KEY POINTS
- FIWON wants the government to match informal workers’ pension savings 50:50.
- It says over 93 percent of Nigeria’s workforce lacks pensions or safety nets.
- The group also demanded free health cover and workplace injury compensation.
A coalition of informal workers has asked the Federal Government to match their pension savings naira for naira, arguing that millions of Nigerians outside the formal sector retire with nothing. The Federation of Informal Workers Organisations of Nigeria made the demand in a statement. Moreover, it tied the call to a wider push for healthcare, insurance and legal protection.
Why informal workers want a 50:50 match
FIWON said more than 93 percent of Nigeria’s workforce sits in the informal economy, yet most of those workers lack pensions, healthcare or any safety net. Specifically, the group named traders, artisans, farmers, mechanics, transport workers, waste pickers and domestic workers among the millions left exposed. However, it argued, these workers still drive much of the economy. The informal sector accounts for a large share of Nigeria’s economic activity, yet it sits almost entirely outside the formal safety net.
The federation wants a government-backed matching scheme. Therefore, it asked the state to contribute an equal sum to whatever informal workers save, mirroring the 50:50 split in the formal sector. “This would make pension contributions more attractive and sustainable for low-income earners,” the statement said, signed by General Secretary Gbenga Komolafe and President Bolaji Saadu. A 50:50 match would, however, carry a heavy cost for a government already straining under debt and reform pressures, which may temper its appetite.
Micro-pension scheme ‘has failed’
Nigeria’s contributory pension scheme covers mostly formal employees, while a voluntary micro-pension plan launched in 2019 to reach the informal sector. However, FIWON criticized that plan, which the National Pension Commission runs. According to the group, low earnings and high inflation have gutted the savings, leaving workers with little to show. Consequently, it said, few informal workers see any reason to keep paying in.
The coalition argued that irregular, meager incomes make voluntary saving almost impossible. Indeed, without a government top-up, it said, most workers cannot build a pension that survives retirement. Reaching that vast informal majority has long challenged policymakers, since incomes swing wildly and many workers distrust formal institutions.
Beyond pensions: health and legal cover
The group also pressed for wider protections. Additionally, it demanded subsidized care and free health insurance for vulnerable groups, including pregnant women, children under five, the elderly and people with disabilities. FIWON said most informal workers cannot afford insurance premiums, while the Basic Health Care Provision Fund remains poorly run in many states.
It further urged the government to extend the Employees’ Compensation Act to informal workers, so those hurt or killed on the job receive support. Meanwhile, the federation said many of its members face assault, abuse and even forced evictions without any legal cover. “The time for tokenism is over,” the group said. “The time for real social protection is now.”
