Nigeria’s National Pension Commission (PenCom) has announced that its new reforms are not just about policy but are aimed at reshaping how Nigerians think about their future.
Speaking at the Annual Conference of the Pension Correspondents Association of Nigeria (PENCAN) in Abuja, the Director-General of PenCom, Ms. Omolola Oloworaran said that the latest initiative, the Personal Pension Plan (PPP) is designed to bridge the pension gap for Nigeria’s 80m informal-sector workers and promote a culture of long-term financial security across all segments of society.
“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.
The earlier Micro Pension Plan, launched in 2019, recorded modest uptake — approximately 200,000 contributors and about one billion naira in assets — which is far below the scale of the challenge,” she said.
Oloworaran said, “Consequently, PenCom re-engineered the Micro Pension Plan under a new name the Personal Pension Plan (PPP) to deliver both inclusion and innovation.
The guidelines for the PPP were released as part of the recently launched Pension Revolution.”
The DG, who was represented by the Head, Corporate Communications Department, Mr. Ibrahim Buwai reiterated PenCom’s commitment, saying:
“We are committed to ensuring that every Nigerian, whether formally employed or not, has the opportunity for a secure and dignified old age. Our goal is inclusion through innovation.”
Oloworaran explained that the new plan would not only boost financial inclusion but also help mobilize long-term capital for national development, while guaranteeing dignified retirements for millions of Nigerians currently outside the pension net.
“With this approach, we anticipate a significant increase in pension coverage among informal-sector workers; greater financial inclusion, as they convert irregular earnings into long-term savings; the mobilisation of domestic capital for national development; and, most importantly, improved retirement security for millions of Nigerians who previously lacked access to a structured pension system,” she said.
The Acting CEO of the Pension Fund Operators Association of Nigeria (PenOp), Ms. Anthonia Ifeanyi-Okoro, described the Personal Pension Plan (PPP) as a strategic innovation aimed at extending retirement security to Nigeria’s vast informal sector.
She explained that “pensions are a social contract that transform years of labour into dignity, stability, and independence in old age, emphasizing that a truly inclusive pension system is vital to national resilience and social equity.”
“While past reforms strengthened governance and asset growth, millions of informal workers — including traders, farmers, and artisans — remain excluded from formal pension coverage, underscoring the urgency of expanding participation,” Oloworaran noted.
Highlighting the features of the PPP, the PenOp CEO explained that the initiative introduces lower entry requirements, flexible contributions, and digital platforms to make saving for retirement easier for workers with irregular incomes.
She called for stakeholder collaboration, policy innovation, and widespread public awareness to ensure that every Nigerian, regardless of employment type, can look forward to a secure and dignified retirement.
The President of the Pension Correspondents Association of Nigeria (PENCAN), Mrs. Nana Musa also advocated for renewed efforts to expand pension coverage to Nigeria’s informal sector, which accounts for over 80 percent of the nation’s workforce.
Mrs Musa noted that the theme of the Third Annual PENCAN Conference, “Inclusion and Innovation: Bridging the Pension Gap for Nigeria’s Informal Sector,” was timely, given the urgent need to extend social protection and retirement security to millions of Nigerians outside the formal system.
Mrs. Musa reaffirmed PENCAN’s commitment to deepening public understanding of pension issues and urged all stakeholders to collaborate in building a more inclusive and sustainable pension system that guarantees a secure retirement for every Nigerian worker.