•Opens pension window for self-employed, unemployed Nigerians
By Victor Ahiuma-Young
The National Pension Commission, PenCom, has announced a major reform that allows self-employed and unemployed Nigerians to participate in the nation’s pension scheme through a newly introduced initiative known as the Personal Pension Plan PPP.
The Director-General of PenCom, Ms. Omolola Oloworaran, disclosed this on the sidelines of a two-day sensitisation workshop for pension desk officers held in Lagos.
Oloworaran explained that the PPP was formerly known as the Voluntary Contribution under the Contributory Pension Scheme, CPS, which had several limitations that restricted participation.
According to her, under the old arrangement, contributors could only make voluntary pension payments through their employers, a process that excluded self-employed persons and those without formal jobs.
“With the new Personal Pension Plan, we are democratising the process. Now, anyone can decide to contribute independently, whether they are self-employed, freelancers, or currently unemployed,” the PenCom boss stated.
She emphasised that the Retirement Savings Account, RSA, structure remains unchanged, but the Commission’s decision to rebrand and expand the plan was aimed at providing broader access and inclusivity.
“What we have done is to rename the Voluntary Contribution as the Personal Pension Plan. This reform is deliberate and designed to open up the pension system to all Nigerians, regardless of their employment status,” she added.
Oloworaran noted that the initiative forms part of PenCom’s strategic efforts to expand pension coverage across the country, particularly targeting the informal sector, which makes up a large portion of the Nigerian workforce.
She assured that the new plan would ensure better financial security for all contributors in retirement and deepen the culture of long-term savings among Nigerians.
“This is about financial inclusion and ensuring that no Nigerian is left out of the pension safety net,” she added.
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