PenCom Unveils Strategic Plans to Revamp Micro Pension Plan, Targets 20 Million Nigerians in Two Years

In a bold move to reignite trust and participation in Nigeria’s pension sector, the National Pension Commission (PenCom) has announced plans to rebrand its Micro Pension Plan (MPP). At the 2024 PenCom Media Conference in Lagos, Director General Miss Omolara Oloworaran emphasized the Commission’s ambition to onboard at least 20 million Nigerians into the revamped scheme within two years.

Oloworaran, who took over from Mrs. Aisha Dahir-Umar, highlighted the shortcomings of the current MPP, stating that it lacks resonance with the diverse informal sector, estimated to include 70 million Nigerians. To address this, PenCom intends to redesign the scheme with a new name, structure, and technological integration that will enhance accessibility and scalability.

The DG’s approach marks a stark departure from the perceived “dark days” of her predecessor’s tenure, which was criticized for its lack of visibility and stakeholder engagement. Industry insiders recall several missed opportunities to promote the 20-year-old pension industry, citing key events such as the Senate and House Committees’ pension retreats in Lagos and Uyo, where the former DG’s absence drew public criticism from lawmakers.

These challenges underpinned a period of stagnation, leaving the industry struggling to recover from low public awareness and trust. Dahir-Umar’s administration also faced allegations of neglect, with over 800 companies, including media houses, embroiled in litigation for non-remittance of pension funds.

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Under Oloworaran’s leadership, PenCom has pledged to engage media owners directly to ensure regular remittance of funds, addressing a long-standing issue that has left workers, particularly in the media sector, vulnerable. This engagement aligns with the Commission’s recovery of N28.5 billion in outstanding funds so far, signaling a renewed commitment to transparency and accountability.

Looking ahead, Oloworaran has reassured retirees and contributors under the Contributory Pension Scheme (CPS) of more flexible withdrawal options and increased accessibility. Retirees can now access up to 50% of their savings as a lump sum upon retirement, provided the remaining balance supports sustainable monthly payments. The revised retirement age limit of 65 years and above further broadens the scope of beneficiaries.

Moreover, PenCom is working to resolve disbursement delays affecting 18,000 retirees since October 2023. Talks with the federal government are ongoing to clear the backlog, offering hope to thousands of affected pensioners.

As the industry awaits the revamped MPP, stakeholders are optimistic that Oloworaran’s leadership will restore trust, drive participation, and secure the financial future of millions of Nigerians. The ambitious target of onboarding 20 million contributors reflects PenCom’s renewed focus on innovation, accountability, and inclusion—a stark contrast to the challenges of the past.

With a clear vision and actionable strategies, the Oloworaran era signals a transformative chapter for Nigeria’s pension industry, where the Commission is poised to reclaim its position as a catalyst for economic security and growth.