By, Kikelomo Okere
The Director-General of the National Pension Commission, Omolola Oloworaran, is pushing a major expansion of Nigeria’s pension system into the informal sector, flagging it as the country’s biggest untapped source of long-term savings and investment capital.
Despite two decades of reform, pension growth has been heavily skewed toward formal workers. The system has crossed ₦27 trillion in assets and over 10 million Retirement Savings Accounts, yet tens of millions of Nigerians—traders, artisans, farmers, and small business operators—remain outside the safety net.
PenCom estimates more than 75 million Nigerians operate in the informal economy, contributing significantly to national output but largely excluded from structured retirement savings. The result is a widening protection gap, with most informal workers facing old age without financial security.
Beyond the social risk, PenCom is framing the gap as a major economic loss. Bringing even a fraction of informal earnings into the pension system could unlock trillions of naira in long-term domestic capital—funds that can be channelled into infrastructure, housing, power, and enterprise financing.
To close the gap, the commission is rolling out Accredited Pension Agents—field-based and tech-enabled intermediaries designed to take pension services directly to markets, farms, and communities. The model ties agent earnings to consistent contributions and long-term participation, aiming to drive trust and sustained enrolment.
The first licence has been issued to Awabah, with fintech firms, telecom operators, cooperatives, and payment platforms expected to scale the initiative nationwide.
The move aligns with the economic agenda of Bola Tinubu, particularly around financial inclusion and domestic capital mobilisation.
