The Director-General of the National Pension Commission (PenCom), Ms. Omolola Oloworaran, has emphasised that the Personal Pensions Plan (PPP) is a cornerstone for strengthening Nigeria’s long-term economic stability.
She made the remark on Monday during the inauguration of “8Awabah,” the country’s first Accredited Pension Agent (APA), in Abuja.
Oloworaran highlighted that a large segment of workers in the informal sector currently lack adequate retirement security.
She stressed that financial resilience is not achieved at retirement but built over time through early savings, planning, trust, and access to structured pension systems.
Drawing a parallel with Nigeria’s 2004 Pension Reform Act (PRA), Oloworaran noted that the legislation fundamentally transformed the nation’s retirement landscape.
“Before 2004, pensions were largely unfunded promises, retirees suffered indignity, and old age was associated with anxiety. That reform replaced uncertainty with structure and discipline,” she said.
The D-G revealed that pension assets have grown to over N27 trillion, with more than 10 million contributors, positioning Nigeria among the countries with the strongest pension systems in Africa and globally.
However, citing data from the National Bureau of Statistics, she pointed out that the benefits of the reform have largely favoured formal sector workers, leaving a significant gap in coverage.
Oloworaran noted that over 90 per cent of Nigeria’s workforce operates in the informal sector, representing more than 75 million artisans, traders, farmers, transport operators, and small business owners who retire without savings or social protection.
“This coverage gap is not only a social challenge but a national vulnerability. A country cannot thrive when millions of citizens grow old in poverty,” she said.
She described the PPP as vital economic infrastructure that mobilises domestic capital, protects families, supports growth, and strengthens economic stability.
“To bridge this gap, in September 2025 we introduced regulations establishing accredited agents and rebranded the Micro Pension Plan as the PPP to broaden its appeal nationwide. These agents will take pension services directly to markets, farms, workshops, and rural communities,” Oloworaran said.
She added that technology would be central to achieving scale, enabling digital onboarding, micro-contributions, real-time account access, and low-cost service delivery.
Oloworaran further highlighted that pension contributions are tax-deductible, encouraging Nigerians to save for retirement while retaining more of their income.
She said that Awabah, as the first accredited pension agent in the country, represents both leadership and innovation. “Pioneers do not wait for the future; they build it. Awabah is not just participating in this reform—it is pioneering it,” she said.
The initiative is also expected to create jobs, training thousands of young Nigerians as pension ambassadors nationwide. “This reform is about jobs today, savings tomorrow, and security for life. Every contributor enrolled prevents poverty, and every account opened secures dignity,” she added.
Oloworaran noted that the programme aligns with President Bola Tinubu’s inclusive growth agenda, which seeks to translate economic reforms into protection and dignity for all citizens.
Awabah’s Chief Executive Officer, Mr. Tunji Andrews, said the company’s nationwide rollout of accredited agents is designed to formalise the workforce and provide financial security.
Andrews highlighted that for as little as N3,000 per month, the ValuBah bundle combines personal pension, health insurance, accident cover, and life insurance, making financial protection accessible to all workers, from security guards to business owners.
He commended PenCom for establishing the framework that allows innovation to thrive and praised partners for their ongoing support, adding that the initiative represents a new standard for financial resilience in Nigeria.