Nigeria Needs an Efficient Unemployment Insurance Scheme As The Nature of Work Evolves Globally

I do not know the possibility but we may still have the time before the current session of the Nigerian parliament concludes. Yes, I have posited that Nigeria should have an improved unemployment insurance scheme – “cash benefits payable to individuals with respect to their unemployment” –  where people who lose their jobs can be paid a certain amount for 6 months, after they have worked consistently for a couple of years, and paid into the pool. 

As the painful paralysis of unemployment, arising out of layoffs,  ravages homes and families around the world, we’re learning that losing a job is no more because of lack of competence. Rather, there are many reasons competent, efficient, dutiful and amazing people could be asked to go these days. And if that happens, how can we ensure parents can put food on the table, sons and daughters can afford basic things they need, and indeed, life can go on, untethered wholly on an immediate job.

I am a democrat, and I dream of a time when where we work or the job we hold will not define our status in the society. And if we extrapolate, the job we hold or company we work for or not work, will not drastically affect what it means to be a human. That someone has lost a job must not mean that a person’s life should pause!

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The United States has a decent system  but Nigeria has none of value. Fascinatingly, I do not think the government should lead this process in Nigeria. I am hoping that we can have an ordinance, enacted by the National Assembly, to enable private companies to offer products with mandatory requirements for companies and workers, regulated by a government agency. Note: this is not pension; this is unemployment insurance.

As we continue to see turbulence in the world of business, we’re entering an age where being out of work, seasonally, will become common – and if that is the norm, Nigeria must have policy tools to help workers recover. The big part: this unemployment insurance payout will be  money the workers have contributed into the pool when they were working, implying that the government is not doing any saraka or giveaway.

Unemployment insurance (UI), also called unemployment benefits, is a type of state-provided insurance that pays money to individuals on a weekly basis when they lose their job and meet certain eligibility requirements.

Those who either voluntarily quit or were fired for a just cause are usually not eligible for UI. In other words, someone separated from their job due to a lack of available work and at no fault of their own usually qualifies for unemployment benefits.

Each state administers its own unemployment insurance program, despite it being federal law. Workers must meet their state’s work and wage requirements, including time worked. The benefits are primarily paid out by state governments and funded by specific payroll taxes collected for that purpose. (Investopedia)

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