75m Informal Workers Risk Retirement Without Pension – PenCom

By Oluwakemi Kindness

The National Pension Commission (PenCom) has warned that more than 75 million Nigerians working in the informal sector risk retiring without any pension coverage.

Speaking in Abuja on Monday, PenCom Director-General, Omolola Oloworaran, said while pension reforms over the past two decades have strengthened Nigeria’s financial system, their benefits have largely been limited to the formal sector.

She noted that traders, artisans, farmers, transport operators, and small business owners remain largely excluded from retirement protection.

Oloworaran cited National Bureau of Statistics data showing that only about 0.25 per cent of informal sector workers are currently covered under existing pension schemes.

She warned that long-term national resilience cannot be achieved if a large segment of the population grows old without savings or financial protection.

To address the gap, PenCom has accredited Awabah as Nigeria’s first pension agent under a new regulatory framework aimed at expanding pension services beyond traditional offices.

The initiative is designed to take pension access directly to markets, workshops, transport hubs, and local communities.

The PenCom boss said technology will play a critical role in expanding coverage, with digital onboarding, mobile contributions, real-time account access, and seamless benefit payments expected to drive inclusion nationwide.

She also noted that pension contributions remain tax-deductible, offering additional incentives for savers.

Awabah’s Chief Executive Officer, Tunji Andrews, said the company’s Resilience Mandate initiative seeks to formalise the financial security of informal workers who contribute significantly to Nigeria’s economy.

He explained that the programme allows workers to contribute as little as ₦3,000 monthly to a personal pension plan, bundled with health, accident, and life insurance coverage.

Andrews added that the agent-led model simplifies pension products, improves accessibility, and supports the Federal Government’s broader agenda on inclusive economic growth and social protection.