PenCom Redesigns Micro Pension Plan to Boost Financial Inclusion

The National Pension Commission (PenCom) plans to redesign the Micro Pension Plan to enhance financial inclusion, particularly in Nigeria's informal sector. PenCom aims to make the scheme more attractive to boost participation, addressing the slow growth recorded since its launch in 2019.

The Micro Pension Plan allows individuals in organizations with fewer than three employees to contribute towards retirement benefits. PenCom highlighted the need to capture the majority of Nigeria's informal workforce in the pension net to increase financial inclusion.

With a large informal labor force in Nigeria, the redesign aims to expand the Contributory Pension Scheme and promote financial inclusion in the informal sector.