Adegbayi began with a bold economic truth: Nigeria’s labour force is more informal than formal. According to the latest labour statistics, Nigeria’s working-age population stands at over 116 million, but only a fraction—6.5 million Nigerians—are in formal employment. She questioned whether most Nigerians were truly building a future or merely running in circles, likening the experience to a hamster’s wheel or a rat race.
The session laid bare a deep concern: the vast majority of Nigerian workers—over 77 million—are in informal employment, with no structured pension or health insurance coverage. In a system where the labour force participation rate is 76.3%, disparities are glaring. For example, Bauchi State boasts a participation rate of 92.3%, while Ekiti trails at 63.4%.
On the issue of income security post-retirement, Adegbayi turned the spotlight on inflation and the time value of money. A retirement pot of ₦50 million in 2005 is now worth ₦508 million in 2024, thanks to inflation—an increase of 917%. Even over the short span from 2023 to 2025, ₦50 million depreciated to ₦84 million, a staggering loss of 68% in purchasing power. This, she argued, proves that most Nigerians will not have adequate income in retirement unless major reforms are pursued.
With striking clarity, she outlined the pension sector’s performance:
- As at December 2021, pension scheme membership rose by 3.39% to 9.58 million.
- RSA (Retirement Savings Accounts) dominate the structure, accounting for 99.4% of total membership.
- Assets under Management (AuM) grew from ₦12.31 trillion in 2020 to ₦13.42 trillion in 2021, but 65.35% of it is locked in Federal Government securities, raising questions about diversification and long-term yield.
- The federal government injected ₦107 billion into a Pension Protection Fund for vulnerable retirees.
Adegbayi raised a stark warning: even with reforms, Nigeria’s lower class—making up the bulk of the workforce—will struggle to survive retirement. She critiqued the current contribution rates, noting that 18% of pensionable emoluments are insufficient when inflation erodes real value.
Her message was not without hope. Referencing the Biblical Parable of the Bags of Gold (Matthew 25:14-30), she urged attendees to be like the servants who invested wisely. “Retirement is not just a finish line—it is a mirror. What you see depends on what you saved, invested, and protected.”
She concluded with a call for:
- Greater financial education, especially among informal workers.
- Expanded inclusion in pension and health insurance systems.
- Increased employer compliance in remitting contributions.
- Policy innovation, to tailor pension products for artisans, traders, and gig workers.
“Reality has struck. Now is the time to pick our axes and dig deep. Retirement is not just about surviving—it’s about living with dignity.”
Adatola Adegbayi’s message at the 2025 Inspenoline Summit was a sobering reflection of the present—and a compelling charge to secure the future.
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