Informal Workers Demand 50:50 Pension, Better Social Protection

Informal Workers Demand 50:50 Pension, Better Social Protection
Group says over 93 percent of workers lack social protection coverage
Calls for healthcare, compensation, and stronger welfare policies for informal workers

The Federation of Informal Workers Organisations of Nigeria, FIWON, has called on the Federal Government to introduce a 50:50 pension co-contribution scheme aimed at expanding social protection for millions of Nigerians working in the informal sector.

FIWON said more than 93 per cent of Nigeria’s workforce operates in the informal economy and remains without access to pensions, healthcare, workplace insurance, or other basic social safety nets, despite their contribution to the national economy.

EDITOR’S PICKS

EKO HOT BLOG reports that in a statement issued by the General Secretary, Gbenga Komolafe, and President, Bolaji Saadu, the group listed traders, artisans, farmers, transport workers, mechanics, domestic workers, waste pickers, and vendors among those affected by inadequate welfare coverage.

The organisation criticised the existing micro pension scheme under the National Pension Commission, PenCom, saying it has failed to deliver meaningful benefits due to low incomes and the impact of inflation on savings.

FIWON therefore demanded a government backed matching contribution system where the government contributes an equal amount to the pension savings of informal workers.

“We reiterate our demand for a matching contribution system where government complements the pension savings of informal workers, a 50:50 co-contribution model similar to what obtains in the formal sector. This would make pension contributions more attractive and sustainable for low-income earners,” the statement read.

The group argued that irregular and low earnings in the informal sector make it difficult for workers to save adequately for retirement without government intervention.

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

It said many informal workers are excluded from healthcare services because they cannot afford insurance premiums, while the Basic Health Care Provision Fund remains poorly implemented in several states.

The organisation further urged the extension of the Employees’ Compensation Act to cover informal workers, ensuring compensation for workplace injuries, disabilities, and deaths.

It noted that many workers face unsafe conditions, harassment, and forced evictions without any legal protection or support.

FIWON also called for the inclusion of informal workers in policymaking processes related to taxation, urban planning, and social protection reforms.