Abuja: The Director-General of the National Pension Commission (PenCom), Ms. Omolola Oloworaran, has emphasized the critical role of the Personal Pensions Plan (PPP) in fortifying Nigeria’s long-term economic resilience. Oloworaran highlighted this during the inauguration of ‘8Awabah,’ the country’s first Accredited Pension Agent (APA), held in Abuja on Monday. She pointed out the lack of retirement security for workers in the informal sector and stressed that financial resilience is built through early savings, planning, trust, and access.
According to News Agency of Nigeria, Oloworaran referred to Nigeria’s pivotal moment in 2004 when the Pension Reform Act (PRA) transformed the retirement landscape. Before 2004, pensions in Nigeria were unfunded promises, leading to retirees facing indignity and old age anxiety. The reform brought structure and discipline, resulting in pension assets growing to over N27 trillion with more than 10 million contributors. This progress has placed Nigeria among the countries with the strongest pension systems in Africa and globally. However, many of the reform’s benefits have concentrated in the formal sector, leaving a significant gap for the informal workforce.
Oloworaran highlighted that over 90 percent of Nigeria’s workforce operates in the informal sector, representing more than 75 million individuals, including artisans, traders, farmers, transport operators, and small business owners who currently retire without savings or social protection. This gap, she noted, is both a social challenge and a national vulnerability, as a country’s strength is compromised when millions age in poverty.
Oloworaran described the PPP as vital economic infrastructure that mobilizes domestic capital, protects families, supports growth, and strengthens economic stability, rather than serving as charity. In September 2025, regulations were introduced to establish accredited agents and rebrand the Micro Pension Plan as the PPP to widen its nationwide appeal. Accredited pension agents are intended to bridge the gap between the pension system and the informal economy by delivering pension services directly to markets, farms, workshops, and rural communities. Technology will play a central role in achieving scale, enabling digital onboarding, micro-contributions, real-time account access, and low-cost service delivery.
She also mentioned that pension contributions are tax-deductible, encouraging Nigerians to save for retirement while retaining more of their income. Awabah’s status as the first accredited pension agent in Nigeria signifies leadership and commitment. This model is expected to create jobs, with thousands of young Nigerians trained as pension ambassadors across the country. The reform aims to secure jobs today, savings for tomorrow, and lifelong security, with each contributor enrolled acting as a preventive measure against poverty and a step towards ensuring dignity.
The initiative aligns with President Bola Tinubu’s inclusive growth agenda, which aims to ensure economic reforms translate into protection and dignity for all citizens. Mr. Tunji Andrews, CEO of Awabah, emphasized the company’s resilience mandate and the nationwide rollout of the accredited agent network, which aims to formalize the workforce for financial security. Andrews expressed a vision where no African worker is one mishap away from poverty and highlighted the productive workforce across the continent.
Through the ValuBah bundle, Awabah has demonstrated that for as little as N3,000 a month, personal pension bundled with health insurance, accident cover, and life insurance can be provided. This initiative ensures that everyone from security guards to business owners is protected, making financial protection highly accessible to all.