National Pension Commission (PenCom) has presented an operational licence to Nigeria’s first-ever Accredited Pension Agent (APA), marking a major step toward deepening pension penetration across the informal sector and expand pension coverage among millions of Nigerians.
The licence was formally handed over at a high-level event in Abuja themed “Building Financial Resilience: Securing the Future with Personal Pensions,” where stakeholders from government, the pension industry and the fintech ecosystem gathered to chart a new course for inclusive retirement savings.
PenCom’s Director-General, Ms Omolola Oloworaran, described the introduction of accredited pension agents as a strategic response to Nigeria’s pension coverage gap, particularly among informal workers.
She disclosed that pension coverage in the informal sector currently stands at just 0.25 per cent, a figure she said could “practically be rounded down to zero,” even though over 90 per cent of Nigeria’s workforce operates in the informal economy.
“What we are gunning for is pension penetration,” Oloworaran said. “We want pensions taken to the streets, to the villages, to markets and workshops across Nigeria, so that informal sector workers can enrol in the personal pension plan and build financial security in old age.”
According to her, accredited pension agents would serve as the bridge between the pension system and millions of underserved Nigerians, helping to drive enrolment, education, and trust at the grassroots level.
She added that PenCom was open to licensing as many agents as possible, provided they met the required standards and infrastructure.
A key highlight of the new framework is the deployment of technology-driven pension contributions, allowing Nigerians to save towards retirement using mobile phones, USSD codes and POS terminals—eliminating the need for long, manual processes previously associated with pension enrolment.
“For pensions to scale to over 75 million Nigerians, it has to be technology-based,” Oloworaran said. “Convenience and seamless access are critical if we are serious about inclusion.”
Mr Tunji Andrews, Chief Executive Officer of Awabah, revealed that the initiative aims to register 5 million people this year, covering informal workers, gig workers, self-employed Nigerians, and even those already enrolled in the mandatory pension scheme who wish to build additional retirement savings. He also noted that parents can open personal pension accounts for their children, held in trust until adulthood.
Mr Andrews added that contributors could access up to 50 percent of their savings after three months, a flexibility designed to encourage participation while maintaining long-term savings discipline.
The Managing Director of the Pension Fund Operators Association of Nigeria (PenOp), Ms Anthonia Okoro, noted that although Nigeria’s informal sector employs over 90 million people, fewer than 200,000 were currently enrolled in pension schemes, with only about **17,000 actively remitting contributions.
“Working with accredited pension agents like Awabah is critical to changing this narrative,” Okoro said. “They understand the informal sector, they are on the ground, and they have built trust within communities. The future of pension penetration looks much brighter with this model.”
PenCom officials stressed that beyond retirement security, the accredited pension agent initiative is expected to create thousands of new jobs, empower young Nigerians as pension ambassadors, and mobilise long-term domestic savings capable of supporting national development.
RN
