Nigeria’s Pension Commission (PenCom) has highlighted the need to adopt the Micro Pension Plan (MPP) as a way of boosting retirement security for the often overlooked informal sector.
Dauda Ahmed, Head of the Micro Pensions Department at PenCom, emphasized the MPP’s role in enabling those in smaller organizations and self-employed individuals to contribute to their retirement savings, in line with the Pension Reform Act of 2014.
“The MPP presents a significant opportunity for workers in the informal sector to secure their future through retirement savings,” Ahmed stated.
He highlighted an uptick in enrollment, with over 97,000 contributors signing up for the plan in the past few months, signaling a growing awareness among artisans, entrepreneurs, and other informal sector participants.
During a special day at the Lagos International Trade Fair, Aisha Dahir-Umar, Director-General of PenCom, urged informal sector workers to consider the MPP.
Speaking through Sola Adeseun, she underlined PenCom’s multifaceted approach to raising awareness, including sessions with market women nationwide, encouraging them to contribute to the MPP for a secure retirement.
Dr. Michael Olawale-Cole, President of the LCCI, commended the pension industry’s growth, noting that total pension assets as of September 2023 stood at N17.35tn and a contributors’ base of about 10.1 million people.
However, he flagged persisting challenges like inconsistent policies, delayed pension payments, a high number of defaulting employers, and weak enforcement of Pension Act compliance that require urgent attention.