PenCom Reports 84.9M Informal Workers Lack Pensions

The National Pension Commission (PenCom) reported that about 84.9 million workers in Nigeria's informal sector are without pension coverage, despite contributing between 58 and 61 percent to the country's Gross Domestic Product. Babatunde Alayande, Head of the Micro Pension Department at PenCom, disclosed this information in Lagos.

The informal sector comprises approximately 93 percent of Nigeria's workforce, which is estimated at 85 million, with a majority being women. As of July 26, 2026, only 263,000 informal workers had registered under the Personal Pension Plan (PPP), representing a mere 0.3 percent coverage.

The PPP was introduced following the replacement of micro-pension guidelines in October 2025, allowing self-employed individuals and workers in small organizations access to pension. Alayande noted challenges such as low income, limited awareness, and preference for immediate cash.

To improve enrollment, PenCom has licensed corporate entities and FinTechs as micro pension agents and is developing tailored products for specific demographics.