Joy Agwunobi
The National Pension Commission (PenCom) and Lagos State Government, have amplified their efforts to integrate more workers from Nigeria’s informal sector into the nation’s pension scheme.
This call was made during the inaugural Pension Industry Leadership Retreat in Lagos, which was centered around the theme, “Sustainable Retirement – Strategic Blueprint for Economic Development and Inclusion.”
Omolola Oloworaran, the director-general of PenCom, highlighted the fact that of the over 77 million workers in the informal sector, fewer than 10,000 are actively contributing to the Contributory Pension Scheme. In a bid to enhance the contributions of this group and increase the pension industry’s overall impact on Nigeria’s economy, Oloworaran emphasised that PenCom is open to reforms that could support these goals.
“PenCom is receptive to reforms. We are collaborating with stakeholders across various industries to develop strategies that will boost pension product penetration, both in the informal and formal sectors. We’re also addressing non-compliance in certain sectors, such as some media houses that are not remitting pensions as required. We are working on reforms in product offerings, strengthening compliance, and ensuring that all industry players are held accountable,” Oloworaran explained.
On micro pensions, Oloworaran acknowledged the need to rebrand the scheme. “We need to rethink the term ‘micro pension,’ as the word ‘micro’ may imply something too small, which is not the message we want to convey. Our goal is to attract the informal sector, and we still have the responsibility to bring every low-income worker into the Contributory Pension Scheme (CPS). Ultimately, we aim to ensure that the scheme’s coverage is inclusive of all, and we’re committed to finding ways to incentivise the informal sector’s participation,” she added.
On his part, Babajide Sanwo-Olu, the Governor of Lagos State represented by Abayomi Oluyomi, the commissioner for Finance, also addressed the importance of integrating informal sector workers into the pension system. He underscored the strides Lagos State has made in providing pensions for retirees over the years.
Sanwo-Olu recounted the establishment of the Lagos State Pension Commission in 2007 and the enactment of the Lagos State Pension Reform Law, which laid the foundation for the introduction of the contributory pension scheme in 2009. Since then, he noted, Lagos has faithfully adhered to its pension contributions, disbursing over N70.9 billion to more than 20,000 retirees between May 2029 and April 2025.
The governor also underscored the state’s commitment to retiree health insurance and the ongoing modernisation of pension processes, aimed at enhancing transparency and operational efficiency. “These efforts reflect our dedication not only to providing financial security for retirees but also to safeguarding their dignity and well-being,” he added.
Despite these progress, Sanwo-Olu acknowledged that more work remains to be done. He stressed that retirement security should not be limited to formal employment but must also extend to the informal sector, including market traders, artisans, and other vital contributors to the economy. “For true economic inclusion, we must develop pension solutions that are accessible, reliable, and sustainable for every Nigerian,” he concluded.
