized private sector. Complaints of antiunion discrimination may be brought to the Ministry of Labor for mediation, conciliation, and resolution. The Labor Minister may refer unresolved disputes to the IAP and the NIC (see Section 6.a.). Union officials have questioned the effectiveness and independence of the NIC in view of its refusal in previous years to resolve various disputes stemming from the Government's failure to fulfill contract provisions for public sector employees. The NIC was reconstituted during the year with several new members, including a formerly imprisoned trade unionist, Milton Dabibi. Union leaders have criticized the arbitration system's dependence on the Labor Minister's referrals. The Labor Minister made several referrals to the IAP during the year. The IAP and NIC were active following the Government's appointment of new members; however, both suffered from a lack of resources.

 

A worker under a collective bargaining agreement may not participate in a strike unless his union complied with the requirements of the law, which include provisions for mandatory mediation and for referral of the dispute to the Government. The law allows the Government discretion to refer the matter to a labor conciliator, arbitration panel, board of inquiry, or the National Industrial Court. The law forbids any employer from granting a general wage increase to its workers without prior government approval. However, in practice the law does not appear to be enforced effectively; strikes, including in the public sector, are widespread (see Section 6.a.) and private sector wage increases generally are not submitted to the Government for prior approval.

 

The Government retains broad legal authority over labor matters and often intervenes in disputes seen to challenge key political or economic objectives. However, the labor movement is increasingly active on issues affecting workers. During the year, the NLC spoke out on economic reform, fuel price deregulation, privatization, globalization, tariffs, corruption, contract workers, and political issues.

 

The Government directed each state administration to establish its own salary structure based on its ability to pay and in accord with the national minimum wage (see Section 6.e.). During the year, many state governments found it difficult to pay the approximately $60 (6,500 naira) monthly minimum wage to their employees, without massive layoffs or the elimination of "ghost workers" who appear on the employment rolls but not on the job.

 

An EPZ remains under development in Calabar, Cross River State, and a second EPZ is planned for Port Harcourt, Rivers State. Workers and employers in such zones are subject to national labor laws, which provide for a 10-year amnesty on trade unions from the startup of an enterprise. The law provides that there shall be no strikes or lockouts for a period of 10 years following the commencement of operations within a zone. In addition the law allows the Export Processing Zones Authority to handle the resolution of disputes between employers and employees instead of workers' organizations or unions. The 1992 Export Processing Zones Decree has been criticized by the ILO for not allowing any unauthorized person to enter any EPZ.

 

c. Prohibition of Forced or Compulsory Labor

 

The law prohibits forced or compulsory labor; however, trafficking in women and children for purposes of prostitution and forced labor is a problem (see Section 6.f.), and enforcement of the law is not effective.

 

The Government does not prohibit specifically forced and bonded labor by children; however, the law prohibits forced or compulsory labor, a prohibition that extends to children. Employment of persons under 18 years of age generally is prohibited, except for agriculture and domestic work. There were occasional reports of forced child labor, including child slavery rings operating between Nigeria and neighboring countries where children are trafficked to work as domestic servants (see Sections 5 and 6.f.). The reports suggest that Nigerian children are trafficked to other African countries for domestic and agricultural work. Children from neighboring countries also are trafficked to Nigeria for work as domestic servants.

 

d. Status of Child Labor Practices and Minimum Age for Employment

 

The law prohibits employment of children less than 15 years of age in commerce and industry and restricts other child labor to home-based agricultural or domestic work. The law states that children may not be employed in agricultural or domestic work for more than 8 hours per day. The Decree allows the apprenticeship of youths at the age of 13 under specific conditions.

 

Economic hardship leads high numbers of children in commercial activities aimed at enhancing meager family income. The ILO estimates that upward of 12 million children between the ages of 10 and 14 (25 percent of all children) are employed in some capacity. Children frequently are employed as beggars, hawkers, and bus conductors in urban areas. The use of children as domestic servants is common.

 

Private and government initiatives to stem the growing incidence of child employment continue but have been ineffective. UNICEF operates programs that remove young girls from the street hawking trade and relocate them to informal educational settings. UNICEF reported that despite the narrow focus on young girls, the program only began to address the problem during the year. In conjunction with the ILO, the Government formulated a national program of action in support of child rights, survival, protection, development, and participation. In August a formal agreement establishing the program was signed by the ILO and the Labor Ministry; however, the program had not shown any results by year's end due to logistical problems and changing personnel in the Ministry. On October 16 and 17, the Senate Committee on Women's Affairs and Youth held public hearings to investigate child labor, sex trading, and other forms of exploitation to which minors are subjected.

 

The Labor Ministry has an inspections department whose major responsibilities include enforcement of legal provisions relating to conditions of work and protection of workers. However, there are less than 50 inspectors for the entire country, and the Ministry conducts inspections only in the formal business sector, in which the incidence of child labor is not significant.

 

The Government does not specifically prohibit forced and bonded labor by children; however, the law prohibits forced or compulsory labor, a prohibition that extends to children.

 

According to an ILO statement in 1998, and data from UNICEF, the incidence of trafficking in children for prostitution is growing (see Sections 6.c. and 6.f.).

 

e. Acceptable Conditions of Work

 

The law sets a minimum wage, which is reviewed infrequently. Private sector minimum wages increased during the year to match the 2000 increase in the public sector wage scale; however, real private sector wages greatly exceed the minimum wage. In the first half of the year, the national police were not paid for several months.

 

In 2000 the minimum wage increased to $75 (7,500 naira) per month for federal workers and to $55 to $65 (5,000 to 6,500 naira) per month for state employees. Private employers in the formal sector track the public sector wage scale. Along with the many allowances that are paid, the increase appears sufficient to support a decent standard of living. However, many government agencies were slow to pay the new wage scale, and all federal salaries were frozen for 3 months during the summer, pending a census of government employees. Ghost workers (who appear on the employment rolls but not on the job) remained a significant problem that was not addressed fully during the year. The Government increased federal salaries in 2000 without adequate consultations with state governments, whose employees demanded similar wages; as a result, several state governments maintained that they could not afford to pay this wage (see Section 6.b.). The issue of the minimum wage caused several labor disruptions throughout the year, and remains unresolved in several states.

 

The law calls for a 40-hour workweek, 2 to 4 weeks annual leave, and overtime and holiday pay. There is no law prohibiting excessive compulsory overtime. The law also establishes general health and safety provisions, some of which are aimed specifically at young or female workers. It requires that the factory division of the Ministry of Labor and Employment inspect factories for compliance with health and safety standards; however, this agency is underfunded greatly, lacks basic resources and training, and consequently neglects safety oversight of many enterprises, particularly construction sites and other nonfactory work. The Ministry often fails to reimburse inspectors for expenses incurred in traveling to inspection sites, and safety oversight of many enterprises often is neglected. The law requires employers to compensate injured workers and dependent survivors of those killed in industrial accidents. The Labor Ministry, which is charged with enforcement of these laws, has been ineffective in identifying violators. The Government has failed to act on various ILO recommendations since 1991 to update its program on inspection and accident reporting. The Labor Decree does not provide workers with the right to remove themselves from dangerous work situations without loss of employment.

 

f. Trafficking in Persons

 

No law makes trafficking in persons a crime. There is an active and growing market for trafficking in women and children within the region and to Europe. Nigeria is a country of origin, transit, and destination for trafficked persons.

 

The full nature and scope of the trade remained unknown, but immigration and police officials throughout Europe continued to report a steady flow of Nigerian women lured and sold into prostitution in Europe, particularly Italy, the Netherlands, Spain, and the Czech Republic.

 

Draft legislation was under review in the National Assembly that would make trafficking a crime; however, no action was taken on it by year's end. There is government and societal acknowledgement that trafficking in women is a continuing problem, particularly to Europe. Police attempts to stem the trafficking of persons are inadequate and frequently focus on the victims of trafficking, who often are subjected to lengthy detention and public humiliation upon repatriation. Traffickers were identified and punished only in a few cases. Awareness campaigns, often conducted by spouses of prominent politicians or NGO's, only recently have begun to garner widespread attention. There were few statistics available to determine the success of antitrafficking campaigns. The development of a reliable statistical base for assessing the child trafficking problem began under ILO auspices. In November regional trafficking program of the national program of the ILO-International Program for the Elimination of Child Labor (IPEC) began operations after the ILO-IPEC completed an assessment of trafficking in persons in the country.

 

NIGERIA - SOCIAL SECURITY

Social Security Office of International Programs:

 

http://www.ssa.gov/SSA_Home.html

 

NIGERIA - STANDARD WORKWEEK

The law calls for a 40-hour workweek, 2 to 4 weeks annual leave, and overtime and holiday pay. There is no law prohibiting excessive compulsory overtime.

 

(Section 6.e. Acceptable Conditions of Work, Nigeria – Report of Human Rights Practices, 2001, U.S. Department of State.)