by Niyi Jacobs
The National Pension Commission (PenCom) and Pension Fund Operators of Nigeria (PenOp) are exploring the possibility of allowing Retirement Savings Account (RSA) holders to transfer their funds from the Contributory Pension Scheme (CPS) to the Micro Pension Plan (MPP). This proposal was discussed at the Micro Pension Industry Stakeholders Engagement Forum held in Lagos on November 14, 2024.
PenCom’s Acting Director-General, Omolola Oloworaran, outlined several key initiatives aimed at revamping the MPP, including market segmentation, rebranding, and the use of advanced technology. One of the proposed changes is the introduction of portability between the CPS and MPP, which would make the latter more accessible to informal sector workers.
Babatunde Alayande, Head of PenCom’s Micro Pensions Department, suggested that the MPP market should be segmented to cater to various worker profiles, and called for rebranding efforts to attract a wider audience. He also recommended increasing public awareness and exploring alternative funding sources to incentivize the MPP, which is designed to provide financial security for the country’s informal sector, representing 78% of Nigeria’s workforce.
