PenCom Targets 80 Million Informal Sector Workers for Pension Coverage through Personal Pension Plan

By Angel Ike

The National Pension Commission (PenCom) has announced plans to extend pension coverage to an estimated 80 million Nigerian workers in the informal sector.

This was revealed by PenCom Director General, Omolola Oloworaran, during the 2025 Pension Correspondents Association of Nigeria (PenCAN) Conference held in Abuja.

She explained that the initiative will be delivered through the Personal Pension Plan (PPP), an evolved framework renamed from the Micro Pension Plan to provide inclusive and innovative pension solutions designed to benefit all workers, whether formally employed or not, ensuring a secure and dignified old age.

Represented by Ibrahim Buwai, Head of Corporate Communications, PenCom, Oloworaran highlighted that a large majority of Nigerians earn livelihoods in the informal sector, including artisans, traders, Freelancers, market men and women, creative professionals, agricultural workers and participants in the gig economy.

She noted that most of whom currently lack access to structured pension schemes.

“Nigeria’s informal workforce is estimated at between 70 and 80 million people. Under- coverage in this segment means that the promise of retirement security remains a dream rather than a reality for many.

“The earlier Micro Pension Plan, launched in 2019, recorded modest uptake approximately 200,000 contributors and about one billion naira in assets, which is far below the scale of the challenge.” The DG stated.

She added, “The PPP opens the door to self-employed persons, informal sector participants, and formal sector employees who wish to make additional voluntary contributions. The eligibility threshold is set at 18 years and above.”

Anthonia Ifeanyi-Okoro, Acting Chief Executive Officer of the Pension Operators Association of Nigeria (PenOp), encouraged Nigerians to view pensions as social contracts that transform years of labor into future dignity, security, and financial independence.

The 2025 PenCAN Conference theme: “Inclusion and Innovations: Bridging the Pension Gap for Nigeria’s Informal Sector.”