PenCom Targets 60m Enrollees
BY CHINYERE OBIORA, LAGOS – The National Pension Commission (PenCom) says it is targeting over 60 million Nigerians in the informal sector for its Contributory Pension Scheme (CPS) by the end of this year.
Equally, the Commission is working on growing the pension assets to about N3 trillion by year 2024.
According to the Commission, extending the CPS coverage to the informal sector aims at ensuring all Nigerians have the opportunity of a good life at their old age.
PenCom’s Head of Research and Corporate Strategy, Dr Aminu Farouk, said the targeted group of Nigerians would be captured and brought on board through Micro Pension Scheme (MPS).
He said the scheme, targeted at Nigerians with low and irregular income in the informal sector, would be formally launched before the end of first quarter, adding; the Commission expects to register many Nigerians during the micro pension launch.
Farouk said; “I also don’t think PenCom has any number presently. However, we intend to cover the entire informal sector over time, this is about 60 million citizens.”
He said PenCom and the Pension Fund Administrators (PFAs) are partnering on Information Technology (IT) infrastructure for a seamless operation of the plan, stressing that micro pension would capture self-employed Nigerians, particularly those with irregular income in the informal sector as well as the financially uninformed with limited access to pension plan.
Farouk also explained that the balance in the Retirement Savings Accounts (RSAs) of the micro pensioners could be used as equity contribution for their residential mortgages or business support
He said; “Section 2(3) of the Pension Reform Act, 2014 legal framework extends the coverage of the Contributory Pension Scheme (CPS) to self-employed persons through micro pension scheme.
“Definitely, the pension plan will provide succour to participants when they are old and reduce dependence on extended family for support at retirement.”
Farouk further said PenCom is continuously creating and rising awareness among informal sector groups, such as, the Nigerian Union of Textile, Garment and Tailoring Workers of Nigerian (NUTGTWN) and other partner trade associations for effective participation in the scheme.
Specifically, he said Non-Governmental Organisation (NGOs) and religious bodies among other organizations are being encouraged to be an active part of the micro pension plan.
