The National Pension Commission (PenCom) and the Pension Fund Operators Association of Nigeria (PenOp) have unveiled new initiatives aimed at expanding pension coverage and improving retirement security for Nigerians, particularly those working in the informal sector.
The Chief Executive Officer of PenOp, Anthonia Ifeanyi-Okoro, disclosed the development at the 2026 BusinessToday Annual Conference & Exhibition on Insurance and Pension held in Lagos.
The conference, themed “Youth Advantage: Redefining Insurance and Pensions for a New Era,” focused on strengthening financial protection systems for Nigeria’s growing young population.
Speaking at the event, Ifeanyi-Okoro explained that a large share of Nigeria’s working-age population operates in the informal sector, which continues to limit participation in the country’s contributory pension scheme.
According to her, many workers are employed outside formally registered organisations under the Corporate Affairs Commission (CAC), meaning they are not covered by the mandatory pension law.
“A vast percentage of our working-age population is informally engaged. They do not necessarily have formal employers registered with the Corporate Affairs Commission, and therefore such employers are not bound by the regulations applicable to licensed companies in Nigeria,” she said.
She noted that this structural reality has contributed to the relatively low percentage of workers making pension contributions across the country.
“As we know, the mandatory pension law in Nigeria applies only to formal workers. It covers employees and employers, and by law, employers are required to provide pensions for their staff,” she added.
However, she stressed that many Nigerians remain outside the system because pension contributions are not compulsory in the informal sector.
Ifeanyi-Okoro emphasised the broader benefits of pension participation, noting that contributors can access financial support in times of need, including the option to withdraw up to 25 per cent of their pension savings under specific conditions.
To address the coverage gap, PenOp and the regulator have revamped the Personal Pension Plan (PPP) to encourage greater inclusion, particularly among young Nigerians and informal sector workers.
She explained that the initiative evolved from the Micro Pension Plan, which previously existed but suffered from low public awareness.
“We realised that awareness was low, and over the past two years, we have deliberately focused on creating awareness and communicating the benefits of this plan,” she said.
Addressing students and young participants at the conference, she described them as the primary target group for the product.
“I encourage every student here today—you are the target audience for the Personal Pension Plan product,” she said.
According to Ifeanyi-Okoro, the plan offers several benefits beyond retirement savings, including access to health insurance and other financial advantages.
The product is designed to be fully technology-driven, enabling users to register, contribute, and monitor their pension accounts directly from their mobile devices.
“You choose how much you want to contribute, and you can easily monitor your pension balance from your mobile phone. There is no need to visit a branch or speak to anyone physically,” she explained.
She added that the Know Your Customer (KYC) process has also been fully digitised and integrated with national identity platforms such as the National Identity Management Commission (NIMC) and the Bank Verification Number (BVN) system.
With this integration, individuals whose data is already captured in the national identity database can complete registration within minutes using their mobile phones.
“As long as your data is accurate, in just a few minutes from the comfort of your home and on your phone, you can sign up for the Personal Pension Plan and begin enjoying all the benefits,” she said.
She further clarified that the plan is open to everyone, regardless of employment status.
“There is no requirement to be an employee or to have an employer. Anyone can start leveraging technology and APIs to access these benefits and enjoy the role pensions play in Nigeria,” she said.
Ifeanyi-Okoro also reaffirmed the commitment of pension operators to maintain high service standards for contributors, stressing that operators are responsible for resolving customer concerns quickly to prevent escalation to regulators.
“Pension operators are duty-bound to provide a minimum level of service. Similarly, operators do not want issues escalated to the regulator, and that is something we pride ourselves on,” she added.
