By Kayode Lawrence-Omole
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The Factory Compliance Playbook for Nigeria
Nigeria’s Factories Act is the cornerstone of workplace safety regulation in the country. For global manufacturers setting up operations, contracting local suppliers, or sourcing from Nigerian industrial zones, understanding this law is essential. The Act outlines strict rules on machinery safety, worker welfare, inspections, and record-keeping, aiming to prevent industrial accidents and promote safe working environments. Non-compliance can lead to fines, factory closures, or reputational damage.
This article breaks down the key areas global manufacturers need to know, from equipment safety standards to inspection procedures and incident reporting requirements, so you can stay compliant and keep your teams protected.
Safety Equipment Rules: Your Frontline Defence
At the heart of factory safety in Nigeria are the rules for equipment and worker protection. If you are a global manufacturer setting up operations here, these rules are your frontline defence against accidents, injuries, reputational damage, and costly legal trouble.
First, the Factories Act places a clear and binding duty on employers to ensure that all machinery is safe to use. That means every dangerous part must be effectively guarded. Think of gears, pulleys, saw blades, cutting heads, or conveyor belts. These cannot be left exposed. Guards, barriers, and interlocks must be installed and properly maintained. Inspectors pay close attention to these details. They would not accept excuses like “the guard was removed for maintenance” or “it slows down production.” Under the law, if a part can cause injury, you must prevent accidental contact. It is that simple, and that strict.
Next up is Personal Protective Equipment (PPE)[1]. The Factories Act does not just say “consider PPE”, it makes it your legal responsibility to provide suitable protective gear for the hazards present. The law deliberately keeps it broad to cover all industrial contexts. But here is what it typically means in practice:
- Helmets or hard hats for impact protection in construction or heavy manufacturing.
- Safety goggles or face shields for cutting, welding, grinding, or chemical handling.
- Gloves appropriate to the task (heat-resistant, cut-resistant, chemical-resistant).
- Respirators or masks where there is dust, fumes, or hazardous vapours.
- Hearing protection in high-noise environments.
- High-visibility vests in logistics or vehicle-heavy zones.
But here is the catch many companies miss: PPE must be maintained in good condition. Handing out cheap gloves once a year does not cut it. The law expects you to check, replace, and maintain PPE continuously. Workers also need clear training on how and when to use it.
Emergency equipment is another mandatory area. The Factories Act requires that factories be equipped and prepared for emergencies. This includes:
- Fire extinguishers in appropriate types (CO2, foam, powder) and quantities, regularly serviced and clearly marked.
- Clearly marked and unobstructed emergency exits.
- First aid boxes stocked to a suitable level for the workforce size and risk level.
- Evacuation routes posted prominently, with workers trained to know them.
- Alarm systems that can be heard throughout the premises.
Ask yourself: If a fire broke out today, would your team know exactly what to do? Because inspectors will ask, and workers will be safer if they are prepared.
Maintenance is the final piece many overlook. Even the best-designed guard or safety system is useless if it is broken or bypassed. The Factories Act requires employers to maintain all equipment in safe condition. That means:
- Regular inspections and documented maintenance schedules.
- Prompt repair of damaged guards or PPE.
- Training maintenance staff on lockout/tagout procedures to prevent accidental start-up during servicing.
Inspection and Compliance: Facing Regulatory Reality
One of the most critical (and often underestimated) aspects of Nigeria’s Factories Act is inspections and compliance. This is where your safety plans meet reality, because Nigerian factory inspectors have real authority, and they will use it.
What can inspectors do?
Under the Factories Act, inspectors have sweeping powers to enter factories at any reasonable time, and sometimes, without advance notice. Their goal is not just to catch you off guard for the sake of it, but to see the true state of safety practices.
During an inspection, they can:
- Examine machinery, guards, and safety systems to confirm they meet legal requirements.
- Check the condition and availability of PPE.
- Review your emergency equipment—fire extinguishers, first aid boxes, exits, alarms.
- Investigate records of maintenance, accidents, and inspections.
- Question your workers about safety procedures and training.
- Take samples of substances or materials that might be hazardous.
They also have enforcement powers. If they spot a serious hazard, like unguarded machinery or blocked exits, they can issue an improvement notice demanding it be fixed by a certain date.[2] For imminent danger, they can serve a prohibition notice stopping the use of equipment immediately.[3]
What are the consequences of non-compliance?
Non-compliance is not something to shrug off. Penalties under the Factories Act include:
- Fines for each offence, which can accumulate quickly for multiple breaches.
- Potential prosecution of the company and responsible managers.
- Orders to cease operations until safety issues are resolved.
- In serious cases (e.g., worker death due to negligence), reputational and legal damage can extend beyond Nigeria’s borders.
Recordkeeping and Incident Management: Proving Your Commitment
Many companies focus on guards, PPE, and inspections, but forget that under Nigerian law, your paperwork is just as important as your physical safety measures. Why? Because regulators do not just want you to say you are safe, they want evidence. And in an inspection, your records are proof that you are actually doing what the law requires.
Mandatory Registers and Records
Under the Factories Act, factories must keep specific, up-to-date records that are available for inspection at any time. Typical requirements include:
- Accident registers: Every accident-causing death or serious injury must be recorded in detail, including date, time, location, and nature of the injury.
- Machinery inspections: Records of safety checks on equipment and guards.
- Maintenance logs: Proof of regular servicing and repairs.
- PPE distribution and replacement logs: Showing workers received, used, and replaced protective gear as needed.
- Training records: Documenting who was trained, when, and on what topics (e.g., emergency procedures, equipment use, PPE).
Incident Reporting Obligations
If there is a serious accident, especially one that results in death or major injury, the law requires you to notify the authorities promptly.[4] Failing to report is not just a regulatory offence; it can be treated as evidence of negligence. Think of it this way: an unreported serious accident is a red flag for inspectors and your brand’s reputation alike.
Your obligations typically include:
- Immediate notification of the relevant authorities.
- Preserving the scene where practical, so inspectors can investigate.
- Cooperating fully with any investigation.
For international brands sourcing from Nigeria or running local factories, recordkeeping and incident management are important because they help mitigate fines, legal action, or operational shutdowns and provide evidence of safe practices and ethical treatment of workers to global buyers.
Practical Tips for Global Manufacturers
It is one thing to know the rules in the Factories Act; it is another to make them work on the ground. For global manufacturers operating in Nigeria or sourcing from local partners, the real challenge is building consistent, effective safety practices that align with both Nigerian law and international standards.
Here are some practical, actionable strategies to help you do just that:
- Align Company Policies with Nigerian Law
Many multinational companies have strong global safety policies, but do not assume they automatically satisfy local requirements. The Factories Act has specific obligations that you must incorporate into your local operations. Conduct a legal gap analysis comparing your global policy with Nigeria’s Factories Act requirements and adapt your internal safety manuals and training materials to include local rules on guarding, PPE, inspections, and recordkeeping.
- Train and Empower Local Teams
Your people on the ground are the real key to compliance. Even the best-written policy is useless if workers and supervisors do not know it or cannot enforce it. Run regular, hands-on safety training. Focus on practical skills: How to spot hazards, use PPE correctly, maintain guards, and respond to emergencies.
- Engage Proactively with Local Regulators
Factory inspectors in Nigeria are not just enforcers; they are also valuable partners in understanding local expectations. Instead of waiting for them to show up unannounced, smart manufacturers build open, professional relationships. Invite local inspectors for courtesy visits or to review new facilities. Ask questions about requirements and respond promptly and thoroughly to any improvement notices or feedback.
- Audit Your Supply Chain
For brands sourcing from Nigerian factories, supplier compliance is just as critical as your own. No global customer wants headlines about unsafe factories in their supply chain. Require suppliers to comply with Nigerian Factories Act standards as part of your contract, and conduct regular supplier audits focused on safety, recordkeeping, and workers welfare.
- Foster Continuous Improvement
Finally, treat safety compliance as an evolving, ongoing process. Laws can change. Operations expand. Risks shift. Set safety key performance indicators (KPIs) and review them quarterly. Encourage reporting of near-misses to identify hazards early, and celebrate safety milestones to reinforce positive behavior
Conclusion: Building Safer, Stronger Operations
Navigating Nigeria’s Factories Act is not just about avoiding fines or passing inspections; it is about demonstrating genuine commitment to worker safety, operational excellence, and ethical business practices. For global manufacturers, this means going beyond a surface-level understanding of the law to embed safety into the DNA of your Nigerian operations or supply chain. By ensuring machinery is properly guarded, providing and maintaining suitable PPE, preparing for emergencies, keeping detailed records, and proactively engaging with local regulators, you build a workplace that protects your people and your brand. And in today’s world of heightened consumer awareness and supply chain transparency, that is not just good practice; it is good business.
For further advisory or a tailored compliance session with your legal team, contact:
Kayode Lawrence-Omole, Risk and Compliance Expert, Email: olukayode.lawrence-omole@dentons.com
Tel: +2348077771670
[1] Section 47 Factories Act
[2] Section 37 Factories Act
[3] Section 38 Factories Act
[4] Section 51 Factories Act
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