…Targets artisans, gig workers with new personal pension plan

By Bimbola Oyesola

From January to November 2025, the National Pension Commission (PenCom) recovered N4.04 billion from defaulting employers, compared with N1.44 billion recorded in the whole of 2024, representing a 180 percent increase.

This is even as the organization unveiled a renewed drive to bring artisans, traders, gig workers and other informal sector participants into Nigeria’s pension system through the rebranded Personal Pension Plan (PPP) as part of a broader reform agenda aimed at strengthening retirement security and restoring confidence in the contributory pension scheme.

Director-general of PenCom, Omolola Oloworaran, speaking in Lagos on Thursday during the PenCom 2025 Annual Conference, where she presented what she described as a 365-day scorecard of reforms since her confirmation in office, said the restructuring of the micro-pension framework into the Personal Pension Plan was designed to “meet Nigerians where they are” and remove long-standing barriers to participation by informal sector workers.

She noted that the commission issued a compliance circular in the second quarter of 2025 linking pension clearance certificates to participation across the pension industry value chain.

According to her, companies without valid clearance certificates are barred from doing business with pension fund administrators or attracting pension fund investments.

“The impact of the measure, she said, has been significant. From January to November 2025, PenCom recovered N4.04 billion from defaulting employers, compared with N1.44 billion recorded in the whole of 2024, representing a 180 percent increase,” she said.

She added that recoveries in the third quarter of 2025 alone amounted to N2.06 billion, nearly 150 percent of total recoveries recorded in the entire previous year.

She said compliance levels also improved in the issuance of pension clearance certificates, with the average quarterly value rising from about N150 billion to N233 billion in the third quarter of 2025.

Under the new framework, Oloworaran said onboarding requirements have been simplified, digital enrollment expanded, and accredited pension agents introduced to drive coverage. According to her, the agents are expected not only to deepen pension penetration but also to create employment opportunities for young Nigerians, who will be trained and certified as pension professionals.

She said the Personal Pension Plan forms part of Pension Revolution 2.0, a comprehensive reform programme launched during the period under review, which combines regulatory changes, governance reforms, technology upgrades and industry realignment to position the pension system as a pillar of long-term national stability.

Welfare package

Beyond coverage expansion, Oloworaran highlighted major fiscal and welfare interventions carried out during the year. She said the Federal Government approved and disbursed N758 billion to clear outstanding pension liabilities, describing the move as one of the most significant milestones in the industry since the introduction of the Pension Reform Act in 2004. The payment, she said, cleared long-standing arrears and sent a clear signal that the government would honour its obligations to retirees.

She added that pension increase backlogs for treasury-funded federal retirees, some dating back to 2007, had also been settled, contrary to widespread expectations that such liabilities would remain unpaid. In addition, she said the commission restored zero waiting time for the payment of approved retirement benefits with effect from July 2025, provided all documentation requirements are met.

“In addition, zero waiting time for payment of approved rights was restored with effect from July 2025 this year, meaning you retire, you get paid immediately you retire, provided you met all documentation requirements,” she said, adding that the delays previously experienced by retirees had been eliminated.

To further improve pension adequacy, the Director-General said PenCom introduced Pension Boost 1.0 in June, which has added N2.6 billion to monthly pension payments for contributory pension scheme retirees.

On technology and administration, Oloworaran said the commission achieved full automation of critical processes, including the Pension Clearance Certificate system, benefit processing and contributory remittance platforms, resulting in improved operational efficiency.

She however stated that further upgrades to the clearance certificate system were already being planned to keep pace with evolving technology.

PENCARE

The Director General announced the inauguration of the Board of Trustees of the Pension Industry Healthcare Initiative (PENCARE), an industry-wide intervention aimed at providing free and accessible healthcare for low-income retirees.

She said the pilot phase is scheduled for March next year and is expected to enrol 30,000 retirees across the six geopolitical zones.

On governance and compliance, Oloworaran said PenCom raised capital requirements for pension operators to strengthen institutional capacity and improve risk management, while also tightening governance rules to eliminate what she described as shadow directorships in the industry.

She maintained that transparency and accountability were non-negotiable in the management of pension assets.

Oloworaran stressed that the reforms were driven by data, dialogue and discipline, noting that the next phase of the pension revolution would focus on expanding coverage, deepening trust, improving investment outcomes, strengthening supervision and protecting both retirees and active contributors.

“Retirement security is not a privilege, it is a right, and PenCom will defend it firmly and fairly,” she said.