Leveraging financial inclusion and livelihood opportunities to combat child labour in Nigeria

Abuja, Nigeria (ILO News) - Child labour remains a pressing challenge in Nigeria, with over 24.7 million children (39.2%) engaged in child labour, and 14.4 million of them involved in hazardous work, according to the Nigeria Child Labour Survey 2022 (NBS, 2022). Recognizing the urgent need to address the socio-economic root causes of this issue, the International Labour Organization (ILO) launched the Social Finance Component of ACCEL Africa Phase 2 in Abuja, Nigeria, on November 7, 2024. This significant milestone builds on the achievements of the first phase of ACCEL Africa, which demonstrated how livelihood enhancement through access to market and financial inclusion and can serve as powerful tools to combat child labour.

The workshop brought together a diverse group of stakeholders, including government representatives from the Ministry of Labour and Employment, financial service providers (FSPs), development partners, cooperatives, and Village Savings and Loan Associations (VSLAs). The event aimed to raise awareness by highlighting the link between financial inclusion and child labour eradication, showcase achievements by presenting key results from Phase 1 of ACCEL Africa, introduce Phase 2 by outlining the goals and activities of the Social Finance Component, including the Innovation Challenge Fund, and enhance collaboration by encouraging dialogue among stakeholders to co-create sustainable solutions

A strategic focus on leveraging social finance for livelihood enhancement

The launch workshop highlighted the potential of social finance to address the root causes of child labour, particularly in the cocoa and artisanal small-scale gold mining (AGSM) sectors, where child labour is most prevalent. By expanding access to tailored financial products such as savings, credit, and insurance, and by promoting sustainable livelihoods, Phase 2 aims to empower vulnerable families to overcome poverty, mitigate risks, and reduce reliance on child labour. “Eradicating child labour requires systemic solutions,” said ILO National Project Coordinator for the ACCEL Africa Project in Nigeria. “Financial inclusion is critical in breaking the cycle of poverty that perpetuates child labour.”

Key takeaways

The workshop agenda featured a series of insightful presentations and discussions that underscored the multipronged approach of the ACCEL Africa project. The event began with an introduction to ACCEL Africa, providing participants with a comprehensive overview of the project’s objectives, focus areas, and systemic strategy to combat child labour. This was followed by an in-depth presentation on the state of child labour in Nigeria, drawing on key findings from the Nigeria Child Labour Survey 2022 (NBS, 2022). The presentation highlighted the socio-economic drivers of child labour, particularly in rural areas, and emphasized the urgency of addressing these challenges.
A review of Phase 1 achievements showcased the successes in enhancing financial access for vulnerable populations and promoting decent livelihoods in the targeted cocoa and AGSM sectors. This session emphasized the tangible impact of Phase 1 initiatives on reducing child labour. Lastly, participants were introduced to the Innovation Challenge Fund, a key feature of Phase 2, designed to incentivize the development of innovative financial solutions tailored to the specific needs of communities in these sectors. Together, these discussions set the stage for actionable strategies and collabourative efforts to combat child labour through financial inclusion and livelihood enhancement.

Participants emphasized the need for strong partnerships to ensure the success of Phase 2. Discussions centered on scaling financial literacy programs, developing integrated financial products, and leveraging digital platforms to expand financial access in underserved areas. “Together, we can empower communities, address vulnerabilities, and create a future where no child is forced into labour,” a participant remarked.

Looking ahead

The launch of ACCEL Africa Phase 2 marks a pivotal step in the fight against child labour in Nigeria. By addressing the financial vulnerabilities of families and strengthening livelihood opportunities, the project aims to create sustainable pathways to economic stability and child protection. As implementation begins, the ILO and its partners are committed to catalyzing innovative solutions and scaling impactful interventions that contribute to the elimination of child labour. A critical component of this commitment is the planned call for proposals under the Innovation Challenge Fund which will provide catalytic funding for sustainable, scalable, and impactful business models that support the elimination of child labour in the cocoa and AGSM sectors in Nigeria.

About ACCEL Africa Phase 2

The ACCEL Africa project, now in its second phase (2023-2028), aims to accelerate the elimination of child labour in selected supply chains across Africa, including Côte d'Ivoire, Ghana, Kenya, Mali, Nigeria, and Uganda. In Nigeria, the project targets the cocoa and AGSM sectors, leveraging financial inclusion and livelihood enhancement to tackle the root causes of child labour.