78 Million Informal Workers in Focus as PenCom, Ministry Drive Pension Expansion

In a bold push to extend social security coverage to Nigeria’s informal workforce, the Federal Ministry of Special Duties and Intergovernmental Affairs has pledged to partner with the National Pension Commission (PenCom) to drive the expansion of the Micro Pension Scheme across the country.

During a courtesy visit to the Ministry on Thursday, PenCom’s Director, Saleem Muhammad, led a high-level delegation to advocate for stronger collaboration aimed at closing the pension coverage gap that has left millions of informal sector workers without retirement security.

Addressing the meeting, Muhammad emphasized PenCom’s commitment to ensuring that artisans, traders, farmers, tailors, mechanics, and other informal workers—who form the backbone of Nigeria’s economy—can benefit from the pension system.

He noted that despite the launch of the Micro Pension Scheme on March 28, 2019, uptake has remained critically low, with only about 200,000 informal sector participants enrolled to date. This is a fraction of the over 78 million Nigerians working in the informal sector, who collectively represent 93% of the country’s labor force, according to the National Bureau of Statistics (NBS) 2024 report.

Also speaking, Dr. Babatunde Alayande, Head of the Micro Pension Department at PenCom, described the figures as alarming and highlighted the urgent need to drive awareness and build confidence within the informal economy. He stressed that greater engagement with local trade associations, community networks, and grassroots organisations across all 774 local government areas is essential to scale up participation.

In his response, the Permanent Secretary of the Ministry, Dr. Onwusoro Maduka Ihemelandu, welcomed the initiative and expressed the Ministry’s readiness to work with PenCom to achieve the shared goal. He announced the immediate formation of a technical committee tasked with engaging critical stakeholders, including the Association of Local Governments of Nigeria (ALGON), trade unions, and community-based associations, to drive sensitization efforts.

Dr. Ihemelandu emphasized the importance of trust-building, reassuring potential contributors in the informal sector that their savings would be safe, secure, and accessible when needed.

The collaboration between the Ministry and PenCom is seen as a strategic move to bridge the longstanding pension gap between Nigeria’s formal and informal sectors, offering financial security and retirement dignity to millions of hardworking Nigerians who have traditionally been excluded from pension benefits.

As Nigeria pushes toward inclusive economic growth, the success of this partnership could mark a significant milestone in protecting the livelihoods of informal workers and safeguarding their future in retirement.

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