The National Pension Commission (PenCom) has officially launched Awabah as Nigeria’s first Accredited Pension Agent (APA), a move aimed at deepening pension inclusion and expanding access to personal pension schemes, particularly for self-employed Nigerians and workers in the informal sector.
Speaking at the executive launch themed “Building Financial Resilience: Securing the Future with Personal Pensions,” PenCom Director-General, Ms. Omolola Oloworaran, described personal pensions as “vital national economic infrastructure” and said closing the pension gap for informal workers represents “the next frontier of pension reform.”
Oloworaran highlighted that while Nigeria’s pension assets now exceed N27 trillion with over 10 million Retirement Savings Accounts (RSAs), the system has primarily served formal workers. “According to the National Bureau of Statistics, over 93 percent of our workforce is informal—more than 75 million Nigerians. Most retire with no savings or safety net,” she said.
The DG explained that the Accredited Pension Agent regulation, introduced in September 2025, aims to bridge this gap through trusted community representatives who can collect micro-contributions and build confidence in pension schemes. “Accredited Pension Agents are our bridge to the informal economy. They will take pensions to markets, villages, motor parks, farms, and workshops,” she added.
Technology will play a key role, allowing traders to save as little as N500 via their phones and enabling mechanics and artisans to contribute weekly without leaving their workplaces. Oloworaran also emphasised that pension contributions remain tax-deductible. “If 2004 secured pensions for the formal worker, this decade must secure pensions for the informal majority,” she declared, aligning the initiative with President Bola Tinubu’s inclusive growth agenda.
Awabah CEO, Tunji Andrew, said the company plans to leverage existing payment infrastructure to simplify pension registration and contribution processes nationwide, targeting five million customers in 2026. One of its innovations is integrating personal pension onboarding with Point of Sale (POS) terminals, in partnership with payment service provider Moniepoint.
“You can go to any POS terminal, select an amount, and authorise automatic monthly deductions. You do it once and you forget about it,” Andrew said, noting that this model makes pension contributions seamless for self-employed individuals, gig workers, traders, and artisans. Salaried workers with existing RSAs can also open additional personal pension accounts.
Beyond contributions, Awabah aims to make pension withdrawals under the personal pension plan framework as easy as ATM transactions. Contributors are allowed to withdraw up to 50 per cent of their pension contributions after the first three months, in line with regulations.
The launch of Awabah represents a landmark step in extending retirement security to Nigeria’s informal sector, bridging long-standing gaps in pension coverage and leveraging technology to make savings convenient and accessible.
