PenCom restates commitment to expand pension to informal workers

.MPP fund up by N436m

UFOMBA UZUEGBU

National Pension Commission (PenCom), has restated its commitment to expanding pension coverage to all workers, especially those in the informal sector through the Micro Pension Plan (MPP).
The Director-General of PenCom, Aisha Dahir-Umar stated this in a welcome address at the Micro Pension Open Day Event held in Victoria Island, Lagos on Thursday.

Speaking on the theme: “Challenges, Prospects to Growth and Deepening Financial Inclusion in Nigeria”, the DG said the event was designed at bringing together, key players in the Micro Pension Plan initiatives such as Pension Fund Administrators(PFAs), Pension Fund Custodians(PFCs), services providers, industry experts, and the media to interact on developments, challenges and strategies to ensure the successful implementation of the MPP.
Recall that the MPP was formally launched in March 2019, by the former President of the Federal Republic of Nigeria, Muhammadu Buhari, as part of the Commission,’ efforts to expand pension coverage to workers in the informal sector. Expectedly, this initiative will promote economic growth by providing a stable source of income for retirees and reducing old-age dependency, thereby causing a reduction in the poverty rate.
The Plan also aims to encourage a savings culture among low-income earners and self-employed individuals in the country.
The DG noted that the Commission has recorded some modest success in the efforts to expand pension coverage to the informal sector.
As of April 2023 for instance, the total number of registered Micro Pension participants, she disclosed, stood at 95,045 with a total value of MPP Fund of N435.61m.
The PenCom boss listed MPP implementation challenges currently, including; low awareness level, limited contribution remittance channels, lack of adequate incentives to encourage participation, and absence of innovation to enhance efficiency around registration, pension contribution remittances, and benefit payments.
“I urge you to leverage on this platform, to discuss and explore ways to overcome the hurdles associated with the implementation of MPP”, Aisha Dahir-Umar charged participants at the forum.