The National Pension Commission (PenCom) is intensifying efforts to bring Nigeria’s massive informal workforce—estimated at 70 to 80 million people—into the country’s retirement savings net. Speaking at the Annual Conference of the Pension Correspondents Association of Nigeria, Director-General Omolola Oloworaran said the revamped micro-pension scheme, now rebranded as the Personal Pension Plan (PPP), is designed to close Nigeria’s widening pension gap and ensure long-term financial security for informal workers.
Represented by the Head of Corporate Communications, Ibrahim Buwai, Oloworaran explained that the previous Micro Pension Plan, introduced in 2019, struggled due to structural limitations and low adoption. With only about 200,000 contributors and roughly $1bn in assets, she described the earlier progress as “far below the scale of the challenge,” given the millions of artisans, traders, freelancers, gig workers, market operators, and micro-entrepreneurs who power Nigeria’s daily economy yet remain unprotected.
The redesigned Personal Pension Plan aims to address these gaps by offering flexibility to workers with irregular incomes. The scheme allows individuals from age 18 to join, supports multiple digital payment channels, and splits each contribution into an emergency savings portion and a long-term retirement portion—ensuring contributors can access funds when needed without disrupting their retirement plan. Oloworaran emphasized that PenCom is prioritizing digitisation to boost trust, providing instant contribution notifications and real-time access to statements.
Industry operators also voiced strong support for the initiative. Acting CEO of the Pension Fund Operators Association of Nigeria, Ms. Anthonia Ifeanyi-Okoro, said the PPP is essential for closing the long-standing pension gap that has left millions excluded. She noted that despite the success of the 2004 pension reforms, the informal sector—which represents over 80% of Nigeria’s workforce—remains largely outside the Contributory Pension Scheme. The PPP, she said, offers a practical, technology-driven pathway to inclusion, empowering informal workers to transition from pension outsiders to active participants.
The President of the Pension Correspondents Association of Nigeria, Nana Musa, added that the urgency of expanding pension coverage cannot be overstated. She praised PenCom for ongoing reforms but stressed the need for greater awareness, trust-building and user-friendly enrolment systems. Data from PenCom shows growing interest: the Personal Pension Plan’s assets have increased steadily from N185.18m in 2021 to N1.58bn as of August 2025. Regulators say the PPP—now part of PenCom’s Pension Revolution 2.0—will play a critical role in improving national financial inclusion and securing dignified retirements for millions of Nigerians.
source: punch