90% of Nigerians Lack Formal Pension Coverage — Report

More than 75 million Nigerians working in the informal sector may reach retirement without access to formal pension coverage, according to the National Pension Commission.

The Director-General of PenCom, Omolola Oloworaran, disclosed this in Abuja while speaking at the presentation of a licensed accredited pension agent certificate to Awabah, the first company accredited under the commission’s new pension agent framework.

Oloworaran said data from the National Bureau of Statistics showed that more than 90 per cent of Nigeria’s workforce operates within the informal economy, while pension coverage among workers in the sector remains extremely low.

She explained that the affected workers include traders, artisans, farmers, transport operators, technicians, small business owners and young entrepreneurs who contribute significantly to economic activity but often lack structured retirement plans.

According to her, the situation creates a significant challenge for the country because millions of Nigerians could become financially vulnerable after leaving the workforce.

She noted that Nigeria’s pension reforms had expanded retirement protection for formal-sector workers but that the informal economy remained largely underserved.

PenCom has therefore intensified efforts to bring more informal-sector workers into the pension system through the Personal Pension Plan and other initiatives designed for people with irregular incomes.

The commission is also working with technology companies, financial institutions, cooperatives and other organisations to make pension contributions easier and more accessible to self-employed Nigerians.

Oloworaran said the accreditation of pension agents would help bridge the gap by allowing trained agents to reach workers who may not have direct access to conventional pension operators.

The development comes amid concerns about the long-term financial security of Nigerians who spend their entire working lives outside formal employment.

A separate report indicated that 92 per cent of registered Personal Pension Plan accounts had received no contributions as of December 2025, highlighting the difficulty of maintaining regular retirement savings among informal workers.

PenCom has continued to encourage traders, artisans, farmers, professionals and other self-employed Nigerians to participate in available pension schemes.

The commission said expanding coverage remains important to reducing the risk of old-age poverty and improving financial security for Nigerians after retirement.

It also urged stakeholders in the informal economy to support efforts aimed at increasing pension participation and creating a stronger culture of retirement savings across the country.