Only about 200,000 workers out of Nigeria’s estimated 80 million informal sector workforce have enrolled in the Micro Pension Plan since its introduction in 2019. Concerned by the low participation, the National Pension Commission (PenCom) is preparing to relaunch the scheme under a new name the ‘Personal Pension Plan’— in a bid to boost enrolment and expand financial inclusion.
The new initiative was announced during the 2025 Annual Conference of the Nigerian Association of Insurance and Pension Editors, where PenCom leadership revealed that the redesigned plan will address long-standing challenges that have slowed adoption.
The original Micro Pension Plan was created as part of the Contributory Pension Scheme (CPS) to enable self-employed individuals and those working in organisations with fewer than three employees to save for retirement or in case of incapacitation. However, participation has remained minimal, with less than 1% of the target workforce captured and total assets hovering around one billion naira.
PenCom’s Director-General, represented by the Head of Corporate Communications, said the commission recognizes the need for a more inclusive approach that reflects the diversity of Nigeria’s informal workforce. The redesigned Personal Pension Plan will be structured to accommodate artisans, professionals, entertainers, sports people, and other categories of informal workers.
A major feature of the new plan is simplified onboarding, leveraging technology to make registration as easy as basic financial transactions. PenCom is also exploring the use of a Super Agent model in collaboration with Pension Fund Administrators (PFAs) and fintech firms to expand access and streamline enrolment.
Beyond enrolment, PenCom is intensifying efforts to channel pension funds into infrastructure, private equity, and other sectors that support national development. This strategy aims to protect the purchasing power of retirees while contributing to broader economic growth.
By redesigning the micro pension scheme into a more accessible and tailored product, PenCom hopes to bring millions of informal workers into Nigeria’s pension system and strengthen the country’s social safety net.
