PenCom to attract 60m enrolees, N3trn growth

The National Pension Commission (PenCom) is set to attract 60 million Nigerians in the informal sector to the pension scheme and hit N3 trillion assets growth. PenCom said the extension of the pension scheme to the informal sector was to ensure that all Nigerians have a good life at old age. The Head, Research and Corporate Strategy of the commission, Dr Aminu Farouk, said in Lagos that the set of Nigerians would be attracted through micro pension scheme. Farouk said the scheme, which targeted Nigerians with low and irregular income in the informal sector, would be formally launched before the end of first quarter.

Farouk said the scheme was expected to enhance the growth of pension assets to the tune of N3 trillion by year 2024. He said: “I have no idea how many people are expected to be registered at the launch of the Micro Pension. I also don’t think PenCom has any number presently. However, we intend to cover the entire informal sector over time, this is about 60 million citizens,” he said. He said that the commission and the Pension Fund Administrators (PFAs) were working on the Information Technology (IT) infrastructure for a seamless operation of the plan.

He also said that micro pension would capture self-employed Nigerians, those with irregular income usually in the informal sector and the financially uninformed with limited access to pension plan. “Section 2(3) of the Pension Reform Act, 2014 legal framework extends the coverage of the Contributory Pension Scheme (CPS) to self-employed persons through micro pension scheme. Definitely, the pension plan will provide succour to participants when they are old and reduce dependence on extended family for support at retirement,” he said.

Farouk said the commission had created awareness in informal sector groups, such as, the Nigerian Union of Textile, Garment and Tailoring Workers of Nigerian (NUTGTWN) and partner trade associations. “Also Non-Governmental Organisation (NGOs) and religious bodies among others, to encourage them to subscribe to the micro pension plan,” he said. Farouk said that the balance in the Retirement Savings Accounts (RSAs) of the micro pensioners could be used as equity contribution for residential mortgages or business support.