The organized private sector (OPS), in support of the Micro Pension Plan (MPP), which aims to increase retirement savings, has been urged by the National Pension Commission (PenCom) to step up its campaign.
Head of PenCom’s Micro Pensions Department Dauda Ahmed said, “The MPP was introduced by the Pension Reform Act (PRA) 2014 to allow individuals working in organizations with fewer than three employees and self-employed individuals to voluntarily participate in the contributory pension scheme and save for their retirement age.”
She was speaking during the Commission’s special day at the recently concluded Lagos International Trade Fair, which was organized by the Lagos Chamber of Commerce and Industry (LCCI). Ahmed advised self-employed individuals, traders, and craftsmen to sign up for the commission’s Micro Pension Scheme in order to ensure a workable retirement plan.
“Workers in the informal sector now have a significant opportunity to secure their retirement through retirement savings through the MPP," he continued. This, in his opinion, indicates that in the past few months, more artisans, business owners, and other players in the unorganized sector have become aware of the program.
“More than 97,000 contributors have signed up for the micro pension plans,” stated Ahmed.
Nonetheless, the commission has seen an improvement in enrolment, primarily as a result of greater national awareness. He claims that one tactic the Commission is employing to maintain the momentum behind
micropensions is participation in the annual trade show.
“The trade show serves as a venue for us to engage with stakeholders and businesspeople who we believe should be a member of the micro pension system, outlining the advantages that the micro pension would provide for them. The feedback has been quite positive. Through our interactions with the participants, we have explained the plan and shown how they may get the most out of the effort.”
We have been in contact with union leadership and association leadership to hold talks with them in order to persuade their members to enroll in the plan, as in old age, money is more important than possessions. Thus, you should maintain anything that can provide you with a consistent source of income, he advised.
Speaking about the MPP initiative’s advancement, the Director General Aisha Dahir-Umar’s representative, Sola Adeseun, Head of South West Zonal Office, PenCom, added
“Attending the trade show is merely one of our approaches to raising awareness about MPP. In addition, PenCom engages in sessions with market women nationwide to enable them to contribute to the micro pension plan and ensure that they have a safety net when they reach retirement age.
Additionally, he emphasized that the MPP is being welcomed in Lagos and that the zonal office is stepping up efforts to raise the party's profile in the geopolitical South West zone.
In his welcome speech, Dr. Michael Olawale-Cole, President of the Lagos Chamber of Commerce and Industry, praised the pension sector for its achievements over the years, noting that as of September 2023, total pension assets were at N17.35 trillion, with roughly 10.1 million contributors.
According to Olawale-Cole, 10.1 million individuals make up just 16.8% of Nigeria’s workforce, suggesting substantial possibility for expansion.
He states that even with the progress made thus far, the industry still needs to address issues like inconsistent policies, a high number of defaulting employers, delays in paying pensions and gratuities to deserving retirees, and lax enforcement of non-compliance with the Pension Act.
