The National Pension Commission (PenCom) has disclosed that 12,241 Retirement Savings Account (RSA) holders in the informal sector have contributed N967.19 million between 2020 and the third quarter of 2024 through the Micro Pension Plan (MPP). This information was revealed in PenCom’s newly launched Pension Industry Performance Dashboard, which provides key pension statistics in an accessible format. The Micro Pension Plan was introduced in 2019 under the Pension Reform Act 2014 to extend the benefits of the Contributory Pension Scheme (CPS) to self-employed individuals and workers in small businesses.
A recent study by Jobberman Nigeria and the Mastercard Foundation highlighted that the informal sector accounts for 76.7% of Nigeria’s workforce, underscoring its economic significance. According to PenCom’s dashboard, micro pension registrations have reached 164,031 since inception, with the number of funded RSAs growing by 5,971 between 2020 and Q3 2024. The total savings in these RSAs have surged from N89.13 million in 2020 to N967.19 million, representing an N878.07 million increase.
The data further shows steady growth in micro pension registrations, rising from 6,270 in 2020 to 8,950 in 2023 before experiencing a 36.77% increase in 2024. Similarly, contributions into funded RSAs have expanded significantly, reaching N224.05 million in 2021, N368.03 million in 2022, N680.16 million in 2023, and nearing the N1 billion mark by Q3 2024. This trend indicates increasing participation and awareness among informal sector workers.
At a PenCom workshop in December 2024, Director-General Omolola Oloworaran announced plans to remodel the micro pension scheme to attract more participants. She acknowledged that the current plan does not appeal to all informal sector workers, with some high earners rejecting the “micro” classification. The revamped scheme aims to cater to workers across different income levels and professions, including artisans, farmers, and security personnel.
Oloworaran also emphasized the need for operators to actively promote the scheme, citing technology as a critical factor in expanding coverage. With over 70 million Nigerians in the informal sector, PenCom aims to onboard at least 20 million participants through digital solutions and improved engagement strategies. The commission remains committed to ensuring broader pension coverage and financial security for informal sector workers.
Source: Punch