BY VICTOR AHIUMA-YOUNG
VICE-CHANCELLOR of Joseph Ayo Babalola University, JABU, Ikeji-Arakeji, Osun State, Professor Sola Fajana, has called for a new pension law to take care of workers in the informal sector of the Nigerian economy.

Delivering a paper on “A critique of regulatory authorities in the Financial industry: The need for decent work agenda”, organized by Association of Senior Staff of Banks, Insurance and Financial Institutions, ASSBIFI, to mark the World Decent Work, Prof Fajana, argued that the 2004 Pension Reform Act had envisaged that this category of workers would participate in a voluntary contributory scheme, but noted that the reverse had been the case.

Represented by Mr. Ranti Samuel, a Lecturer in Lagos State University, LASU, Ojo, Lagos, JABU Vice-Chancellor also decried the plight of senior citizens in the country and called for strategic mechanisms for taking care of the needs of people in their old age both now and in the future.

According to him, “the proportion of people who are aged less than 45 is put at about 87.8 percent. The proportion of citizens aged 60 and above is only 7.7 percent (1991 Census). It is expected that as global health fortunes diffuse to African countries, the size of senior citizens is expected to increase in the future on account of increasing life expectancy. It is logical therefore to consider strategic mechanisms for taking care of the needs of people in their old age both now and in the future.”

“More seriously, the contemporary plight of people aged 60 and above, who mostly have retired from the formal sector salary or wage employment, or even self-employment or other activities as small scale farmers and artisans is pitiable on account of historical neglect through the absence of any meaningful policy and practice of social security for this group of Nigerians.”

“Should this situation be allowed to continue, Nigeria would have succeeded in perpetuating a situation of penury for its retired workers directly, and indirectly it would have put at jeopardy the welfare of several other dependants who rely on the fortune of retirees to eke out a living for themselves.”

He said, “The informal sector accounts for about 70 percent of the workforce in Nigeria. The future and life retirement of these workers who currently have no organised pension plan is worrisome.

The 2004 Pension Reform Act had envisaged that this category of workers would participate in a voluntary contributory scheme.”

” A new law is possibly now required for this category on account of the poor response so far recorded. The poor response1 is due to lack of incentives, paucity of data, and absence of collection/payment platforms, among others.”