The Senate has passed for second reading a bill that seeks to regulate informal employment and authorise the licensing of private job agencies to protect the rights of informal workers.
Titled the Informal Sector Private Employment Agencies (Regulation) Bill 2025, the proposed legislation is sponsored by Senator Mohammed Sani Musa.
The bill aims to formalise employment in the informal sector—which includes domestic workers, apprentices, interns, and other unregulated jobs—while granting regulatory powers to the National Directorate of Employment (NDE).
Leading the debate on the Senate floor, Senator Musa said the bill was designed to address “widespread labour rights violations, abuse, and the lack of regulation in the informal sector,” which he described as a vital but vulnerable part of Nigeria’s workforce.
“Despite its economic importance, the informal sector is plagued by unfair working conditions, low wages, and poor social protections,” he noted.
According to the senator, the bill would empower the NDE to issue licences to private employment agencies and ensure they operate under “standardised, transparent, and fair practices”.
He further explained that licensed agencies would be mandated to maintain a database of informal sector employees, protect their rights, and ensure that recruitment is conducted only by employers engaged in legitimate occupations and under fair conditions.
The bill also proposes that the NDE appoint licensing officers nationwide to monitor compliance and enforce the proposed regulations.
There was a lone voice in opposition, but the bill was, however, passed for second reading and subsequently referred to the Senate Committee on Labour and Employment, which is expected to report back in six weeks.
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