PenCom targets 80m informal workers with new PPP scheme

Barbara Bako, Abuja.

The National Pension Commission (PenCom) says it is aiming to bring as many as 80 million informal-sector workers into Nigeria’s pension net through its reengineered Personal Pension Plan (PPP).

PenCom Director-General, Ms. Omolola Oloworaran, who was represented by PenCom’s Head of Corporate Communications, Mr. Ibrahim Buwai disclosed this in a keynote address at the Annual Conference of the Pension Correspondents Association of Nigeria (PENCAN).

She reaffirming the Commission’s commitment to ensuring that every Nigerian whether formally employed or not has access to a secure and dignified old age.

Oloworaran noted that the informal sector made up of artisans, traders, freelancers, gig workers, farmers, and creative professionals remains largely uncovered.

“Nigeria’s informal workforce is estimated at between 70 and 80 million people. Under-coverage in this segment means that the promise of retirement security remains a dream rather than a reality for many,” she said.

She explained that the earlier Micro Pension Plan launched in 2019 recorded only modest uptake, with about 200,000 contributors and assets of roughly N1 billion.

The Commission has now restructured the scheme under the name Personal Pension Plan (PPP) to scale inclusion, enhance flexibility, and leverage technology.

“For many in the informal sector, pension participation has been hindered by limited awareness, cumbersome registration processes, irregular income patterns, and the misconception that pensions are reserved for formal-sector workers,” she noted.

She added that the PPP’s design built on flexible contributions, simplified digital onboarding, and transparent administration is expected to significantly deepen financial inclusion.

Oloworaran said “With this approach, we anticipate a significant increase in pension coverage among informal-sector workers… and improved retirement security for millions of Nigerians who previously lacked access to a structured pension system.”

Read also:NAICOM, Interior Ministry partner to curb repatriation costs

Acting CEO of the Pension Operators Association of Nigeria (PenOp), Ms. Anthony Ifeanyi-Okoro, said Nigerians must view pensions as “social contracts” that convert decades of labour into dignity and independence in old age.

She highlighted reforms introduced through the Pension Reform Act of 2004 and its 2014 amendment, noting that the transition from the old Defined Benefit system to the Contributory Pension Scheme (CPS) strengthened transparency and provided sustainability.

She emphasised that despite gains under the CPS, large segments of micro-entrepreneurs, farmers, traders, artisans and gig workers remain excluded, adding that the PPP provides a practical pathway to expand coverage.

“Supported by consumer education, efficient technology, and trusted distribution partners — it will turn millions of informal workers from pension outsiders into pension participants,” she said.

Earlier in her welcome remarks, President of PENCAN, Nana Musa, commended PenCom and operators for ongoing reforms but said more work is needed in awareness creation, trust-building, and policy incentives to encourage enrolment.

She said this year’s conference theme, Inclusion and Innovation: Bridging the Pension Gap for Nigeria’s Informal Sector, reflects the urgency of expanding coverage, as the informal sector accounts for more than 80 per cent of Nigeria’s workforce.

“Closing this gap is central to achieving sustainable social security, reducing poverty, and promoting inclusive growth,” she said.

Musa added that PENCAN sees itself not just as a reporting body but “a partner in national development… in the collective quest for a secure retirement for every Nigerian worker.”