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The National Pension Commission (PenCom) has unveiled a redesigned pension scheme aimed at expanding coverage in Nigeria’s informal sector, which makes up the bulk of the country’s workforce. The initiative rebrands the Micro Pension Plan, first introduced in 2019, into the Personal Pension Plan (PPP), with technology and agent networks at the core of its new strategy.
The announcement was made at the 2025 Annual Conference of the Nigerian Association of Insurance and Pension Editors, themed “Strengthening Insurance and Pension Frameworks for Better Economy.”
Since inception, the Micro Pension Plan has struggled to gain traction, recording only about 200,000 contributors and ₦1 billion in assets under management—far below expectations given Nigeria’s vast population of self-employed workers. PenCom acknowledged that complex onboarding processes were a major barrier to adoption.
“The consensus is that Nigeria’s labour force largely resides in the informal sector. How do we bring them into the contributory pension scheme? Pension is what will come in handy, especially in a country with a weak social safety net,” said Mr. Ibrahim Buwai, PenCom’s Head of Corporate Communications, representing Director-General Mrs. Omolola Oloworaran.
The redesigned Personal Pension Plan will feature three stratified categories, recognising the diversity within the informal sector—from artisans and traders to entertainers, sports professionals, and other self-employed individuals.
PenCom plans to leverage fintech platforms and licensed Super Agents to simplify registration and contributions. The commission said the goal is to make signing up for pensions “as simple as using a PoS terminal,” easing entry for millions of informal workers.
Beyond onboarding, PenCom is also reviewing investment strategies. The regulator is exploring ways to channel pension funds into infrastructure and private equity to support economic growth, while ensuring contributors’ funds retain value amid high inflation.
During a panel session, Mr. Adetunbi Ashaye, Head of Operations at Pathian Partners Limited, stressed the importance of financial education in building trust and participation. He noted that many retirees, out of fear of low stipends, still seek to withdraw their entire savings at retirement.
“Pension reforms were introduced because the old system was unfunded and unreliable. The current contributory system is funded, regulated, and trackable. What is needed now is to improve financial literacy and make the system simpler, more digital, and more attractive,” Ashaye said.
The revamped scheme underscores PenCom’s push to expand social protection in a country where formal employment opportunities are limited. By harnessing technology, streamlining processes, and driving awareness, the commission aims to transform the Personal Pension Plan into a more inclusive system—ensuring that artisans, entertainers, athletes, and millions of other informal sector workers can secure dignified retirements.
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