New Pension Leadership Council Targets Informal Sector, Stronger Social Protection

The Federal Government through the newly inaugurated Pension Industry Leadership Council plans to drive reforms in Nigeria’s pension sector, with a strong focus on expanding coverage to the informal workforce and strengthening social protection for retirees.

The council was inaugurated in Abuja by the Secretary to the Government of the Federation (SGF), Senator George Akume, who described the move as a national priority to unify operators, regulators, and stakeholders for more effective coordination in the industry.

Director-General of the National Pension Commission (PenCom), Omolola Oloworaran, said the PILC would play a role similar to the Bankers’ Committee in the financial sector by providing collective leadership and ensuring synergy across the industry.

She noted that the council’s mandate includes enforcing governance standards, safeguarding contributors’ funds, channeling assets into national development, driving innovation, and expanding coverage, especially among informal sector workers.

“The informal sector represents more than 80 percent of Nigeria’s workforce. If we are to achieve universal pension coverage, artisans, traders, transporters, and other workers outside the formal system must be brought in. This council will lead that charge,” Oloworaran stated.

The PenCom boss said the initiative is part of what she described as “Pension Revolution 2.0”, championed by President Bola Tinubu, who has already directed the introduction of healthcare for retirees and the establishment of a minimum pension guarantee.

“These are bold reforms never seen before in the industry. Nigerians who have worked all their lives deserve peace of mind in old age. That is the President’s charge, and it is a national priority,” she added.

Since the introduction of the 2004 Pension Reform Act, which birthed the Contributory Pension Scheme (CPS), pension assets have risen, providing a pool of long-term capital for economic stability.

However, challenges such as low coverage, inflationary pressures, and adequacy of benefits persist.

Oloworaran disclosed that PenCom is working with government partners to create investment instruments that would hedge pension assets against inflation and naira depreciation.

She further revealed that the ₦758bn bond earlier approved to clear outstanding pension liabilities has reached an advanced stage, with the Debt Management Office expected to conclude issuance before October.

On prompt payment of entitlements, she stressed that the contributory scheme has ended delays associated with the old system.

“Under the CPS, retirees now receive their benefits in the month of retirement once due process is followed. There are no outstanding liabilities under the scheme,” she assured.

The DG acknowledged that earlier initiatives like the Micro Pension Plan fell short of expectations but promised new strategies to attract the informal sector into the pension net.

She added that the PILC would help the industry unlock pension funds for investments in infrastructure, agriculture, housing, and the capital market to support national development.