The new report, Investing in Childcare: A Game Changer forBusinesses and the Nigerian Economy, found that only 5 percent of Nigeria’s
private sector employers invest in childcare despite 67 per cent of working parents
reporting that they were more productive at work when they had easier access to
childcare.
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 the 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 per cent.
However, childcare providers face barriers to scale and meet the growing
demand, especially because they lack access to formal capital and investments.
The study found that 76 per cent 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, 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 in expanding family-friendly
workplace policies in Nigeria to support social and economic development.”
Launched 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 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.