PenCom, Civil Society Push Pension Awareness as a Right
…Roll Out Personal Pension Plan
By Patience Ikpeme
The National Pension Commission (PenCom) has called for stronger collaboration with civil society organisations to deepen public understanding of pensions as a fundamental right and a safeguard for dignity in old age, rather than a tax, donation or privilege.
This call was made by the Director General of PenCom, Ms Omolola Oloworaran, on Tuesday in Abuja at the 2025 Conference for Civil Society Groups, where she urged non-governmental actors to play a more active role in building trust and expanding pension coverage across the country.
Oloworaran, who was represented at the conference by the Director of the Contributions and Bonds Redemption Department, Usman Musa, said the Commission’s engagement with civil society was central to the success of its reform agenda under Pension Revolution 2.0.
“Together, the National Pension Commission and civil society organisations must help Nigerians understand that pension is not a tax, not a donation and not a privilege, but a right and a tool for dignity in all ways,” she said.
She explained that as PenCom enters a new phase of reforms, its objectives remain focused on widening coverage, strengthening confidence in the system, improving investment outcomes, tightening supervision and safeguarding retirees’ interests.
“Our purpose remains clear. Expand coverage, build trust, improve investment outcomes, strengthen supervision and protect retirees,” Oloworaran said, adding that civil society groups were critical allies in driving awareness, promoting inclusion among vulnerable groups and serving as advocates for transparency and accountability within the pension system.
Reflecting on the Commission’s activities over the past year, Oloworaran said decisive steps had been taken to improve governance and transparency across the industry, stressing that pension administration could no longer operate behind closed doors.
“Pensions cannot be managed from the shadows. To this end, we have strengthened governance rules to eliminate shadow directors,” she said.
According to her, transparency, integrity and sound leadership were essential in managing what she described as the nation’s “lifesavers,” noting that one of the most far-reaching reforms in the last year was the restructuring and rebranding of the micro-pension plan into the Personal Pension Plan.
“From macro-pension to personal pension plan, distinguished ladies and gentlemen, one of the most defining reforms of the past year is the restructuring and rebranding of the micro-pension plan into the personal pension plan,” she said.
Oloworaran explained that the reform was designed to bring pension services closer to Nigerians in the informal economy, including artisans, traders, gig workers, creatives, farmers and transport workers, many of whom face income uncertainty despite years of hard work.
She described the Personal Pension Plan as a simple, flexible and inclusive framework that allows self-employed individuals and informal sector workers to make additional voluntary contributions toward their retirement. She noted that a major innovation under the scheme was the introduction of accelerated pension payments and the deployment of accredited pension agents to market and onboard participants.
“These agents are not merely distribution channels,” she said. “They are also an employment strategy.”
According to her, the initiative is expected to create thousands of jobs by training, certifying and engaging young Nigerians as pension professionals, while also extending pension coverage to rural and underserved communities.
“This is financial inclusion with impact, inclusion that creates jobs,” she added.
Participation in the Personal Pension Plan, she said, has been deliberately simplified to encourage wider uptake, with eligibility open to any Nigerian aged 18 and above using basic identification details such as a National Identification Number, name and a valid phone number.
Oloworaran also drew attention to what she described as one of the most significant milestones in the sector’s history: the presidential approval and disbursement of ₦758 billion to settle outstanding pension liabilities.
“This unprecedented intervention sent a clear and powerful message that Nigeria honours its promises to its workers and retirees,” she said.
She disclosed that long-standing pension increases owed to federal government treasury-funded retirees, some dating back to 2007, had now been fully paid, overturning years of scepticism about whether such arrears would ever be cleared.
“What many believed would never be paid has now been paid,” she said.
In addition, Oloworaran announced the restoration of zero waiting time for the payment of approved pension rights, with effect from July 2025, noting that retirees now receive their benefits promptly upon retirement.
“To further enhance benefit adequacy, we introduced Pension Plus 1.0, which has already added ₦2.68 billion to monthly pension payments for retirees,” she said. “These are not just numbers. They represent meals on the table, medicines purchased and dignity deserved.”
Earlier, the Acting Director of the Corporate Communications Department of PenCom, Ibrahim Buwai, said the Commission had made remarkable progress in resolving challenges that previously plagued the contributory pension scheme, particularly delays in benefit payments.
“We are grateful that as we hold this conference this year, unlike last year, there are no longer delays in the payment of pensions to retirees of federal government agencies,” Buwai said.
He stated that all retirees now receive their benefits in the same month they exit service, describing the eradication of payment delays as a major institutional achievement.
“Everybody who retires now gets paid in the very month that they retire. That challenge has now been totally extinguished,” he said.
Buwai also confirmed that pension increases outstanding since 2007 had been fully settled, commending the leadership and technical teams responsible for restoring confidence in the system.
He added that participants at the conference would be exposed to the redesigned pension product, noting that the former micro-pension plan had been transformed into a “totally brand new product” under the Personal Pension Plan framework.
As deliberations continued at the conference, PenCom urged civil society organisations to sustain advocacy and grassroots engagement to ensure that pension reforms translate into improved welfare, inclusion and dignity for Nigerian workers, both in formal employment and beyond.
