NIGERIA Trends and Developments Contributed by: Adedapo Tunde-Olowu, Ugonna Ogbuagu, Adejumoke Ademola and Miebi Abere, ǼLEX
If enacted, it will expand the protective scope of Nigerian labour law to millions of informal workers in domestic service, artisanal trades, internships and casual labour, many of whom currently operate without contracts, dispute resolution mechanisms, or access to social security schemes. The National Directorate of Employment (NDE) would have over - sight and enforcement functions upon enactment. The Bill passed second reading in May 2025 and is currently under committee review. The Revised National Employment Policy 2025 The Revised National Employment Policy 2025 (the “NEP 2025”) presents a strategic reorientation of Nige - ria’s labour agenda and signals a decisive shift from reactive labour management to anticipatory workforce planning. The NEP 2025 focuses on digital economy integration, green industry growth and remote work. It looks to address Nigeria’s widening skills gap through targeted vocational training, incentives for technology start-ups, and infrastructure investment to support online and platform-based enterprises. The NEP 2025 also acknowledges remote work as a legitimate mode of employment, with implications for taxation, social security and occupational safety in decentralised work environments. The NEP 2025 will become significant, as it paves the way for future statutory definitions and protections tailored to geographically flexible labour relationships. Pension reforms and compliance The National Pension Commission (PenCom) issued two major directives in 2025 that jointly reshape the administration of retirement benefits and the compli - ance obligations of businesses engaging with pen - sion-regulated entities. Removal of PenCom pre-approval for retirement benefits On 12 March 2025, PenCom reformed the approval and payment process under the Contributory Pen - sion Scheme (CPS). Previously, pension fund admin - istrators (PFAs) were required to submit all retirement benefit applications to PenCom for approval before instructing pension fund custodians (PFCs) to make payments.
Since 1 June 2025, PFAs have independently pro - cessed and approved programmed withdrawals, annuities, voluntary contributions and other entitle - ments, and the PFCs are to disburse within 24 hours of receiving instructions to do so. PenCom’s approval remains necessary for depleted RSA cases and death benefits, but PFAs now bear direct responsibility for verifying compliance with PRA requirements before payment. This reform accelerates benefit delivery and reduces the bureaucratic lag in the pension system. Pension clearance certificate requirement for LPFO transactions On 22 May 2025, PenCom issued a directive requiring all licensed pension fund operators (LPFOs) to ensure that vendors, service providers and counterparties are compliant with the Pension Reform Act 2014, through the presentation of a valid Pension Clearance Certifi - cate (PCC). By this directive, LPFOs are authorised to conduct business only with entities that can produce a PCC, making it the principal proof of compliance for pen - sion remittance obligations. The requirement applies to operational contracts and financial transactions, establishing the PCC as a foundational condition for engagement across public and private sectors. A six-month transition period was provided before full enforcement, which allows organisations time to align internal processes. By embedding pension compliance into commercial eligibility and routine corporate governance, the direc - tive reinforces accountability, strengthens statutory adherence, and elevates the role of social security obligations within business operations. Judicial Trends Beyond legislative and policy reforms, the National Industrial Court of Nigeria (NICN) has been actively shaping the direction of Nigerian employment law through recent jurisprudence. These decisions are not only relevant domestically but offer valuable insights for multinational employers, cross-border counsel and investors who must navigate Nigeria’s rapidly evolv - ing labour landscape. The following notable cases
411 CHAMBERS.COM
Powered by FlippingBook