Nigeria’s pension regulator is making a fresh push to secure the future of its informal workforce.
The National Pension Commission (PenCom) will scrap its underperforming Micro Pension Plan and launch a redesigned Personal Pension Plan.
When PenCom introduced the Micro Pension Plan in 2019, it aimed to capture millions of traders, artisans, drivers and entertainers.
However, the scheme struggled; it attracted only about 200,000 contributors and managed assets worth just one billion naira.
Technology To Drive Enrolment
Speaking at the Nigerian Association of Insurance and Pension Editors’ annual conference, PenCom’s director-general, Omolola Oloworaran—represented by head of Corporate Communications, Ibrahim Buwai—admitted the plan had failed to connect.
Therefore, the regulator will roll out a new version tailored to diverse groups in the informal economy, including artisans, professionals, entertainers and sportspeople.
Furthermore, PenCom will remove onboarding barriers.
Instead of lengthy procedures, contributors will sign up through technology-driven options such as point-of-sale terminals.
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In addition, the commission plans to introduce a “Super Agent Model” in collaboration with Pension Fund Administrators, ensuring wider and faster enrolment.
Pension Funds For Growth
At the same time, PenCom will direct pension funds into infrastructure, private equity and other ventures.
By doing so, the commission hopes to strengthen economic growth while also protecting contributors’ purchasing power and giving retirees meaningful returns.
Ultimately, PenCom’s overhaul promises not just a new pension plan, but also a renewed chance for millions in Nigeria’s informal sector to build security for their retirement.
