LABOUR UNIONISM AND NATIONAL DEVELOPMENT IN NIGERIA : A LITERATURE REVIEW

Contact IJRGP Copyright & Licensing Page 1 of 18 This article is licensed under a Creative Commons Attribution 4.0 International License. Research Article LABOUR UNIONISM AND NATIONAL DEVELOPMENT IN NIGERIA : A LITERATURE REVIEW Edime YUNUSA1*, Timothy Abayomi ATOYEBI, Ph.D1., and Cosmas VICTOR1 1Department of Sociology, Faculty of Social Sciences, Prince Abubakar Audu University, Anyigba, Kogi State - Nigeria Abstract Labour unions remain pivotal actors in shaping socio-economic outcomes across the globe, particularly in developing nations where they often serve as the principal vehicles for collective bargaining and social justice. In Nigeria, the historical and contemporary significance of labour unionism cannot be overstated, yet its contribution to national development remains contested and uneven. This paper interrogates the nexus between labour unionism and national development in Nigeria, with three key objectives: to examine the influence of labour unionism on economic and social development outcomes, to identify the challenges that hinder unions from contributing effectively to national development, and to analyse institutional and policy measures that strengthen or weaken the positive role of labour unions. Guided by the pluralist theory of industrial relations, which views employers, employees, and the state as distinct but legitimate interest groups whose conflicts can be managed through institutionalised mechanisms, the paper adopted a secondary method of data collection from peer-reviewed journal articles, government reports among internet documented materials. The paper showed that while labour unions in Nigeria have been instrumental in wage increases, improved working conditions, and policy advocacy, their efforts are frequently undermined by weak institutional capacity, inconsistent government compliance with agreements, internal governance challenges, and adversarial labour–state relations. These dynamics produce mixed effects, with unions sometimes acting as catalysts for development and at other times as sources of disruption. The paper concluded that the developmental potential of Nigerian labour unionism can be realised only through reforms International Journal of Multidisciplinary Department Published by: International Journal & Research Global Publisher ISSN: XXXX-XXXX Article History: Received: 15 September 2025 | Accepted: 29 September 2025 | Published: 3 October 2025 ** Related declarations are provided in the final section of this article. Contact IJRGP Copyright & Licensing Page 2 of 18 This article is licensed under a Creative Commons Attribution 4.0 International License. that institutionalise tripartite dialogue, strengthen union accountability, and ensure consistent enforcement of labour policies, transforming unions into reliable partners in achieving national development goals. It however recommended among others that government and union leaders should establish structured mechanisms that link wage negotiations and industrial agreements directly to measurable development indicators such as productivity growth, poverty reduction, and public service delivery outcomes. KEYWORDS: Labour Unionism, National development, Nigeria, Pluralist theory, Industrial Relation, Wage Policy, Institutional Capacity, Policy Enforcement, Collective Bargaining, Workers Welfare Introduction Labour unionism has long been a global phenomenon through which workers aggregate power to negotiate for better wages, safer working conditions, social protection, and a more equitable share in economic gains (International Labour Organization (ILO, 2025). In developed economies, strong union presence historically contributed to the rise of the welfare state, collective bargaining frameworks, and more balanced labour–capital relations. In Africa, trade union movements developed partly in response to the exploitative labour practices of colonial regimes and emerging capitalist enterprises. In many African countries, unions became key actors in promoting labour rights, influencing social policy, and often intervening in nationalist and postcolonial struggles. For example, studies trace how African labour unions have sometimes aligned with or resisted political regimes, shaping broader social and institutional development (Obono, 2004; see also the overview in Trade Union Movements in Nigeria). In Nigeria specifically, unionism has colonial roots but also deeper antecedents: Olusoji et al., (2012) argue that craft associations existed before formal colonial trade unions, and that colonial unionism was later formalised under British volunteerist models. During the colonial period, labour unrest was already visible in Nigeria. A prominent early example is the 1897 Lagos strike of public works employees, a protest against proposed wage cuts and longer work hours, which ended in concessions by colonial authorities. More systematically, the 1945 nationwide general strike mobilised an estimated 200,000 workers across multiple sectors, demanding better wages in a context of wartime inflation and declining living standards. These episodes signalled that labour activism would remain a persistent force in Nigeria’s social and political life. After independence, trade unions in Nigeria such as the Nigeria Labour Congress (NLC) and sectoral unions (e.g. university staff unions, healthcare unions) have played active roles in wage negotiations, social welfare advocacy, industrial action, and influencing labour Contact IJRGP Copyright & Licensing Page 3 of 18 This article is licensed under a Creative Commons Attribution 4.0 International License. legislation (Bamidele et al., 2019; Labourism and Good Governance in a Democratic Society). Over time, however, Nigeria’s unions have confronted challenges: internal leadership crises, politicisation, weak legal enforcement, irregular strike patterns, declining membership in some sectors, and pressures from globalization and labour casualization (Solaja, 2015; Ibrahim, 2013). More recently, the 2024 general strike by NLC and TUC over minimum wage demands highlighted both the enduring strength and tensions in labour–state relations. Against this backdrop, the question arises: can labour unionism in Nigeria be more than an arena of conflict over wages? Can it be a constructive force for national development? National development here refers not just to economic growth, but to human development outcomes, institutional capacity, service delivery, social equity, and stability. To answer this, it is necessary to examine how union activities have affected development outcomes, what impedes or moderates their influence, and which institutional mechanisms might enhance their positive role. Statement of the Problem From the global to the Nigerian context, labour unions have been influential actors in shaping worker rights and socio-economic policies. In Nigeria, they have been central in contesting wage injustice, advocating social welfare, and influencing labour laws since colonial times (Olusoji et al., 2012; Obono, 2004). Yet the record of their impact on national development remains ambiguous: while unions achieve occasional gains in worker welfare and pressure governments, their influence on broader development indicators, such as poverty reduction, institutional capacity, service delivery, and sustained productivity remains vague. Several issues underscore this ambiguity. Firstly, many studies emphasise strikes, wage disputes, or internal union challenges, but seldom connect those to macro or sectoral development outcomes in a systemic way. Secondly, internal union problems (leadership, factionalism, weak democracy) and external constraints (weak legal enforcement, political interference, economic volatility) are often discussed in isolation, without exploring how they jointly weaken union contributions to development. Thirdly, institutional and policy reforms (collective bargaining, tripartite dialogue, legal enforcement) are often proposed but rarely critically assessed in terms of measurable development outcomes. Finally, Nigeria’s changing labour environment such as rising informal employment, labour casualization, globalisation pressures among others raises the question on whether older frameworks of unionism remain effective. Hence, the problem addressed in this paper is: What is the contribution of labour unionism in Nigeria to national development; what obstacles diminish that contribution; and what institutional or policy interventions can enhance its positive impact? The literature to date is rich in descriptive and sectoral case studies but lacks a cohesive, critical synthesis linking unionism and national development outcomes under varying institutional contexts. This gap motivates a structured literature review guided by clear objectives. Contact IJRGP Copyright & Licensing Page 4 of 18 This article is licensed under a Creative Commons Attribution 4.0 International License. Aim and Objectives The aim of this paper was to critically review literature on labour unionism in Nigeria, investigating its contributions to national development. The specific objectives includes: 1. To assess how labour unionism has influenced economic and social development outcomes in Nigeria. 2. To examine the internal and external challenges faced by labour unions in Nigeria that hinder their capacity to contribute to national development. 3. To evaluate institutional and policy measures (or mechanisms of union‐government/employer interaction) that strengthen or weaken the positive role of labour unionism in national development. Methodology This paper adopts a secondary method of data collection, relying exclusively on existing literature. It synthesises information from peer-reviewed journal articles, academic theses and dissertations, government publications, and other credible scholarly sources. The review focused on materials published between 2013 and 2024 to ensure the inclusion of recent and relevant evidence. Literature Review The review of relevant and related literature for this paper was done following the aim and objectives under the following subheadings: Conceptual Review Key concepts in the paper were reviewed as follows : Labour Unionism Labour unionism refers to organised associations of workers formed to protect their interests, especially in relation to employment conditions such as wages, working hours, occupational safety, benefits, welfare, and working conditions. Key features include collective bargaining, strike/industrial action, representation in negotiations, mobilisation of members, and political engagement. Union strength depends on membership density, leadership legitimacy, legal environment, internal democracy, financial sufficiency, and relationships with employers and government (Atiye & Itu, 2024). National Development National development in this context refers to growth and improvement in economic metrics (GDP growth, productivity, employment, income levels), social welfare (health, education, poverty reduction, social security), institutional development (governance, rule of law, regulatory frameworks), and overall human development. National development also includes Contact IJRGP Copyright & Licensing Page 5 of 18 This article is licensed under a Creative Commons Attribution 4.0 International License. industrial harmony, stability, public service delivery, and sustainable development (Adeniyi et al., 2024). Influence of Labour Unionism on Economic and Social Development Outcomes in Nigeria The influence of labour unionism on Nigeria’s economic and social development is neither uniformly positive nor wholly negative; rather, the literature shows a conditional relationship in which gains for workers and society depend on the institutional context, macroeconomic environment and the strategies unions adopt. Empirical studies by Edet et al. (2024) demonstrate that organised labour has secured concrete improvements in worker welfare including higher negotiated wages in some sectors, better pension arrangements, negotiated allowances and periodic welfare benefits, which translate into short-term improvements in household income and living conditions (Okolie & Afonughe, 2021). At the same time, macro-level indicators complicate the picture: while Nigeria remains subSaharan Africa’s largest economy, the labour market exhibits structural weaknesses. Official labour-force surveys show persistent underemployment and a combined underemployment/unemployment measure (LU2) of 15.3% in Q1 of 2024, with employmentto-population ratios and labour-force participation rates that reflect substantial informal and precarious employment (Edet et al. (2024). These structural realities mean that union victories in formal sectors do not automatically reduce poverty at scale unless coverage expands beyond a narrow formal wage sector (Edet et al. 2024). Sectoral studies by Osuagwu and Chukwuemeka (2024), highlight how union action directly affects service delivery and human-development outcomes. In higher education, for instance, the recurring industrial disputes involving academic unions have produced repeated interruptions in teaching and research, with attendant declines in measurable academic outputs and delayed graduations that have long-term consequences for workforce readiness and productivity. Quantitative research by Osazuwa and Edeme, 2021), has also linked industrial unrest, measured by strike days, to measurable losses in sectoral output across education, health and construction, indicating that prolonged conflict can set back the very development objectives unions often seek to advance. Conversely, where collective bargaining functions and tripartite engagement have been sustained, unions have contributed to stabilising wages during inflationary episodes and to shaping social policy debates. For instance, the 2024 national negotiation over minimum wage provides a recent illustration of organised labour’s capacity to place living-cost concerns at the centre of national policy debate, even as implementation and macro constraints limited the extent of realised gains (Okolie and Afonughe (2021). In sum, this review portrays unionism as a potentially constructive force for social and economic development when it operates within effective institutions that translate negotiated gains into durable improvements, but also as a source of short-run disruption when conflict Contact IJRGP Copyright & Licensing Page 6 of 18 This article is licensed under a Creative Commons Attribution 4.0 International License. becomes protracted or when gains are eroded by inflation, poor enforcement or the exclusion of large informal worker populations. Challenges Hindering Labour Unions from Contributing to National Development in Nigeria A recurrent theme in the literature is that internal weaknesses within unions and adverse external conditions jointly constrain the ability of organised labour to foster sustained national development. Internally, problems such as limited internal democracy, leadership factionalism, weak financial transparency and inadequate member mobilisation undermine legitimacy and bargaining effectiveness; studies by Achu et al., 2024; Okolie and Afonughe (2021) note that when union leadership is perceived as politicised or unaccountable, member trust falls and collective action becomes more brittle. Externally, institutional and macroeconomic factors create further obstacles: legal agreements and collective-bargaining outcomes are frequently undermined by slow or partial government implementation, constrained public finances and macroeconomic shocks such as high inflation and currency volatility that quickly erode negotiated wage gains (Bamidele et al. 2019; Osazuwa & Edeme, 2021). The labour market’s heavy informalisation compounds the problem because formal unions historically cover a small fraction of the workforce; national reports and trade briefs point to a large share of employment being informal or self-employed, with consequent limits to union reach and bargaining leverage (Okolie & Afonughe, 2021). Moreover, the frequent recourse to industrial action, often a rational response to broken promises or delayed payments, nonetheless has spillover costs for public service delivery, investment confidence and human-development outcomes, thereby creating a feedback loop in which strike-driven gains for some groups can deepen deprivation for others if industrial stoppages halt essential services (Osuagwu & Chukwuemeka, 2024; Osazuwa & Edeme, 2021). Furthermore, globalisation and policy shifts, including privatisation, casualisation of labour and changing industrial structures have eroded traditional union strongholds, leaving unions with the double task of defending existing members while trying to reinvent strategies to organise precarious and informal workers (Ibrahim, 2013). Altogether, these internal and external constraints explain why union activity in Nigeria sometimes produces measurable welfare benefits for specific groups but falls short of contributing robustly and durably to national development metrics. Institutional and Policy Measures Strengthening or Weakening the Positive Role of Labour Unionism in National Development In Nigeria, policy and institutional frameworks have intermittently provided crucial support for labour unionism, but equally have at times undermined union capacity when weak, poorly enforced, or politicised. A prominent example is the tripartite negotiation process around the Contact IJRGP Copyright & Licensing Page 7 of 18 This article is licensed under a Creative Commons Attribution 4.0 International License. national minimum wage in 2024. Here, the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) successfully forced a public‐debate and negotiated with government on costof-living pressures, making gains in raising the floor wage. The implementation of the 2024 National Minimum Wage Act, signed into law in July 2024, set the federal floor at ₦70,000. However, the implementation has been uneven across states, as some state governments delayed or partly honoured the agreement due to fiscal limitations, inflation pressures, or political reluctance. This case demonstrates that while institutionalised negotiation mechanisms can elevate union demands and lead to policy wins, actual national development benefits depend heavily on follow-through by state institutions and macroeconomic stability. For instance, many states, including Lagos, Rivers, Bayelsa, Niger, Ogun, and Ondo, responded by approving minimum wages above that floor (e.g. Lagos and Rivers approved ₦85,000; Ogun ₦77,000; Bayelsa and Niger ₦80,000) as part of their state-level adjustments. These variations reflect how policy discretion at the sub-national level, capacity to generate revenue, and political will influence the translation of national legislation into worker welfare (Umenweke, & Anushiem, 2024). Another case is the Academic Staff Union of Universities (ASUU) and its engagements with the Federal Government. Over many years, ASUU has used bilateral and collective bargaining, legal and constitutional arguments, and strike action to demand improved funding for universities, better remuneration, restoration of earned allowances, and infrastructural improvements. There have been instances where government made academic funding promises or set up negotiation committees; in some cases, after protracted negotiations and industrial action, incremental funding improvements have occurred. Yet, in many instances, promised payments (for example, accrued allowances) linger for years without full payment or with partial implementation (Osuagwu & Chukwuemeka, 2024). In 2024, ASUU members at Ambrose Ali University (Ekpoma) publicly rejected government claims that outstanding salaries had been cleared, alleging that nearly 29 months of arrears were still owed (Adeniyi et al., 2024). Such disputes expose the limitations of legal or regulatory frameworks when promises are made without binding commitment or accountability, highlighting that legislated or negotiated policy measures are only as strong as the enforcement structures and political resolve behind them. The effect is that while certain academic communities benefit (staff welfare, infrastructure in some campuses), productivity, teaching quality and student outcomes continue to suffer in other universities that receive delayed or no implementation (Osuagwu & Chukwuemeka, 2024). This illustrates that legal or negotiation frameworks are not enough unless backed by enforceable timelines, reliable budgetary allocations, and accountability mechanisms. The Enugu State government’s handling of the 2024 minimum wage policy provides a sub‐national case study. For instance, after the Federal Government and unions agreed on a new minimum wage, some states, including Enugu, implemented the wage quickly and Contact IJRGP Copyright & Licensing Page 8 of 18 This article is licensed under a Creative Commons Attribution 4.0 International License. communicated the decision to civil servants. In contrast, other states delayed, citing revenue shortfall. Enugu’s relatively prompt implementation was attributed to stronger state-level institutional structures, better revenue mobilisation and a proactive civil service with clear administrative channels. Further illustrating these dynamics, Bamidele et al., (2024) examined the implementation of minimum wage policy in the Osun State Civil Service, demonstrating that even where unions engage robustly in collective bargaining, institutional bottlenecks (such as delayed budgetary allocations and bureaucratic inertia) reduce the timely delivery of promised wages. Their mixed-method study finds that in Osun, the capacity of the state machinery to execute wage increments and consequential adjustments strongly moderates the extent to which workers actually benefit. Another recent example is the work by Atiye and Itu (2024), which examines trade unionism and the politics of minimum wage implementation in Bayelsa State over the 2019-2023 period. They find that leadership conflicts within unions, local political resistance from state government and lack of strong collective bargaining structures significantly undermined the uptake of the 2019 national minimum wage and its consequential adjustments. Even where policy is formally adopted, implementation tends to lag due to state-government reluctance, sometimes grounded in revenue constraints or political priorities (Atiye & Itu, 2024). This differential highlights that institutional effectiveness at state level, including transparency in governance, financial capacity, clear chain of command and civil service discipline, matters greatly for whether policy measures supporting union demands translate into better outcomes for workers and public service delivery (Osuagwu & Chukwuemeka, 2024). Another important policy/institutional measure is the Labour Court and arbitration systems in Nigeria. In the steel sector, for example, workers at Ajaokuta Steel Company have used arbitration panels when collective bargaining broke down. The outcomes have sometimes led to government directives for partial compensation and the reinstatement of withheld benefits. Nonetheless, these arbitration systems are often hampered by delays, weak enforcement, and court backlogs; thus, even when decisions are favourable to unions, the impact is diluted if implementation is slow or contested. Furthermore, in Lagos State, labour negotiations in the port and transport sector show that where employers and unions have regular consultative forums, including monthly meetings to review workers’ welfare and logistical challenges (security, overtime, access to basic services), there are fewer work stoppages and better compliance with occupational safety and other agreements. For instance, the Truck Drivers’ Union’s negotiation with the Lagos Port Authority in 2022 over safety standards and compensation for delays led to joint oversight committees being established. These committees have reportedly reduced accidents by a measurable margin and improved delay compensation payments. This example underscores that institutionalised joint management or oversight bodies can help translate negotiated Contact IJRGP Copyright & Licensing Page 9 of 18 This article is licensed under a Creative Commons Attribution 4.0 International License. agreements into visible improvements, improving worker welfare and contributing to broader development (Lagos Port Authority & Truck Drivers’ Union Reports, 2022). Conversely, weaknesses appear in cases such as state governments failing to honour agreements. In 2019-2022, several state governments signed memoranda of understanding (MoUs) with unions (e.g. for hazard allowances in health sectors, or for periodic salary review for civil servants) but then delayed payments or only partially implemented them, citing budget shortfalls or claims of insufficient allocation from Federal Accounts. These lapses eroded trust between unions and government, led to repeated industrial action, and in some cases reversed earlier welfare gains. Such failures illustrate that legal frameworks or signed agreements are only as strong as political will, fiscal discipline, and oversight structures. These case studies reveal that institutional and policy measures, collective bargaining, legislative acts, wage laws, can strengthen labour unionism’s positive role when they are clear, enforceable, and backed by administrative and financial capacity. Conversely, when such policies lack strong enforcement, are poorly funded, or are implemented unevenly across jurisdictions, even formally progressive laws fail to generate sustained improvements in worker welfare or broader development outcomes. In sum, Nigerian experience shows that institutional and policy measures matter greatly. Effective collective-bargaining and tripartite negotiation, when backed by reliable financial commitment and competent administrative machinery, produce tangible benefits in worker welfare and public service delivery. On the other hand, gaps in enforcement, delays in implementation, poor state capacity, and weak or politicised oversight significantly weaken the ability of unionism to contribute sustainably to national development. Empirical Review Bamidele et al. (2024) conducted a study on Politics of Labour Unionism in the Implementation of the National Minimum Wage in Osun State Civil Service, Nigeria which examined how labour unions influence wage policy implementation in Osun State’s civil service. The study drew on pluralist theory, viewing labour, employers and the government as distinct interest groups whose interaction shapes outcomes. Employing a mixed-methods design, the authors collected both primary data (surveys of civil servants across ministries, departments and agencies) and secondary data; the sample included 400 civil servants selected using the Taro Yamane formula, and quantitative data were analysed via simple percentages while qualitative responses (Focus Group Discussion) were thematically analysed. The major findings were that unions exert pressure for decent wage, negotiate scientifically with government, and act as monitors of government policy implementation; however implementation is often delayed or compromised due to political considerations, budgetary constraints and weak institutional follow-through. They concluded that the role of labour unions is crucial in wage policy implementation, but effectiveness depends on the cordial relationship with government and employers and robust administrative capacity. Contact IJRGP Copyright & Licensing Page 16 of 18 This article is licensed under a Creative Commons Attribution 4.0 International License. Article Publication Details This article is published in the International Journal of Multidisciplinary Department, ISSN XXXX-XXXX (Online). In Volume 1 (2025), Issue 1 (September-October) The journal is published and managed by IJRGP. Copyright © 2025, Authors retain copyright. Licensed under the Creative Commons Attribution 4.0 International License (CC BY 4.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. https://creativecommons.org/licenses/by/4.0/ (CC BY 4.0 deed) Acknowledgements We sincerely thank the editors and the reviewers for their valuable suggestions on this paper. Declarations Ethics approval and consent to participate Not applicable. This study did not involve human or animal subjects. 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