PenCom Redesigns Micro Pension into Personal Plan for Informal Sector

Mr. Ibrahim Buwai, Head of Corporate Communications at PenCom

The National Pension Commission (PenCom) has unveiled ambitious plans to reshape Nigeria’s pension landscape by introducing a more inclusive and innovative approach to retirement savings. In a landmark announcement, Mr. Ibrahim Buwai, Head of Corporate Communications at PenCom, revealed that the commission is redesigning and rebranding the Micro Pension Scheme into a Personal Pension Plan (PPP), a model tailored to Nigeria’s vast informal sector.

Buwai explained that the rebranded plan will stratify pension products to meet the needs of artisans, entertainers, sports professionals, and other informal workers. By leveraging financial technology platforms and super agents, the PPP aims to ensure seamless onboarding, flexible contributions, and easy access for millions of Nigerians who are currently outside the structured pension system.

“Our strategy is to create pension products that reflect the lifestyle and earning patterns of informal workers. The goal is simple: expand coverage, strengthen financial inclusion, and provide social security for millions of Nigerians who have no retirement safety net,” he said.

The announcement came during the 10th Annual Conference of the Nigerian Association of Insurance and Pension Editors (NAIPE), held in Lekki, Lagos. This year’s event was themed: “Strengthening Pension and Insurance Framework for a Better Economy.”

Explaining the choice of theme, organizers emphasized that a robust pension and insurance framework is essential for Nigeria’s development. “We believe that strong pension and insurance systems play a critical role in ensuring financial security, social stability, and sustainable economic growth. Without them, individuals remain vulnerable in retirement, and the broader economy suffers from instability,” NAIPE noted.

The conference brought together regulators, operators, and key stakeholders to reflect on a decade of industry engagement while charting a new course for the future. The highlight was a high-powered panel session anchored by the immediate past Commissioner for Insurance and former Chief Executive of the National Insurance Commission (NAICOM), Mr. Thomas O. Sunday. Discussions centered on innovation, regulatory reforms, sustainability, and how initiatives like PenCom’s PPP could expand financial protection across Nigeria.

Industry analysts say the Personal Pension Plan could be a game-changer in tackling pension exclusion, especially in the informal economy that accounts for over 80 percent of Nigeria’s workforce. By positioning pensions not just as retirement savings but also as a social safety net, PenCom’s move underscores a bold step toward inclusivity, financial security, and long-term economic resilience.

At the NAIPE 10th Annual Conference themed “Strengthening Pension and Insurance Framework for a Better Economy”, PenCom unveiled its new Personal Pension Plan targeting Nigeria’s informal sector, aiming to boost financial inclusion, social security, and sustainable economic growth.

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