Millions of Nigerian Informal Workers Still Lack Retirement Safety Net, Pension Authority Warns

Nigeria’s National Pension Commission (PenCom) has highlighted a major retirement security gap for workers in the informal economy, saying that tens of millions risk ending their working lives without any pension savings. PenCom’s Director‑General, Omolola Oloworaran, said that the country’s pension reforms have so far mainly helped formal sector employees, leaving large segments of artisans, traders, transport operators, and other self‑employed individuals outside the contributory pension system.

Data from government sources show that the informal sector makes up more than 90 % of the workforce, yet only a tiny fraction are covered by pension plans. Without changes to expand inclusion, many people could retire without income security, the commission noted.

To tackle this challenge, PenCom has introduced new measures such as licensing community‑based pension agents and rebranding the existing micro‑pension scheme as a more accessible “personal pension plan.” It also plans to use digital platforms and partnerships with financial service providers to make it easier for informal workers to save for retirement.

The commission stressed that widening pension participation remains critical for social protection and economic resilience as Nigeria’s workforce continues to expand.