The National Pension Commission (PenCom) has unveiled fresh strategies to expand pension coverage in Nigeria’s vast informal sector through the redesign of its Micro Pension Plan. The rebranded initiative, now called the Personal Pension Plan, will leverage super agents and fintech platforms to make onboarding faster and easier for millions of self-employed Nigerians.
The development was announced 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 introduction of the Micro Pension Plan in 2019, participation has remained low. Current records show about 200,000 contributors and assets under management of roughly N1 billion,figures that fall short of expectations given Nigeria’s large pool of informal workers. PenCom acknowledges that the most critical barrier has been the complexity of registration and contribution processes.
Speaking at the event, PenCom’s Director-General, Mrs. Omolola Oloworaran,represented by the Head of Corporate Communications, Mr. Ibrahim Buwai,emphasised the urgency of capturing informal workers under the contributory pension system. “The consensus is that most of Nigeria’s labour force resides in the informal sector. The question is, how do we bring them into the contributory scheme, especially in a country with a weak social safety net? Pension remains a critical fallback,” he said.
Under the redesigned plan, the Personal Pension Plan will feature three distinct categories to reflect the diversity of informal occupations. Buwai stressed that the scheme goes beyond artisans and petty traders, extending to entertainers, sports professionals, and other self-employed groups.
A major part of the reform is simplifying onboarding through digital channels. According to Buwai, PenCom envisions a process as seamless as using a PoS terminal for cash transactions. To this end, the commission plans to harness the capacity of licensed super agents and fintech platforms to register contributors on behalf of Pension Fund Administrators (PFAs). “We are looking at licensing Micro Pension PFAs to strengthen this model and make the scheme more inclusive,” he explained.
Beyond expanding access, PenCom is also reviewing how pension funds are invested. The commission is working to increase allocations into infrastructure projects and private equity, balancing the dual goals of supporting economic growth and protecting contributors’ funds against inflation.
Stakeholders at the conference stressed the importance of financial literacy in building trust in the pension system. Mr. Adetunbi Ashaye, Head of Operations at Pathian Partners Limited, noted that some retirees demand lump-sum withdrawals at retirement due to fears that monthly stipends may not sustain them. He reminded participants that pension reforms were designed to correct the failures of the old, unfunded system. “The current scheme is funded, trackable, and regulated. The real task is educating Nigerians on its value,” he said.
Ashaye further argued that immediate survival needs often overshadow long-term planning, making pensions appear less attractive. He called for more digitisation, simplification, and diversification to ensure wider adoption.
The rebranded Personal Pension Plan remains under the Contributory Pension Scheme, allowing self-employed individuals and employees of small businesses with fewer than three workers to build retirement savings. By integrating technology, agent networks, and education campaigns, PenCom aims to bring millions into the pension net and reduce Nigeria’s dependence on informal survival mechanisms in old age.
With stronger structures in place, the commission hopes the Personal Pension Plan will achieve what the Micro Pension Plan could not,offering informal sector workers, from artisans to athletes, the opportunity to retire with greater dignity and financial security.
