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🇳🇬 Nigeria /Economy & Trade

Workers’ Day offers little hope for informal sector – FIWON

From The Punch · (5m ago) English Critical tone

Summarized and contextualized by DistantNews.

TLDR

  • The Federation of Informal Workers’ Organisations of Nigeria (FIWON) calls for expanded social protection for informal sector workers, highlighting widespread poverty and lack of basic welfare.
  • FIWON states that over 93% of Nigeria's workforce operates in the informal economy, excluded from government welfare schemes despite contributing significantly to GDP.
  • The organization criticizes the micro-pension scheme for failing low-income earners and advocates for a government-backed co-contribution model and subsidized healthcare.

As International Workers' Day approaches, the Federation of Informal Workers’ Organisations of Nigeria (FIWON) issues a stark warning: for millions of Nigerians in the informal sector, the occasion offers little to celebrate amidst deepening poverty and a critical lack of social protection.

But what is there to celebrate when the majority of Nigerian workers cannot access basic healthcare, have no pension to look forward to, and receive no support when injured on the job?

— FIWONExpressing the lack of celebratory aspects for informal workers on Workers' Day.

FIWON highlights that a staggering 93% of Nigeria's workforce operates outside the formal employment system, leaving them vulnerable and excluded from essential government-backed welfare schemes. Despite contributing at least 65% to Nigeria's Gross Domestic Product, these informal workers – including traders, artisans, transporters, and farmers – face 'structural exclusion' from pensions, healthcare, and workplace compensation.

The organization criticizes the current micro-pension scheme, managed by the National Pension Commission, as inadequate for low-income earners. They argue that high inflation rapidly erodes the meager savings accumulated through irregular contributions, offering little meaningful retirement protection. FIWON is advocating for a government-backed co-contribution model, where authorities would match informal workers' pension contributions on a 50:50 basis, providing a more sustainable safety net.

Currently, an informal worker must save entirely from their meagre, irregular income. With inflation at record highs, those savings become worthless before retirement.

— FIWONExplaining the inadequacy of current savings mechanisms for informal workers.

Beyond pensions, FIWON is demanding subsidized healthcare for informal workers and free medical coverage for vulnerable groups. They accuse many state governments of failing to implement the Basic Health Care Provision Fund effectively, rendering it non-existent in practice in many areas. The call for expanded social protection underscores the urgent need to address the precarious conditions faced by the majority of Nigeria's workforce.

The programme [Basic Health Care Provision Fund] existing ‘only on paper’ in several parts of the country.

— FIWONCriticizing the ineffective implementation of healthcare programs for informal workers.
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Originally published by The Punch. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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