The institute was established by the Fedral Government of Nigeria vide the provisions of Decree No. 5 of 1986 as a statutory board under the Federal Ministry of Employment, Labour and Productivity, Nigeria.
As contained in Section 2 of the Decree, the objectives of the Institute are:

• To provide workers’ education generally so as to enhance the role of trade unions in the social and economic development of the country and equip trade union officials and managers with skills normally required for collective bargaining and joint consultation in fostering the growth of better Labour and management relations;
• To provide opportunities for policy makers in the field of Labour and social policy in industry, in the trade unions and in government to acquire by personal experience a full understanding of the issues which confront them in their day-to-day work;
  
• To provide and arrange comparative study and investigation of the principles and techniques of trade unionism and thereby assist Government in evolving a virile and well-organized trade union trade union movement capable of giving full and responsible expression to the needs of workers and the aspirations of the country;
  
• To undertake, organize the facilitate study course, conferences, lectures, seminars and the like with a view to improving the standard of the trade union administration and infusing a sense of direction and accountability;
  
• To promote research through collaboration with universities and Institute concerned with industrial relations and Labour matters
  
• To award grants, scholarships of travel fellowships for research in Labour studies and allied subjects;
  
• To undertake and provide for publication of journals, research papers and books in furtherance of the aforesaid objectives.

In relation to the functions of the Federal Ministry of Employment, Labour and Productivity, Nigeira, therefore, the Institute’s main objectives can be seen as complementary in the area of promoting industrial peace and harmony through Training, Research and Consultancy Services. It serves both the public and private sectors of the economy. More than that, the impact of the Institute’s courses and programmes are increasingly being felt in our generally restive industrial relations system as more and more labour relations practitioners are now showing interest in the Institute’s programmes