PenCom Targets One Million Women With Pension Plan For Informal Sector

The Director-General of the National Pension Commission (PenCom), Omolola Oloworaran, has announced an ambitious plan to enroll one million women in the commission’s Personal Pension Plan (PPP) as part of efforts to deepen pension coverage among workers in Nigeria’s vast informal sector.

Speaking during an outreach programme to market women in Abuja to commemorate International Women’s Day, Oloworaran said the initiative was designed to provide financial security for women who operate outside formal employment structures and therefore lack structured retirement savings.

According to her, the programme aims to address a major gap in Nigeria’s pension system, where the majority of informal sector workers many of them women are excluded from retirement savings schemes.

She said women play a critical role in sustaining families and communities but often do so without adequate financial protection in old age.

“Nigerian women wake up very early in the morning, sometimes as early as 3am or 4am, to open their shops, run their market stalls, farm the land and support their families,” Oloworaran said.

“Despite contributing so much to the economy, many women in the informal sector live their lives without financial protection for their retirement years.”

The PenCom Boss explained that the Personal Pension Plan was designed to accommodate the realities of informal sector workers whose incomes are often irregular.

Under the scheme, participants can contribute flexible amounts daily, weekly or monthly depending on their financial capacity and business cycle.

“This plan allows traders, tailors, farmers and other small business owners to save toward retirement at their convenience,” she said. “Whether you want to contribute N1,000 daily, weekly or monthly, the scheme allows that flexibility.”

Oloworaran noted that contributors would also be able to access up to 50 per cent of their savings before retirement in the event of emergencies, while the remaining balance would be preserved to provide financial support in old age.

She assured participants that the pension industry remains secure and well regulated, stressing that funds contributed under the scheme are protected under the country’s pension regulatory framework.

“The pension industry has been in existence since 2004 and it has proven to be safe and secure,” she said. “Your money is safe within the pension system.”

To encourage participation, Oloworaran disclosed that PenCom had introduced a temporary matching contribution initiative to support women who sign up for the plan.

Under the incentive, contributions made by women during the week of the campaign would be matched by the commission up to a maximum of N20,000.

“If you contribute N1,000, we will add N1,000. If you contribute N10,000, we will add N10,000. If you contribute N20,000, we will match it with another N20,000,” she explained.

She noted that the funding for the matching scheme would come from a combination of industry stakeholders and donor partners who support efforts to expand financial inclusion and retirement security in Nigeria.

According to her, the programme is part of a broader strategy to expand pension coverage beyond the formal workforce, where participation is currently higher.

She pointed out that the informal sector accounts for a large portion of Nigeria’s workforce, estimated at over 77 million people, making it a crucial area for pension expansion.

“We are targeting one million women to register under this scheme within the year,” Oloworaran said. “Some people think it is a high target, but considering the size of the informal sector workforce, it is achievable.”

She explained that PenCom would monitor the progress of the initiative by tracking new registrations and contributions through the reporting systems of Pension Fund Administrators.

“We will monitor the number of registrations and the amounts being contributed through the systems that connect us to the Pension Fund Administrators,” she said.

Oloworaran also urged participants to ensure that they provide details of their next of kin when opening pension accounts to enable easy access to benefits in case of unforeseen circumstances.

“If anything happens, your next of kin can contact the Pension Fund Administrator and the benefits will be administered accordingly,” she said.

She added that PenCom would take the campaign nationwide, with similar outreach programmes scheduled across all geopolitical zones to promote pension participation among women in markets and other informal sector workplaces.

According to her, the earlier individuals join the scheme, the greater the benefits they are likely to enjoy in the long run.

“The earlier you key into this plan, the better,” she said. “Save small today so that you can gain big tomorrow.”

Oloworaran encouraged women to spread the message within their communities and encourage others to participate in the programme.

“Tell your friends, your daughters and family members,” she said. “Tell somebody to tell somebody until everyone hears about the Personal Pension Plan.”

She concluded by reiterating the commission’s commitment to ensuring that every Nigerian woman has the opportunity to achieve financial dignity, security and independence in old age.