The Director-General of the National Pension Commission (PenCom), Omolola Oloworaran, has identified Nigeria’s informal sector as a key opportunity for pension expansion and domestic capital mobilisation, noting that millions of workers remain excluded from retirement savings despite their economic contributions.
In an opinion piece, Oloworaran stated that while pension reforms over the past two decades have delivered measurable gains, they have largely benefited formal sector workers, leaving a significant coverage gap across Nigeria’s labour market.
Pension assets exceeded N27tn as of December 2025, with over 10 million Retirement Savings Accounts opened.
“Over 75 million Nigerians operate in the informal sector: traders, artisans, farmers, transport operators, technicians, and entrepreneurs. They power our markets and sustain our cities. Yet most will retire with nothing. No savings. No pension. No protection. This is more than a social gap. It is a structural flaw in our economic architecture,” she said.
Oloworaran emphasised that while pension reforms have strengthened transparency, accountability, and asset growth, expanding inclusion remains critical to ensuring retirement security and broader economic stability.
She highlighted the economic potential, noting that informal sector savings could generate trillions of naira in long-term domestic capital for housing, infrastructure, power, enterprise, and other national priorities.
To bridge the coverage gap, PenCom has introduced the Accredited Pension Agents (APA) framework, aimed at extending pension access into markets, farms, workshops, and communities through proximity-driven engagement and technology-enabled mobilisation.
The framework aligns incentives between agents and Pension Fund Administrators, linking compensation to sustained contributions and participant retention. PenCom recently issued its first APA licence to Awabah, with additional fintechs, cooperatives, telecoms, and payment platforms expected to participate as the initiative scales.
Oloworaran noted that the policy aligns with the broader economic priorities of President Bola Tinubu, particularly efforts to deepen financial inclusion and mobilise domestic capital.
The Commission expects the initiative to drive pension penetration across underserved segments, transforming informal earnings into structured long-term savings capable of supporting national investment objectives.
