The National Pension Commission (PenCom) is targeting inclusion of over 20 million contributors in its Micro Pension Scheme as part of its plans to overhaul and expand the commission’s landscape.

The commission said the overhauling of the Micro Pension Plan (MPP) was part of a broader strategy to increase financial inclusion and extend pension coverage to more Nigerians, particularly in the informal sector.

The reforms, announced by the Director General, Omolara Oloworaran, during the 2024 PenCom Media Conference in Lagos on Thursday, seek to make the scheme more accessible and relatable to workers across various sectors.

Oloworaran explained that the current MPP did not sufficiently address the diverse needs of the informal sector, which include farmers, fashion designers, and traders.

To make the scheme more inclusive and relatable, the commission plans to rename and restructure it, ensuring its appeal to individuals from all walks of life.

“We want to rebrand the Micro Pension Plan to make it more inclusive and relatable, particularly for individuals in the informal sector. Whether you are a farmer, a fashion designer, or a trader, we want the plan to speak directly to your unique needs,” she said.

The initiative comes as PenCom seeks to tap into the country’s vast informal sector, which accounts for over 70 million individuals. Oloworaran stated that the Commission is committed to significantly increasing participation in the scheme, with incentives designed to encourage long-term savings among low-income earners.

Highlighting PenCom’s broader achievements, she revealed that the Commission oversees over N21.9 trillion in pension assets and a contributor base exceeding 10.5 million as of October 2024.

However, challenges remain, including inflation and delays in disbursing accrued pension rights.

Oloworaran revealed that N44 billion was recently approved under the 2024 budget to settle arrears for retirees from March to September 2023, although over 18,000 retirees were still awaiting payment since October.

Discussions with the federal government, she assured, were ongoing to resolve these delays and establish a sustainable payment framework.

PenCom has also made strides in digital transformation, with the introduction of an e-Application Portal for Pension Clearance Certificates (PCC) which commenced in October.

She added that the Commission had processed over 38,000 PCC applications in 2024.

Additionally, the PenCom boss said Pension Industry Shared Service Initiative is set to digitize contributions and resolve discrepancies, enhancing efficiency across the sector.

Oloworaran described the reforms as pivotal to ensuring no Nigerian is left behind in accessing financial security.

“This is about transforming lives and creating a pension system that works for everyone, regardless of their income level,” she stated.

She called on the media to support the Commission’s efforts by educating the public on the benefits of pensions and amplifying awareness about the reforms.

“Your role is crucial in driving participation and holding us accountable to our objectives,” she said

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