By Henry Uche
The National Pension Commission (PenCom) said it has recorded 95,045 number of registered micropension participants with total value of the Micro Pension Plan (MPP) Fund of N435.61million as at April 2023.
Director General, PenCom, Aisha Dahir-Umar, disclosed this at the maiden edition of the Micro Pension Open Day organised by the Pension Operators Association of Nigeria (PenOp) in Lagos recently.
With the theme, “Challenges, Prospects for Growth, and Deepening Financial Inclusion in Nigeria’” the DG said the theme was apt as it aligned with the Commission’s resolve to expand pension coverage to all workers, especially those in the informal sector through the MPP.
She urged key players in the Micro Pension Plan like the Pension Fund Administrators (PFAs), Pension Fund Custodians (PFCs), services providers, industry experts and the media to come up with strategies to overcome the inherent challenges and ensure the successful implementation of the MPP.
“Recall that MPP was formally launched in March 2019 by the former President Muhammadu Buhari, as part of the Commission’s efforts to expand pension coverage to workers in the informal sector. This initiative will promote economic growth by providing a stable source of income for retirees and reduce old-age dependency, thereby causing a reduction in the poverty rate. The plan also aims to encourage a savings culture among low-income earners and self-employed individuals in the country.
“I wish to inform you that the Commission has recorded some modest success in its efforts to extend pension coverage to the informal sector.
As at April 2023, the total number of registered Micro Pension participants stood at 95,045 with total value of the MPP Fund of N435.61million. It is, however, clear that more needs to be done to achieve the desired outcome of extending coverage to workers in the informal sector with an estimated 50 – 75million workers.”
She added to MPP implementation challenges include: low awareness level, limited contribution remittance channels, lack of adequate incentives to encourage participation and absence of innovation to enhance efficiency around registration, pension contribution remittances and benefit payments, howbeit all hands must be on deck to overcome them.
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