PenOp Strategies to attract 49mn Nigerians into MPP
By Patience Ikpeme
The Association of Pension Fund Operators is currently devising strategies to ensure that approximately 49 million Nigerians in the informal sector participate in the Micro Pension Plan (MPP).
This plan was launched by the previous administration to allow individuals in the informal sector to partake in the Contributory Pension Scheme (CPS), thus enabling them to save for their retirement.
Mrs. Aisha Dahir-Umar, the Director General of the National Pension Commission, acknowledged that due to the current economic difficulties, people are less inclined to make voluntary contributions.
Nonetheless, regulatory bodies are implementing measures to ensure that investments are not affected by key economic indices, specifically inflation.
The PenCom DG, through Mr. Ibrahim Buwai, a member of the commission, stated that the organization is working towards making inflation index investments a reality and is collaborating with the Debt Management Office on inflation index bonds that will be unaffected by the rising inflation rate in the country.
Oguche Aguda, the Chief Executive Officer of PenOP, declared that Nigeria has a substantial informal sector with many workers.
“To ensure that this group can save for their future, the implementation of the Micro Pension Plan must be robust” he said.
The association has also introduced a compounded interest plan and a 40% contingency withdrawal plan as an added benefit for its members.
Furthermore, PenOP is in the process of extending the benefits of micro pensions plans to include health insurance coverage.
As long as one saves from their micro pension account, they will become eligible for health insurance benefits.
