The Nigerian Senate has passed for its second reading a bill aimed at regulating and formalizing employment within the informal sector by requiring the licensing of private job agencies.
Titled the ‘Informal Sector Private Employment Agencies (Regulation) Bill, 2025’, this proposed legislation is sponsored by Senator Sani Musa, who represents Niger east.
The bill suggests empowering the National Directorate of Employment (NDE) to issue licenses to and oversee private employment agencies. These agencies would be responsible for registering workers, ensuring fair recruitment practices, and protecting employees’ rights and benefits.
Leading the debate on the bill, Senator Musa highlighted that informal workers—including domestic staff, apprentices, and interns—remain largely unprotected and vulnerable. This is despite the fact that they constitute over 65 percent of the Nigerian workforce.
“The informal sector is usually regarded as the residual labour market where labour is highly heterogeneous and sources of income are not largely wage dependent, working time is discretionary and some jobs are not paid for at all,” he explained.
“Operations in the sector are usually in small scale; production technique is labour intensive and ownership is usually private. In most cases, the workers in this sector are family members, apprentices and few paid employees.” These statements underscore the varied and often informal nature of work in this sector.
He pointed out that the sector is frequently marred by labor rights violations, poor wages, and non-compliance with International Labour Organisation (ILO) conventions. This persists even though the informal sector serves as a vital economic lifeline for millions of Nigerians.
“The informal sector of the Nigerian economy show evidence of violation of employees’ rights and non-implementation of labour regulations,” he asserted.
“This bill is designed to correct the decent work deficit by promoting fair treatment, decent remuneration, and protection of workers’ rights in line with ILO conventions to which Nigeria is a signatory.” This explains the bill’s intent to align domestic practices with international labor standards.
Senator Musa further stated that the bill would establish a framework enabling the NDE to grant licenses only to agencies that meet specific criteria: financial accountability, legal compliance, and proper documentation.
“This bill empowers the National Directorate of Employment to issue licences and monitor the activities of Employment Agencies throughout the country.” This clarifies the NDE’s expanded role.
He added that licensing officers would be deployed nationwide to enforce compliance and ensure transparency in these agencies’ operations.
Contributing to the debate, Senator Adams Oshiomhole, representing Edo north, expressed concerns about the potential for abuse within the licensing system and the outsourcing of government responsibilities.
“We cannot create multiple centres of fraud under the guise of private sector participation,” he warned.
“It’s already happening — security staff earn as little as N40,000 while appearing to work for the government. This bill could make that kind of abuse even worse.” This highlights existing issues and potential exacerbations.
Senator Diket Plang, chairman of the Senate Committee on Labour and Productivity, reminded the chamber that a similar bill focusing on domestic workers had already undergone a public hearing.
“This job is already the statutory responsibility of the federal ministry of labour. We can consolidate the two bills,” Plang suggested, hinting at a more efficient legislative approach.
Senator Osita Izunaso, representing Imo west, also urged the harmonization of this bill with existing legislation to prevent duplication and potential conflicts.
Subsequently, the Senate referred the bill to the Committee on Employment, Labour and Productivity. The committee is expected to submit its report on the bill within six weeks.