A report published by International Financial Corporation (IFC) and the Nigerian Exchange (NGX) Limited has revealed that only 5% of Nigeria’s private sector employers invest in childcare despite 67% of working parents reporting that they were more productive at work when they had easier access to childcare.
According to Nairametrics, the new report themed: ‘Investing in Childcare: A Game Changer for Businesses and the Nigerian Economy’ also found that improving family-friendly workplace policies in Nigeria, including access to quality childcare for parents, could boost private sector productivity and benefits employees, children, and businesses in the country.
According to the study, investing in childcare by offering on-site or near-site childcare services, or the financial support to access childcare, presents an opportunity for employers to improve employees’ productivity, reap efficiency improvements, and boost business outcomes.
The report estimates that by 2025, the demand for childcare services in Nigeria’s private sector is likely to increase by 10%.
Barriers to meeting the growing demand
However, childcare providers face barriers to scaling and meeting the growing demand, especially because they lack access to formal capital and investments.
The study found that 76% of childcare providers faced challenges in accessing formal financing, highlighting an opportunity for partnerships and investments in addressing market gaps.
Commenting on the report, Temi Popoola, Chief Executive Officer, of Nigerian Exchange (NGX) Limited, said that access to effective and affordable childcare is vital to ensuring a productive, engaged, and inclusive workforce.
“This report presents a compelling business case for stakeholders, both in the capital market and the broader private sector, to step up actions and collaborate on crucial measures to improve workplace solutions for childcare, as it will benefit companies, employees, and the overall economy,’’ he said.
Childcare and family-friendly work policies are often overlooked aspects of social and economic development—but they shouldn’t be,” said Dahlia Khalifa, IFC Director for Central Africa, Liberia, Nigeria, and Sierra Leone. “This report reinforces the value of expanding family-friendly workplace policies in Nigeria to support social and economic development.”
What You Should Know
According to a statement from the NGX, unveiled on the sidelines of the Africa CEO Forum in Abidjan, the report assessed the needs and challenges of 7,000 stakeholders, including employees, employers, and childcare providers. Demand for childcare in Nigeria is forecast to increase rapidly along with the country’s population.
The Exchange noted that the report’s research covers six commercial hubs in Nigeria: Enugu, FCT-Abuja, Kano, Lagos, Ogun, and Rivers. The report was funded by the IFC-led Nigeria2Equal Initiative, launched in 2020 in partnership with Nigerian Exchange (NGX) Limited to increase women’s participation in the private sector.
Through the initiative, IFC and NGX are working with private sector companies listed on the Exchange to implement gender-smart solutions that reduce gender gaps across leadership, employment, and entrepreneurship.
