PenCom Reaffirms Commitment to Expanding Pension Coverage for Nigeria’s Informal Sector

The Director General of the National Pension Commission, PenCom, Ms. Omolola Oloworaran has reaffirmed the Commission’s commitment to ensuring that every Nigerian, including those in the informal sector, have access to a secure and dignified retirement. She made this known while delivering the keynote address at the Annual Conference of the Pension Correspondents Association of Nigeria, PENCAN, themed “Inclusion & Innovations: Bridging the Pension Gap for Nigeria’s Informal Sector.”
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‎The DG who was represented by the Head, Corporate Communications Department, Mr. Ibrahim Buwai expressed appreciation to PENCAN for its continuous partnership in promoting public education and enlightenment on the Contributory Pension Scheme, CPS.

He described the theme of the conference as both timely and crucial, given the urgent need to bring informal sector workers into the nation’s pension framework.
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‎Mr. Buwai noted that while the formal sector remains important, it represents only a fraction of Nigeria’s workforce, with millions of citizens earning their livelihoods through informal activities such as trading, farming, craftwork, and freelance services. Many of these workers, she observed, still lack access to structured pension arrangements.
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‎He explained that to address this gap, PenCom has re-engineered the Micro Pension Plan into a more inclusive and innovative Personal Pension Plan, PPP, launched under the broader Pension Revolution 2.0.

Mr. Buwai said the new plan is built on five strategic pillars designed to simplify participation and enhance flexibility.
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‎In a welcome address, the Acting CEO  Pension Fund Operators Association of Nigeria, PenOp Ms. Anthonia Ifeanyi-Okoro reaffirmed the importance of the newly launched Personal Pension Plan, PPP, as a strategic innovation to extend retirement security to Nigeria’s vast informal sector.

She described pensions as social contracts 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.
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‎Ms. Ifeanyi-Okoro noted that the Pension Reform Act of 2004 and its 2014 amendment laid the foundation for a more transparent and sustainable pension structure, transitioning Nigeria from the fiscally unstable pay-as-you-go system to the Contributory Pension Scheme, CPS.

“While this reform strengthened governance and asset growth, millions of informal workers including traders, farmers and skilled workers remain excluded from formal pension coverage, underscoring the urgency of expanding participation.
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‎The PenOp CEO while highlighting the features of the PPP, 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.
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‎On her part, the President, Pension Correspondents Association of Nigeria, PENCAN, Mrs. Nana Musa, advocated for renewed efforts to expand pension coverage to Nigeria’s informal sector, which accounts for over 80 per cent of the nation’s workforce, noting 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.
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‎While applauding PenCom and industry operators for ongoing reforms the PENCAN president noted that more effort was needed in the areas of public awareness, trust building, technology driven enrollment and incentives to encourage informal workers to participate and remain within the pension scheme.
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‎Reaffirming PENCAN’s commitment to deepening public understanding of pension issues, Mrs. Musa said the Association views itself as a key partner in national development. She urged all stakeholders to collaborate in building a more inclusive and sustainable pension system that guarantees a secure retirement for every Nigerian worker.

‎Umbwanko Baba

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