The Director-General of the National Pension Commission (PenCom), Omolola Oloworaran, has stated that the next frontier of ongoing pension reforms is targeted at over 75 million informal workers in Nigeria.
She made this disclosure on Monday at the executive launch of Awabah, PenCom’s pioneer Accredited Pension Agent, at an event attended by Nairametrics.
The launch comes days after the Commission announced that it had licensed Awabah as the first Accredited Pension Agent (APA) for enrolling contributors under the Personal Pension Plan, marking a new phase in Nigeria’s pension reform journey.
What they are saying
Oloworaran said Nigeria’s pension system has made significant progress but remains skewed toward the formal sector, leaving millions of workers uncovered.
She explained that the next phase of pension reform must focus on closing the gap created by the country’s predominantly informal economy.
“According to the National Bureau of Statistics, over 93 per cent of our workforce is informal — more than 75 million people,” she said.
She added that this informal workforce powers Nigeria’s economy every day, yet most of them retire with no savings, pension, or safety net.
“This gap is not only a social challenge; it is a national vulnerability. Closing this gap is the next frontier of pension reform,” she added.
“And Nigeria is not a formal economy. That leaves a gap that we must close.”
“Accredited Pension Agents like Awabah represent the future of pension distribution.”
“This is not just about retirement savings; it is also about jobs and economic opportunity,” she said.
She noted that with pension assets exceeding N27 trillion and more than 10 million Retirement Savings Accounts, the system has achieved scale, but largely among salaried workers.
According to her, Accredited Pension Agents will serve as the bridge to markets, villages, motor parks, farms, and workshops by leveraging technology to reach informal workers nationwide.
More insights
Stakeholders at the event highlighted the broader economic implications of expanding pension coverage beyond the formal sector.
The CEO of Nairametrics, Ugodre Obi-Chukwu, in an interview, argued that personal pensions, formerly known as micro-pensions, can play a critical role in capital formation while providing long-term security for informal workers.
- “Micro-pensions, now known as personal pensions, are a very important aspect of capital formation in the economy,” Ugodre said.
- “Apart from the fact that you’re pulling capital from the largely informal market, you’re also creating a buffer for them, especially when they retire,” he added.
- “When we started Awabah, we were driven by a single idea: that no African worker should be one mishap away from poverty,” Awabah CEO Tunji Andrews said.
Both speakers agreed that PenCom’s decision to license early innovators such as Awabah signals a strong regulatory intent to integrate informal workers into Nigeria’s pension and capital formation ecosystem, while also strengthening social protection.
What you should know
PenCom has recently intensified reforms aimed at improving access, efficiency, and trust in the pension system.
- One of such initiatives is the introduction of a new digital platform to modernise pension administration and reduce barriers for contributors.
- PenCom rolled out a self-service online platform called the Data Recapture Self-Service Platform (PENCAP).
- The platform allows Retirement Savings Account holders to update their biodata and biometric information remotely through a secure portal.
- The initiative was developed in collaboration with the Pension Fund Operators Association of Nigeria and licensed Pension Fund Administrators.
According to the Commission, these reforms are designed to improve data accuracy, enhance service delivery, and support its broader push to bring more Nigerians—especially those in the informal sector—into the pension system.
