The idea of establishing a National Institute for Labour Studies (NILS) dates back to the 3rd National Development Plan 1975 to 1980 when the Federal Government of Nigeria took over the Patrick Lumumba Labour Institute and the Trade Union Institute for economic and social development established by the banned Nigerian Trade Union Congress of Nigeria (NTUC) and United Labour Congress of Nigeria (ULCN) respectively.

The antecedent and rationale behind the establishment of the National Institute for Labour Studies were therefore well enunciated in 1975 National Labour Policy and Plan. The foundation of the Institute was laid in Ilorin during the second Republic by the then civilian President Shehu Shagari on 4th May, 1983.