Leadway Pensure PFA, a leading Pension Fund Administrator in Nigeria, has highlighted the urgent need to bring the informal sector into pension schemes early. This strategic inclusion is critical for providing financial security and significantly reducing retirement poverty for millions of workers outside the formal pension system. The call was made during the Inspensonline Retirement Summit 2025, held under the theme, “Attaining Good Retirement Amid Economic Headwinds.” The summit convened key industry stakeholders to strategize on ensuring secure retirements for all Nigerians, particularly in the face of prevailing economic challenges.
Representing the Executive Director, Sales & Investment, Oluwafemi Adebayo, Mr. Olugbenga Oriowo, Head High Networth Clients (HNC) Unit at Leadway Pensure PFA, delivered a compelling address focusing on the necessity of leveraging the Micro Pension Scheme to alleviate poverty among individuals in the informal sector.
Mr. Oriowo clearly analogized the different stages of life to the universal need for structured financial planning, regardless of one’s employment type. He underscored the significant gap in pension coverage within Nigeria’s vast informal sector, highlighting the alarming paradox given its substantial contribution to the national economy.
He noted the critical challenge, “While Nigeria’s informal sector comprises an estimated 75 million individuals, representing a significant economic force, only a fraction, roughly 0.23% as of February 2025, are currently enrolled in the Micro Pension Scheme. These are our friends, family members, drivers, and domestic workers. The key question to collectively address is: What happens when these individuals reach their elderly years without a financial safety net? Without deliberate efforts to educate and encourage enrollment in the micro pension scheme, there is a risk of widespread poverty, placing an undue burden on future generations. It is incumbent upon all stakeholders to drive this essential financial literacy and inclusion.”
He acknowledged ongoing efforts by regulators and PFAs to simplify the micro pension contribution process, including seamless digital remittance options. Discussion at the summit also shed light on concerning financial habits, contrasting the billions spent annually on speculative activities like betting with the significantly low penetration of micro pension accounts. Despite the National Pension Commission’s (PenCom) target of enrolling 8 million micro-pension participants by 2024, only 77,689 contributors had registered as of April 2022, representing just about 1% of the goal. This stark reality underscores the urgent need to redirect funds towards sustainable retirement savings. Participants emphasized understanding economic sectors beyond just property to ensure diversified savings that can outpace inflation.
Leadway Pensure PFA reiterated its stance on advancing financial literacy and inclusion, particularly within the informal sector. The PFA is focused on simplifying the enrollment process, requiring only a National Identity Number and a valid ID, and leveraging technology, including USSD codes, to make contributions accessible and help more Nigerians build towards a comfortable and financially independent retirement.
The summit reinforced the timeless principle that “if you pay the price, you will get the value,” stressing that strategic financial planning, involving delayed gratification and calculated risk-taking, must begin now to attain a truly good retirement.
