At the recently concluded 2025 Pension Industry Leadership Retreat held in Lagos, former Managing Director of Premium Pension, Umar Mairami, issued a stark warning about the low level of participation in Nigeria’s Contributory Pension Scheme (CPS), despite the sector’s growing asset base.
Speaking during a high-level session at the retreat, which ran from May 8 to 10 at the Lagos Continental Hotel, Victoria Island, Mairami described the situation as “unsustainable and dangerous,” revealing that only 4 percent of Nigeria’s population currently contributes to the nation’s pension assets—now valued at over N23 trillion.
“The sector cannot fulfill its promise if only a small fraction of the workforce is covered,” Mairami said. “When over 90% of the working population is excluded from structured retirement savings, we’re sitting on a ticking time bomb.”
The retreat, jointly organized by the National Pension Commission (PenCom) and the Pension Fund Operators Association of Nigeria (PenOp), brought together key stakeholders across government, regulatory bodies, pension fund administrators, and lawmakers under the theme: “Sustainable Retirement – Strategic Blueprint for Economic Development and Inclusion.”
Inclusion Now, Not Later
Mairami called for urgent measures to address the participation gap, emphasizing that the future sustainability of the pension system hinges on inclusion, particularly from the informal sector. He recommended targeted policy reforms and innovative engagement models to bring more Nigerians into the CPS.
Among his proposals were:
- Simplified and flexible contribution structures for informal workers
- Tax incentives and micro-pension schemes tailored to low-income earners
- Technology-driven onboarding platforms to streamline enrollment
- Grassroots awareness campaigns using cooperatives and trade associations
“It’s time to make pensions a national culture, not just a corporate benefit,” Mairami stressed. “We must move beyond the elite bubble and build a system that serves the market woman, the artisan, the gig worker.”
A Sector at a Crossroads
His intervention struck a chord with participants at the retreat, particularly as the event focused on charting a more inclusive and economically impactful future for the pension industry. Mairami’s comments added urgency to ongoing calls for legislative backing and innovative policy solutions.
The retreat also featured contributions from top figures in the industry, including lawmakers and PenCom officials, all underscoring the need for deeper synergy between regulation, legislative oversight, and operator innovation.
Looking Ahead
As the curtains fell on the retreat, Mairami’s call for mass inclusion remained one of the most echoed takeaways. With over N23 trillion in managed assets and millions of excluded Nigerians, stakeholders agreed that broadening the contributor base is no longer optional—it is essential.
If Nigeria’s pension system is to remain viable and socially impactful, industry leaders say the strategy must shift from growth by volume to growth by value—and inclusion is the path forward.
“Our retirees deserve more than numbers on paper,” Mairami concluded. “They deserve a system that works for all—regardless of status, income level, or geography.”
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