The National Pension Commission (PenCom) has intensified efforts to bring Nigeria’s informal-sector workers into the country’s retirement savings system, with the revamped Personal Pension Plan (PPP) seen as key to closing the widening pension gap.
Speaking at the Annual Conference of the Pension Correspondents Association of Nigeria in Abuja, PenCom Director-General Omolola Oloworaran, represented by Head of Corporate Communications Ibrahim Buwai, said the redesigned scheme addresses the limitations of the Micro Pension Plan launched in 2019.
Oloworaran highlighted that Nigeria’s informal workforce, estimated at 70 to 80 million people, largely lacks access to structured retirement savings. She noted that the previous micro-pension initiative attracted only about 200,000 contributors and $1 billion in assets, far below the scale of the challenge.
She emphasised that artisans, traders, gig workers, freelancers, and market operators, who drive the nation’s economy, remain largely excluded from pension protection.
The PPP is tailored for workers with irregular incomes, allowing participation from age 18, flexible digital contributions through multiple channels, and automatic splitting of contributions into an emergency and long-term savings portion.
Oloworaran stressed that digitisation is central to the plan, allowing instant acknowledgement of contributions and real-time access to statements. Pension Fund Administrators and Accredited Pension Agents will deploy mobile-friendly technology solutions to simplify onboarding.
The scheme also offers dedicated investment structures with conservative and growth options, aiming to mobilise long-term domestic capital, deepen financial inclusion, and provide dignified retirement outcomes for millions currently outside the formal system.
At the conference, Acting CEO of the Pension Fund Operators Association of Nigeria, Anthonia Ifeanyi-Okoro, described the PPP as “a practical pathway to inclusion,” bridging the gap for informal workers who were previously excluded from the contributory pension system.
President of the Pension Correspondents Association, Nana Musa, stressed that over 80 per cent of Nigeria’s workforce remains in the informal sector and largely outside social protection. He noted the conference aims to engage regulators, operators, policymakers, labour unions, and the media on expanding pension participation.
PenCom data shows the PPP has grown from ₦185.18 million in August 2021 to ₦1.58 billion in August 2025, reflecting steady progress in participation and asset accumulation. The rebranding from the Micro Pension Plan aims to further boost enrolment among informal workers and voluntary contributions from formal employees.
