Informal workers call for a 50/50 split in pension co‑contributions

By Victor Ahiuma-Young

The Federation of Informal Workers Organisations of Nigeria, FIWON, has urged the Federal Government to launch a 50:50 pension co‑contribution scheme for informal workers as a critical step toward bolstering social protection for the millions of Nigerians who operate outside the formal sector.

In a statement, FIWON noted that more than 93 per cent of Nigeria’s workforce remains in the informal economy and lacks access to pensions, healthcare, workplace insurance, or other social safety nets, despite contributing significantly to the national economy.

FIWON General Secretary Gbenga Komolafe and President Bolaji Saadu identified traders, artisans, home workers, garment makers, construction workers, farmers, food processors, mechanics, transport workers, waste pickers, domestic workers, and vendors as groups most affected by the absence of adequate welfare protection.

The organisation criticised the current micro‑pension scheme run by the National Pension Commission (PenCom), arguing that it has failed to deliver meaningful benefits for informal workers due to low earnings and the impact of inflation on savings.

FIWON therefore called for a government‑backed matching contribution arrangement in which the state would contribute 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 that in the formal sector. This would make pension contributions more attractive and sustainable for low‑income earners,” the statement read. FIWON added that many informal workers survive on irregular and meagre incomes, making it difficult to build sustainable retirement savings without government intervention.

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

According to FIWON, the current healthcare system effectively excludes most informal workers because they cannot afford health insurance premiums, while the Basic Health Care Provision Fund remains poorly implemented in many states.

FIWON further called for the extension of the Employees’ Compensation Act to informal workers to ensure compensation for workplace injuries, disabilities, and deaths.

It lamented that many informal workers face daily hazards without legal protection or compensation, citing cases of assault, abuse, hazardous working conditions, and forced evictions by government taskforces and security agencies.

FIWON also demanded the inclusion of informal workers in policy discussions related to taxation, urban planning, and social protection reforms.

The organisation urged governments at all levels to move beyond ceremonial speeches and implement concrete policies that would improve the welfare and dignity of Nigerian workers.

“The time for tokenism is over. The time for real social protection is now,” the group stated.

The post Informal workers demand 50:50 pension co‑contribution appeared first on Vanguard News.