Non-regular employees call for equal employer-employee pension funding split

The Federation of Informal Workers Organisations of Nigeria, FIWON, is urging the Federal Government to implement a 50:50 pension co-contribution scheme for informal workers to bolster social protection for the millions of Nigerians operating outside the formal sector.

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According to FIWON, a staggering 93 per cent of Nigeria's workforce remains trapped in the informal economy, lacking access to essential benefits such as pensions, healthcare, and workplace insurance, despite their significant contributions to the nation's economy.

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FIWON General Secretary, Gbenga Komolafe, and President, Bolaji Saadu, highlighted the plight of various workers, including traders, artisans, and farmers, who are affected by the lack of adequate welfare protection, in a statement issued by the organisation.

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The existing micro-pension scheme, managed by the National Pension Commission, PenCom, has been criticised by FIWON for failing to provide meaningful benefits to informal workers due to low earnings and the impact of inflation on savings.

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FIWON is demanding a government-backed matching contribution arrangement, where the government would contribute an equal amount to the pension savings of informal workers, to make pension contributions more attractive and sustainable for low-income earners.

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The organisation argued that many informal workers struggle to build sustainable retirement savings due to their irregular and meagre incomes, making government intervention necessary to support their pension savings.

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FIWON also renewed its call for subsidised healthcare and free health insurance coverage for vulnerable Nigerians, including pregnant women, children under five years, the elderly, and persons with disabilities.

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The current healthcare system has effectively excluded most informal workers, as they cannot afford health insurance premiums, while the Basic Health Care Provision Fund remains poorly implemented in many states, according to FIWON.

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The organisation is further calling for the extension of the Employees' Compensation Act to informal workers, to ensure compensation for workplace injuries, disabilities, and deaths, citing the daily hazards faced by many informal workers without legal protection or compensation.

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FIWON demanded the inclusion of informal workers in policy discussions relating to taxation, urban planning, and social protection reforms, urging governments to move beyond ceremonial speeches and implement concrete policies to improve the welfare and dignity of Nigerian workers.

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The organisation stressed that the time for tokenism is over, and it is now time for real social protection, as stated in their statement, "The time for tokenism is over, the time for real social protection is now".