The Nigerian Senate has taken a significant step toward formalising the nation’s sprawling informal workforce by passing for second reading a bill aimed at regulating informal employment and licensing private job agencies.
Known as the Informal Sector Private Employment Agencies (Regulation) Bill 2025, the proposed legislation is sponsored by Senator Mohammed Sani Musa and seeks to empower the National Directorate of Employment (NDE) with oversight functions in the largely unregulated informal job market.
Leading the debate, Senator Musa described the informal sector — which includes domestic workers, artisans, apprentices, and interns — as economically vital yet plagued by exploitation and the absence of legal protections.
“Despite its critical role in our economy, the informal sector suffers from unfair wages, hazardous conditions, and no social security. This bill seeks to change that,” Musa said.
The proposed law will mandate the NDE to license private employment agencies, ensuring they operate transparently and fairly.
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These agencies will be required to maintain detailed employee databases, monitor employers’ conduct, and enforce labour standards.
In addition, the NDE would appoint licensing officers across the country to supervise implementation and compliance with the regulations.
Although there was a solitary dissenting voice during the debate, the bill sailed through its second reading and has been forwarded to the Senate Committee on Labour and Employment for further review.
The committee is expected to submit its report within six weeks.