Abiodun JIMOH
Nigeria’s informal workers are increasingly securing their financial future, with retirement savings under the Personal Pension Plan (PPP) climbing by 765 percent in just four years, according to the Pension Fund Operators Association of Nigeria (PenOp).
Figures show that the scheme, which was created for self-employed Nigerians and those in the informal sector, has grown from N168.63 million in June 2021 to N1.46 billion as of June 2025.
PenOp’s Chief Executive Officer, Oguche Agudah, explained that the transformation of the initiative — formerly known as the Micro Pension Plan — into the more flexible and youth-friendly Personal Pension Plan has been central to its success.
“The scheme has grown nearly ninefold in four years. By simplifying the process, leveraging technology, and raising awareness, the plan is now more attractive to Nigerians outside the formal workforce,” Agudah said.
The Personal Pension Plan is part of Nigeria’s wider push for financial inclusion, offering security to traders, artisans, transport workers, freelancers, and millions of Nigerians who are not captured by traditional pension schemes.
Experts say the scheme is helping to fill a long-standing gap: many Nigerians in the informal sector often retire without savings, leaving them vulnerable in old age. With the PPP, they can now make small, flexible contributions towards their future.
Agudah stressed that the scheme’s rebranding was a strategic move to align with market shifts, especially among younger Nigerians who are increasingly open to tech-driven financial products.
Data provided by PenOp highlights steady growth over the years:
June 2021: N168.63 million
June 2022: N285.31 million
June 2023: N500.63 million
June 2024: N867.72 million
June 2025: N1.46 billion
This steady rise, according to analysts, reflects growing confidence in the pension industry and greater awareness among Nigerians about planning for the future.
Despite the progress, stakeholders emphasize that sustaining momentum will require collaboration between regulators, financial institutions, and private sector players. “The Personal Pension Plan is set to remain a cornerstone of Nigeria’s financial inclusion strategy. With its simplified branding, tech-driven contributions, and expanding awareness, it is poised to reach more Nigerians in the coming years.”
Observers also believe that if more Nigerians adopt the scheme, the burden on families and government to provide for retirees could be significantly reduced.
For now, the story of Nigeria’s Personal Pension Plan offers hope — showing that even market women, artisans, and okada riders can look forward to a more secure retirement.
