Explore how major companies in Nigeria exploit workers through contractors, with government inaction enabling modern slavery practices. Uncover the realities behind the exploitation and lack of accountability.
Modern slavery in Nigeria is an entrenched issue that goes beyond the conventional images of forced labor and human trafficking. In contemporary Nigeria, large companies and employers—including banks, supermarkets, and multinational corporations—have devised innovative methods to exploit workers. Instead of direct employment relationships, they rely on third-party contractors who provide minimal wages while maximizing their own profits. This practice perpetuates a cycle of poverty, rendering employees vulnerable to exploitation by companies that disregard fundamental labor rights. Despite numerous reports and investigations highlighting these abuses, government institutions and the Nigerian Labour Congress (NLC) appear either complicit or largely indifferent to addressing the situation.
In this article, we explore how these corporations exploit workers, the reasons behind government inaction, and the persistence of modern slavery even in countries like the UK—highlighting that this is not merely a Nigerian issue but a global concern.
The Framework of Contemporary Slavery in Nigeria
Modern slavery in Nigeria exists within a complex and deeply entrenched system. Major corporations often avoid hiring employees directly, opting instead to work with contractors who supply labor for various roles such as security personnel, cleaners, and even mid-level staff. These workers receive substantially reduced wages while the contractors pocket large sums paid by companies—disbursing only about 20% of these payments to the actual laborers. This type of exploitation is reminiscent of traditional slavery but occurs within contemporary corporate frameworks.
The Function of Contractors
Contractors are the primary enablers of this contemporary form of exploitation. Acting as intermediaries for large corporations, they enable these companies to shirk obligations such as providing fair wages and benefits like health insurance, pensions, or paid leave. Contractors pocket significant profits by capitalizing on the disparity between what they bill companies and what they pay their workers.
An investigation into this practice uncovered alarming statistics. Contractors supplying security personnel to banks or supermarkets, for example, may charge approximately ₦100,000 per employee while paying the workers merely ₦20,000 to ₦25,000 each month. This glaring disparity forces laborers to live below the poverty line while allowing both contractors and companies to evade accountability.
The Role of the Nigerian Government: A Legacy of Silence and Indifference
The Nigerian government has largely remained silent on the issue. Despite numerous complaints from labor organizations and activists, it has done little to address worker exploitation by third-party contractors. Labor laws exist but are either poorly enforced or deliberately ignored.
The government’s disregard for these labor abuses prompts numerous concerns. Why has it failed to enforce stricter regulations to prevent such practices? Some critics contend that corruption is a major factor, suggesting high-ranking officials gain from these exploitative systems. Others think the government hesitates to impose restrictions on large corporations due to their economic contributions.
The Nigerian Labour Congress: Active Participants or Powerless Bystanders?
The Nigerian Labour Congress (NLC), the premier labor union in Nigeria, is anticipated to champion workers’ rights. Nevertheless, it has faced accusations of being complicit in the persistent exploitation of Nigerian employees. Rather than pushing for improved wages and enhanced working conditions, critics claim that the NLC has neglected to oppose multinational companies’ use of contractors. Detractors argue that the organization appears more concerned with political advancement than genuine labor advocacy.
A significant example can be found in the banking industry, where NLC has consistently overlooked addressing the disparity between full-time employees and contract workers. Even though it is well-known that contractors pay their staff only a small fraction of what full-time employees earn, the union has made minimal efforts to highlight this issue.
The Real-World Effects on Nigerian Employees
The consequences of this system on Nigerian workers are profound. Thousands find themselves laboring under uncertain conditions, receiving wages that scarcely cover basic needs. The majority lack job security, benefits, and prospects for advancement. Consequently, despite being employed by some of the country’s largest and most successful corporations, they remain ensnared in a cycle of poverty.
For example, in the retail industry, employees hired through contractors often endure extended work hours without receiving overtime pay. Many individuals have indicated that they have faced bullying from their superiors and live in a perpetual state of anxiety regarding potential job loss, without any form of compensation. Similarly, security officers working at banks and other financial institutions encounter comparable difficulties, frequently enduring 12-hour shifts without any extra benefits apart from their minimal wages.
Why Large Corporations Favor Hiring Contractors
For multinational companies operating in Nigeria, utilizing contractors is a strategic approach aimed at minimizing operational expenses and sidestepping the legal and social obligations tied to direct employment. These corporations claim that employing contractors is a common business tactic essential for maintaining competitiveness. However, this justification weakens under scrutiny, as it becomes evident that exploiting workers via contracting primarily enhances the company’s profits while disadvantaging the workers.
These corporations frequently shield themselves behind legal loopholes, claiming they have no authority over the wages contractors provide to their employees. However, in truth, these companies are complicit in perpetuating a system that fosters inequality and modern-day slavery.
Global Perspective: Modern Slavery Beyond Nigeria
Modern slavery is a global issue, not confined to Nigeria alone. It impacts both developing and developed countries alike. For example, in the UK, industries such as agriculture, construction, and domestic work experience similar problems. Workers are often hired through agencies and contractors that exploit them by paying wages far below the minimum standard with minimal or no job security—conditions akin to modern slavery.
In developed countries, the difference lies in more active legal frameworks and labor unions that protect workers’ rights. Nonetheless, even these nations have loopholes allowing companies to exploit vulnerable workers, particularly migrants.
Path to Freedom: Ending Modern-Day Slavery
Tackling modern slavery in Nigeria demands a comprehensive strategy. First and foremost, labor laws must be bolstered and rigorously enforced. The government needs to take decisive action against companies that exploit workers via contractors, ensuring the protection of labor rights. It’s essential for employers to hire workers directly, offer fair wages, and provide critical benefits such as health insurance and pensions
The Nigerian Labour Congress needs to intensify its efforts in advocating for workers’ rights. It should actively hold companies and contractors accountable, ensuring that Nigerian workers are fairly compensated for their labor.
Modern slavery in Nigeria, enabled by major corporations employing contractors, significantly impacts thousands of workers. With government oversight lacking and labor unions largely inactive, these workers remain vulnerable to exploitation. This problem extends beyond Nigeria; it is a global issue affecting countries as varied as the UK. Addressing modern slavery demands immediate action from all stakeholders—governments, labor unions, companies, and society at large. Only through collective efforts can we dismantle the chains of modern slavery and ensure Nigerian workers receive their rightful dignity and rights.
