PenCom reaffirms commitment to expanding pension coverage

The Director-General of PenCom, Mrs Omolola Oloworaran, has reaffirmed the commission’s commitment to expanding pension coverage through the new Personal Pension Plan.

She spoke at the annual conference of the Pension Correspondents Association of Nigeria held on Thursday in Abuja.

The conference was with the theme ‘Inclusion and Innovations: Bridging the Pension Gap for Nigeria’s Informal Sector.’

Represented by Head of Corporate Communications, Mr Ibrahim Buwai, she said the plan would ensure every Nigerian, whether employed or self-employed, enjoyed a secure and dignified retirement.

She noted that Nigeria’s informal workforce, estimated at up to 80 million people, remained largely uncovered under the existing pension scheme.

According to her, this gap deprives artisans, traders, freelancers, and gig workers of the benefits of structured retirement savings.

She said under-coverage meant the promise of retirement security remained a distant dream for many Nigerians.

Oloworaran said the Micro Pension Plan launched in 2019 attracted about 200,000 contributors and assets worth N1 billion.

She added that more innovative and inclusive measures were needed to expand pension participation across the country.

She said PenCom had redesigned the Micro Pension Plan into the new Personal Pension Plan under the Pension Revolution 2.0 initiative.

The PenCom DG outlined key PPP features, including broad eligibility for informal and self-employed workers and voluntary contributors in formal employment.

She said contributions would be flexible, with savers allowed to access half of each payment for urgent needs.

Oloworaran added that the plan would use mobile money, POS, USSD, and digital wallets through accredited agents and pension administrators.

She said the scheme offered transparency, with instant payment acknowledgment and real-time access to contribution statements.

Oloworaran said the plan was created to address low awareness, irregular earnings, and complex registration processes in the informal sector.

She said the new approach was expected to boost pension coverage, strengthen financial inclusion, and improve retirement security.

She urged journalists to support PenCom by raising awareness and simplifying the message for grassroots communities.

Acting PenOp Chief Executive, Ms Anthonia Ifeanyi-Okoro, also called for increased inclusion and innovation in the pension system.

She described pensions as a social contract that transforms long years of labour into dignity and independence in old age.

Ifeanyi-Okoro said the PPP offered flexibility, simple onboarding, and digital channels tailored to informal sector realities.

She said technology, education, and trusted agents would help millions of informal workers join the pension system.

She highlighted progress under the Contributory Pension Scheme introduced by the Pension Reform Act of 2004.

In her remarks, PenCAN President, Mrs Nana Musa, said the association viewed itself as a partner in national development.

She said PenCAN aimed to amplify stakeholder voices, highlight progress, and ensure accountability in the pension sector.

She commended all stakeholders for supporting efforts to strengthen Nigeria’s pension system.