PenCom Launches Personal Pension Plan to Cover Informal Workers
By Patience Ikpeme
The National Pension Commission (PenCom) has unveiled a redesigned retirement savings scheme known as the Personal Pension Plan (PPP), aimed at bringing tens of millions of informal-sector workers in Nigeria under the country’s pension system.
Director-General of PenCom, Omolola Oloworaran, announced the initiative at the Pension Correspondents Association of Nigeria Annual Conference in Abuja. She was represented by the Head of Corporate Communications, Ibrahim Buwai.
Oloworaran said the PPP replaces the Micro Pension Plan (MPP) introduced in 2019, which had struggled to attract wide participation. According to her, the new plan is a key strategy for closing Nigeria’s pension coverage gap and ensuring inclusive social protection.
“The Personal Pension Plan is designed to respond to the realities of Nigeria’s informal economy,” she said. “We estimate that between 70 and 80 million workers currently operate outside formal pension coverage, and that represents a major national vulnerability.”
She noted that earlier efforts had only attracted about 200,000 contributors and generated around $1 billion in assets—figures that fall far short of the nation’s needs. The redesigned scheme, she explained, directly targets artisans, traders, gig workers, freelancers, and market operators who make up a large portion of the workforce but lack access to structured retirement savings.
Under the PPP, contributors aged 18 and above can make flexible payments at their convenience. Each contribution will be divided into two parts—one for emergency savings and the other for long-term retirement benefits.
“Digitization is at the heart of this new initiative,” Oloworaran stated. “Contributors will receive instant payment confirmations and have real-time access to their accounts through mobile-friendly platforms.”
Pension Fund Administrators (PFAs) and Accredited Pension Agents are also expected to use digital tools to streamline registration and participation, while contributions will be invested through dedicated structures offering conservative and growth options tailored to individual preferences.
PenCom said the new plan will 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.
Oloworaran called on journalists to play a role in raising awareness about the PPP. She urged informal-sector workers to embrace the opportunity, assuring them that “with the Personal Pension Plan, every Nigerian worker—no matter their occupation—can now look forward to a secure and reliable retirement.”
