The National Pension Commission (PenCom) and the Lagos State Governor, Babajide Sanwo-Olu, have renewed the push to bring informal sector workers into Nigeria’s Contributory Pension Scheme (CPS). This was the major focus at the first Pension Industry Leadership Retreat held in Lagos, with the theme, “Sustainable Retirement – Strategic Blueprint for Economic Development and Inclusion.”
Speaking at the event, the Director-General of PenCom, Mrs. Omolola Oloworaran, said that out of over 77 million Nigerians working in the informal sector, less than 10,000 are currently active contributors under the CPS. She explained that PenCom is working on several reforms and partnerships to change this and ensure more Nigerians can enjoy secure retirement, no matter where they work.
According to Oloworaran, the Commission is collaborating with stakeholders in various industries to expand the reach of the pension scheme. She admitted that even some formal organisations, including media houses, are not fully complying with pension remittance laws. She stressed that PenCom will continue to push for accountability and transparency across all sectors.
She said, “PenCom is open for reforms. We’re working with stakeholders to build the pension industry in terms of product penetration, especially into the informal sector. We’re also working on strengthening compliance and holding all players accountable.”
Oloworaran also addressed the need to change how the Micro Pension Plan is presented. She said calling it “micro” may discourage some people from embracing it. “We need to rebrand the micro pension scheme and stop calling it micro. The word makes it sound small or less important, but we want to appeal to all workers, especially in the informal sector. Everyone deserves to have a secure future,” she said.
She added that PenCom is already looking at new ways to attract artisans, traders, and small business owners into the pension system. “We have a responsibility to make sure every low-income earner gets enrolled. We will rebrand, incentivise participation, and work on reforms that make pension schemes more attractive and inclusive,” she said.
Governor Babajide Sanwo-Olu, who was represented at the event by the Lagos State Commissioner for Finance, Mr. Abayomi Oluyomi, highlighted Lagos State’s achievements in pension contributions. He revealed that since the state started its contributory pension scheme in 2009, it has paid over ₦70.9 billion in benefits to more than 20,000 retirees between May 2009 and April 2025.
Sanwo-Olu said, “We have not only prioritised the financial security of our retirees, but we’ve also improved pension processing to make it more transparent and efficient. We believe in the dignity and welfare of our retirees.”
He added that the focus now should be on expanding the pension system to cover informal workers, who form a large part of Nigeria’s workforce. “Retirement security must extend beyond formal employment. Market women, artisans, and others in the informal economy are the backbone of our society. To ensure real economic inclusion, we need pension solutions that are simple, accessible, and trustworthy,” he said.
The retreat brought together regulators, policymakers, financial experts, and industry leaders to discuss how Nigeria’s pension system can support long-term development and economic inclusion. There was a common agreement that the informal sector must be included if the country wants to secure the future of all its workers.
Experts at the event stressed that reforms must go beyond paperwork to real engagement with informal workers. Many suggested that flexible contribution plans, incentives, and strong public education are key to getting buy-in from millions of Nigerians who currently operate outside the formal pension structure.
