Little Hope for Nigeria’s Informal Sector on May Day



The Federation of Informal Workers’ Organisations of Nigeria has called on the Federal Government to urgently expand social protection coverage for millions of Nigerians working outside the formal employment system, warning that worsening poverty and inequality have left most workers without pensions, healthcare, or workplace protection.

In a statement issued on Thursday ahead of the 2026 International Workers’ Day celebration, the group said more than 93 per cent of Nigeria’s workforce operates in the informal economy but remains largely excluded from government-backed welfare schemes. The statement was signed by Gbenga Komolafe and Bolaji Saadu.

The group said while the Federal Government had declared Friday, May 1, a public holiday to commemorate Workers’ Day, the occasion offered little cause for celebration for millions of informal workers struggling with rising living costs, inflation and lack of social safety nets.

According to FIWON, informal workers, including traders, artisans, domestic workers, transporters, waste pickers, mechanics, farmers, garment makers, and food processors, account for at least 65 per cent of Nigeria’s gross domestic product but continue to face “structural exclusion” from pension schemes, healthcare coverage, and workplace compensation programmes.

“Yes, Workers’ Day is meant to celebrate the dignity of labour and the contributions of workers to national development. 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?” the organisation said.

The group criticised the micro-pension scheme managed by the National Pension Commission, arguing that the programme had failed to provide meaningful retirement protection for low-income earners because inflation was rapidly eroding savings accumulated through irregular contributions.

FIWON called for the introduction of a government-backed co-contribution model under which authorities would match pension contributions made by informal workers on a 50:50 basis.

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

The organisation also urged authorities to subsidise healthcare for informal workers and provide free medical coverage for vulnerable groups, including pregnant women, children under five, the elderly, and persons with disabilities.

It accused many state governments of failing to properly implement the Basic Health Care Provision Fund, describing the programme as existing “only on paper” in several parts of the country.

Beyond healthcare and pensions, FIWON demanded the extension of workplace protection laws, including the Employees’ Compensation Act, to cover workers in the informal economy who currently receive no compensation for injuries, disability or death sustained while working.

The group said many informal workers face unsafe working conditions and frequent harassment from task forces, police officers, and local authorities.

“Every day, market women are assaulted by taskforces, mechanics are injured in workshops, waste pickers are exposed to hazardous materials, and domestic workers suffer abuse behind closed doors,” FIWON said.

The organisation warned that widening inequality and continued exclusion of informal workers from welfare protections could undermine social cohesion and economic stability. “We cannot build a stable, prosperous Nigeria when the vast majority of workers are excluded, exploited, and ignored,” it added.

As part of its demands, FIWON called on federal and state governments to include informal workers in policy discussions involving taxation, social protection reforms, and urban planning policies affecting their livelihoods.

The group urged informal workers across the country to use this year’s Workers’ Day celebration to continue pushing for recognition, dignity, and economic protection.

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