By Victor Ahiuma-Young
The Nigeria Employers’ Consultative Association (NECA) has issued a stark warning regarding the precarious state of Nigeria’s economic stability and overall productivity, attributing the decline to the gradual disintegration of the nation’s industrial relations framework. This deterioration is fueled by institutional weaknesses, ineffective enforcement of labour laws, and a widespread neglect of due process by both employers and labour representatives.
In an extensive policy report, NECA’s Director-General and International Labour Organisation (ILO) Governing Body member, Mr. Adewale-Smatt Oyerinde, depicted Nigeria’s industrial relations landscape as “intricate, vulnerable to crises, and alarmingly unstable.”
Oyerinde emphasized, “The industrial relations system in Nigeria is at a pivotal juncture. Despite the existence of mechanisms such as legislation, collective bargaining, and tripartite consultations designed to regulate employer-employee interactions, ongoing issues like weak labour law enforcement, politicization of union activities, and ineffective conflict resolution continue to jeopardize industrial peace and economic output.”
He traced the origins of Nigeria’s industrial relations system to the British tripartite model, which integrates government, employers, and labour unions through a blend of voluntary cooperation and state oversight. However, he highlighted that years of governance challenges, economic volatility, and inconsistent policies have severely undermined this structure.
“Key institutions including the Federal Ministry of Labour and Employment, the Industrial Arbitration Panel, and the National Industrial Court of Nigeria form the pillars of our industrial relations system. Yet, their influence is diminishing as rulings are frequently ignored and due process circumvented, eroding judicial credibility and escalating manageable disputes into widespread crises,” Oyerinde explained.
He further pointed out that economic hardships-exemplified by the removal of fuel subsidies and soaring inflation-have drastically weakened workers’ purchasing power, intensifying tensions during wage negotiations.
“Macroeconomic adjustments, especially subsidy removals, have exerted significant pressure on both employees and employers. Inflation has sharply decreased real income levels, while labour unions have shifted focus from company-specific negotiations to nationwide protests against economic policies, blurring the distinction between industrial relations and political activism,” he noted.
Oyerinde also criticized the “sectoral disarray” marked by frequent strikes in critical sectors such as healthcare, education, and power supply, which threaten the country’s stability.
“Our industrial relations framework is inconsistent-some sectors are heavily regulated, whereas others, particularly the informal and gig economies, remain largely unregulated. This disparity fuels fragmentation, radicalization within unions, and escalating militancy driven by economic distress and deteriorating worker welfare,” he added.
He urged the government to exhibit strong political commitment to enforce compliance with decisions from the Industrial Arbitration Panel and the National Industrial Court.
“Ignoring these rulings fosters disorder and undermines lawful dispute resolution mechanisms. It is imperative to professionalize and adequately finance mediation and conciliation services within the Ministry of Labour to facilitate early and effective conflict resolution,” Oyerinde stressed.
He concluded by advocating for wage negotiations that align with productivity metrics rather than solely inflation rates, recommending that savings from subsidy reforms be channeled into social safety nets covering transportation, healthcare, food, and education to alleviate the burden on workers and their families.