The National Pension Commission has unveiled new measures to boost pension inclusion in Nigeria’s informal sector by partnering with super agents and fintech platforms to streamline enrollment into the revamped Personal Pension Plan.
The disclosure 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 the Micro Pension Plan was introduced in 2019, participation has been limited, with only about 200,000 contributors and N1bn in assets under management—far below expectations for a sector employing millions.
PenCom Director-General, Mrs. Omolola Oloworaran, represented by the Head of Corporate Communications, Mr. Ibrahim Buwai, admitted that onboarding challenges have hindered the scheme’s growth.
“The consensus is that the labour force largely resides in the informal sector. How do we bring them into the contributory pension scheme? This is even more important in a country like Nigeria, where the social safety net is weak. Pension is what will come in handy,” Buwai said.
PenCom is rebranding the Micro Pension Plan as the Personal Pension Plan, introducing three categories tailored to the varied needs of informal sector workers.
Buwai noted that the scheme is designed not only for artisans and small traders but also for entertainers, athletes, and other self-employed professionals.
“The most important thing is to address onboarding challenges. Technology-enabled registration is part of what we are looking at. Our aim is to make the process as simple as using a PoS terminal to withdraw or deposit money,” he stated.
PenCom revealed that, given the rising influence of fintechs in Nigeria, it is exploring the use of licensed Super Agents to manage onboarding on behalf of Pension Fund Administrators.
“This speaks to the issue that we need to license Micro Pension PFAs so that this model will enable us to achieve that purpose,” Buwai added.
By leveraging technology and agent networks, PenCom aims to remove barriers that have kept millions of informal sector workers from participating in retirement savings.
In addition to widening coverage, the commission is reassessing its investment strategies. According to Buwai, greater focus is being placed on channeling pension assets into infrastructure and private equity—an approach intended to align with national development priorities while protecting contributors’ real returns in the face of rising inflation.
Speaking during a panel session, the Head of Operations at Pathian Partners Limited,
Mr. Adetunbi Ashaye, stressed the need for financial education to build trust in the Contributory Pension Scheme.
He noted that many retirees opt to withdraw their entire savings at once, driven by concerns that monthly pensions may be inadequate.
“People forget that pension reforms came about because the old system was unfunded, and many retired without getting anything. Now, the system is funded through contributions from employers and employees, making it trackable and highly regulated,” Ashaye noted.
