Experts seek incentives to boost informal sector pension enrolment
Lagos, Sept. 2026 (TBL Africa)Pension experts have called for incentives, flexible contributions, and better financial literacy to drive informal workers’ enrolment in the personal pension plan by the National Pension Commission (PenCom).
The personal pension plan has recorded 219,316 registrations since inception , but 91.4 per cent of the accounts remain unfunded, with only 8.6 per cent funded.
Pension and Retirement Consultant, Mr Ehimeme Ohioma, said offering incentives to informal sector workers would encourage regular contributions and boost participation in the scheme.
Ohioma proposed that government should match contributions periodically for one to three years, with withdrawals restricted until conditions like age or minimum contribution period are met.
“Alternatively, support such contributors with flexible business loans and capacity building to boost and sustain their businesses, which will enable them save more,” he said.
Citing Rwanda’s success in expanding pension coverage among informal workers, Ohioma said Nigeria could study the model and adapt it to suit its local context.
He said prevailing economic conditions remained a major obstacle to retirement savings, as many Nigerians struggled to meet their immediate needs.
Another pension consultant, Mr Babatunde Raimi, said the figures could be improved if Pension Fund Administrators (PFAs) partner with banks, fintechs, cooperatives, trade associations, and digital platforms to simplify pension contributions.
Raimi urged stakeholders to target organised groups such as market associations, transport unions, cooperatives, professional bodies, artisans’ associations and small-business networks.
He said pension education should also become more practical by showing prospective contributors how regular savings could translate into retirement income over time.
Raimi further recommended a “registered today, funded today” campaign to encourage new contributors to make their first payment immediately after opening a Personal Pension account.
He said the industry could also consider incentives that reward consistent contributions rather than registration alone.
“The 219,316 registrations are a positive foundation but with 91.4 per cent unfunded accounts, the industry has a significant conversion challenge.
“The next phase should therefore be less about enrolment and much more about activation, education, convenience, trust and sustained contribution.
“Ultimately, an empty pension account does not provide retirement security. An actively funded account does,” Raimi said.
He also advocated micro-contributions.
He said daily, weekly and monthly payment options could make pension savings more accessible to traders, artisans, transport operators, farmers, freelancers and other informal sector workers.
