In a bid to capture the 77.5 million workers in the informal sector of Nigeria’s economy, the National Pension Commission (PenCom) has unveiled transformative initiatives to revamp its Micro Pension Plan (MPP).
Ms Omolola Oloworaran, Acting Director General of PenCom, disclosed this during a stakeholders’ engagement forum jointly organised by PenCom and the Pension Fund Operators Association of Nigeria (PenOp) in Lagos.
Oloworaran, while speaking on the theme, “Reimagining Micro Pension Plan,” outlined key initiatives, including market segmentation, rebranding, robust technology adoption, and participation incentives aimed at enhancing the reach and effectiveness of the MPP.
She said that market segmentation will involve tailoring the MPP to meet the unique needs of informal sector workers such as traders, artisans, farmers, and transport operators while rebranding efforts will give the plan a fresh identity designed to resonate with the target audience and boost engagement.
To ensure scalability and accessibility, PenCom plans to collaborate with fintech companies and telecommunications providers to develop a user-friendly platform for seamless contributions and withdrawals.
The approach draws inspiration from successful pension models in Kenya, Rwanda, South Africa, and Botswana.
PenCom is also exploring the provision of tangible benefits such as micro-loans and health insurance linkages to encourage informal workers to enrol in the scheme.
Oloworaran said, “The MPP represents more than just a policy; it is a tool for transforming lives. It offers financial security and dignity in old age, enabling hard-working Nigerians to escape the cycle of poverty.”
She pointed out the significant role of informal sector workers in driving Nigeria’s economy, noting that despite their contributions, many lack financial safety nets to protect them from economic shocks in retirement.
The MPP is designed to enable informal workers to save in small, manageable amounts over time. With pension funds currently yielding an average return of 14 per cent, the MPP goes beyond savings, offering wealth-creation opportunities for participants.
The PenCom boss stressed the broader implications of the plan, envisioning families with stable income streams in retirement.
She reiterated, “This financial security will empower families to afford better healthcare, keep children in school, and even invest in small businesses.”.
Oloworaran reassured that the revamped MPP is poised to create a ripple effect across Nigeria, fostering economic inclusion and reducing poverty while securing a dignified future for millions of informal workers in the country.
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