Situation and Priorities

Social protection situation

Legal and adequate coverage of social protection for Nigerian residents is limited. Most of the individuals covered are in the formal sector and fall under the three main contributory social security schemes, which cover health, employment injury, survivor, and old age contingencies: The National Health Insurance Scheme (NHIS), the Pension Commission (PenCom), and the National Social Insurance Trust Fund (NSTIF). A national-wide social assistance programme focuses on reaching the poorest and vulnerable in the country.

With the objective to extend social protection to all Nigerian residents, the government and its social protection partners have taken significant steps towards establishing a social protection floor in recent years. Firstly, in December 2017, the federal executive council (FEC) approved the revised National Social Protection Policy (NSPP). The NSPP which expires in 2021, has been reviewed in line with its requirements, and was approved by the Federal Executive Council (FEC) in December 2022. The revised policy aims to Build on existing effort of government to establish social protection floor in Nigeria, and extend coverage to previously excluded group. Secondly, the federal government set up a social assistance coordinating platform called the National Social Investment Programme (NSIP) to provide oversight to a large-scale social safety net programme at Federal and State levels. Thirdly, a digital national identity system is being created with the objective of linking residents to social government services, which will ultimately ensure financial inclusion for all. Fourthly, in 2019 and against the backdrop of rising poverty levels in the country, the President announced the government’s commitment to lift about 100 million Nigerians out of poverty. To achieve this, the government established a new Federal Ministry of Humanitarian Affairs, Disaster Management and Social Development (FMHADMSD) and charged it with the responsibility of implementing a wide range of social assistance programmes (the NSIP) as well as overseeing the activities of strategic government agencies involved in the implementation of social protection and humanitarian related programmes and schemes in Nigeria. Finally, a major reform of the National Health Insurance Scheme (NHIS) was initiated through the approval of the National Health Insurance Authority Act (2022) which makes health insurance mandatory for all Nigerians and establish the vulnerable group fund(VGF) with the aim of providing coverage for those who do not have capacity to pay.

COVID-19 and other crises

Nigeria implemented a range of measures to mitigate the economic and social impact of COVID-19. This included expanding the coverage of an existing cash transfer programme, using a World Bank loan, providing 20,000 Naira (US$52) per month for four months to poor and vulnerable households on the National Social Register. Establishing a Rapid Response Register (RRR) to cover urban poor affected by the pandemic. Although those benefiting from this cash transfer increased from 2.6 million households to approximately 4 million households, gaps remain as an estimated 90 million people live in extreme poverty.

Other measures included food packages for poor and vulnerable households, providing access to credit, and tax rebates for employers who agreed not to fire employees in 2020. However, there is little available for workers who lost their jobs, and even less for workers in the informal economy, who are estimated to make up over 80% of the labour force. COVID-19 drew into sharp relief the need to develop a shock responsive social protection system, including expanded health insurance.

Government and social partner priorities

• Establish a gender-sensitive and age-appropriate framework to ensure a minimum social protection floor for all Nigerian citizens for a life of dignity
• Lift 100 million Nigerians out of poverty through social protection and jobs
• Reduce out-of-pocket expenditure on health as a percentage of Total Health Expenditure by 20%
• Strenghtening of the 36 state social protection system.
• Operationalization of the Vulnerable Group Fund to extend health protection to vulnerable Nigerians
• Extension of social protection to the informal economy
• Stenghtened legal framework for the social assistance component
   

ILO Projects and Programmes

• Accelerating action for the elimination of child labour in supply chains in Africa (ACCEL-Africa) - Phase II
  30.06.2023 - 30.06.2028 USD 29,702,970 Netherlands
• Country envelopes 2023 global project – Accelerating progress on HIV and AIDS and ending inequalities in the world of work
  01.01.2023 - 31.12.2024 USD 890,196 UNAIDS

Results

The ILO supported the costing, prioritization and fiscal space for social protection policy in 2022. The cost for a total of 19 social protection policies across four categories were assessed using the RAP model and capacity provided to the MFBNP to utilize the tool and adjust any three parameters per the policy described in the RAP model to obtain different costs scenarios.

The ILO supported the advocacy for the approval of the National Health Insurance Authority Act 2022. This law makes health insurance mandatory for all Nigerians.

ILO supported the operationalization of the Soloto State Healthcare Management Authority (SOCHEMA).

ILO supported the process for the interoperability of the National Social Register with other register in the country.

The ILO supported the drafting of the National Social Protection bill through the provision of technical and capacity building support to the Legal drafting team. The bill is now awaiting approval from the federal executive council.

• The acturial valuation of the National Health Insurance Scheme was adopted and led quality improvements in service
  31.12.2021 NGA153
• The management information system of the national social registry was improved
  31.12.2021 NGA153

Funding gaps / Support the ILO

US$ 2,000,000

Extension of Social Security to Workers in the Informal Economy and Migrant workers

Impact: In Nigeria, more than 50 percent of the labour force are in the informal economy. The existing social protection schemes are not adapted to the situations of workers in the informal economy, as a result workers in the informal economy are not protected against contingencies such as maternity, old age, sickness etc. The project will support the three social security institutions in Nigeria to design scheme for informal workers.

US$ 1,000,000

Improving Social Protection Comprehensiveness Through Institutional Coordination

Impact: Social Protection Programmes are Fragmented, as a result there are little or no coordination among institutions. The lack of institutional coordination as resulted in low comprehensiveness of the system. The project will support institutional coordination through strenghtening and interoperability of Management Information System, and common coordination platforms

US$ 500,000

Institutionalising Social Protection Statistics

Impact: The National Bureau of Statistics has indicated interest to collect social protection statistics to ensure adequate monitoring and evaluation of the social protection programmes. The project once implemented will bring to fore the gender imbalance in coverage and provide for an evidence based gender responsive social protection

US$ 90,000

Strengthened management information system for improved delivery of contribution-based social security

Impact: Impact: N° of persons with better access to social protection (single registry, online application, one stop-service)

Support the ILO

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ILO Experts

Dramane Batchabi

Specialist, Social Protection

Emman Danjuma

National Programme Officer

Ricardo Irra

Social Protection Officer