Africa (Commonwealth Union) _ A recent report published by the International Finance Corporation (IFC) and the Nigerian Exchange (NGX) Limited suggests that implementing family-friendly workplace policies in Nigeria, such as providing access to quality childcare for parents, could have significant benefits for the private sector, employees, children, and businesses in the country.
The report, titled “Investing in Childcare: A Game Changer for Businesses and the Nigerian Economy,” reveals that only five percent of private sector employers in Nigeria currently invest in childcare, despite 67 percent of working parents acknowledging that easier access to childcare would enhance their productivity at work.
According to the study, employers can improve employee productivity, achieve efficiency gains, and enhance business outcomes by investing in childcare through initiatives like on-site or near-site childcare services or providing financial support for childcare. The report predicts that the demand for childcare services in Nigeria’s private sector will likely increase by 10 percent by 2025. However, childcare providers face challenges in scaling up and meeting this growing demand, primarily due to a lack of access to formal capital and investments.
The study also found that 76 percent of childcare providers encounter difficulties in accessing formal financing, indicating an opportunity for partnerships and investments to address market gaps.
Temi Popoola, the CEO of the Nigerian Exchange (NGX) Limited, emphasized the importance of effective and affordable childcare in fostering a productive, engaged, and inclusive workforce. He called for stakeholders in the capital market and the wider private sector to collaborate on improving workplace solutions for childcare, highlighting the benefits for companies, employees, and the overall economy.
Dahlia Khalifa, IFC Director for Central Africa, Liberia, Nigeria, and Sierra Leone, emphasized that childcare and family-friendly work policies are often overlooked aspects of social and economic development, despite their significant value. She stressed the need to expand family-friendly workplace policies in Nigeria to support both social and economic development.
The report was launched during the Africa CEO Forum in Abidjan and involved assessing the needs and challenges of 7,000 stakeholders, including employees, employers, and childcare providers. With Nigeria’s population projected to increase rapidly, the demand for childcare in the country is expected to rise accordingly.
