By using super agents and financial technology platforms to streamline onboarding into the nation’s redesigned Personal Pension Plan, the National Pension Commission has announced new initiatives to increase pension coverage in Nigeria’s sizable informal sector.
The project was unveiled at the Nigerian Association of Insurance and Pension Editors’ 2025 Annual Conference, which has as its theme “Strengthening Insurance and Pension Frameworks for Better Economy.”
The Micro Pension Plan’s acceptance has been minimal since its inception in 2019. The program has not taken off among Nigeria’s millions of unorganised workers, despite having roughly 200,000 contributors and N1 billion in assets under administration.
Onboarding challenges have been a significant obstacle to the scheme’s expansion, according to PenCom Director-General Mrs. Omolola Oloworaran, who was represented by Mr. Ibrahim Buwai, Head of Corporate Communications.
Most people agree that the majority of workers are employed in the unorganised sector. How can they be included in the contributory pension plan? In a nation like Nigeria, where the social safety net is inadequate, this is even more crucial. What will be useful is a pension, Buwai stated.
PenCom is rebranding the Micro Pension Plan as the Personal Pension Plan in order to address these issues. To represent the diversity seen in the unorganised sector, the new plan will be divided into three groups.
Buwai claims that the strategy encompasses not just small-scale dealers or craftspeople but also independent contractors, athletes, and other self-employed people.
“Resolving onboarding issues is the most crucial step. We’re looking into technology-enabled registration, among other things. Our goal is to make the process as easy as making a deposit or withdrawal using a PoS terminal,” he said.
PenCom revealed that the regulator is thinking about using certified Super Agents to manage onboarding on behalf of Pension Fund Administrators due to the expanding involvement of fintechs in Nigeria. In order to accomplish that goal, Buwai continued, “this speaks to the issue that we need to license Micro Pension PFAs.”
Through the integration of technology and agent networks, the commission aims to remove obstacles that keep millions of workers in the informal sector from saving for their retirement.
PenCom is reevaluating its investing methods in addition to broadening its coverage. According to Buwai, the commission is working harder to direct pension funds towards private equity and infrastructure. This strategy aims to strike a balance between Nigeria’s objectives for economic growth and the requirement to protect contributors’ actual returns, particularly in light of growing inflation.
Mr. Adetunbi Ashaye, Head of Operations at Pathian Partners Limited, stressed the value of financial education at a panel discussion in order to boost trust in Nigeria’s Contributory Pension Scheme. He noted that some retirees ask to take their whole retirement fund out of fear that their monthly stipends will be insufficient.
“Many Nigerians consider pensions insignificant because of immediate needs like food, shelter, and clothing. However, we need to simplify, digitise, and diversify the Micro Pension Plan to make it more attractive and accessible.” Ashaye explained that the system is now funded through contributions from employers and employees, making it trackable and highly regulated. “People forget that pension reforms came about because the old system was unfunded, and many retired without getting anything.”
Under the Contributory Pension Scheme, the Micro Pension Plan—now known as the Personal Pension Plan—allows self-employed people and employees of small businesses with fewer than three employees to contribute to retirement savings. Millions of Nigerians are anticipated to join the pension system as a result of the redesign and planned partnerships with fintechs and Super Agents, extending social protection in a nation with a low rate of formal employment. PenCom hopes that the Personal Pension Plan will succeed where the Micro Pension Plan failed, guaranteeing that athletes, entertainers, artisans, and other informal workers can retire with financial security and dignity.
