A recent survey by the Financial Inclusion Working Group (FIWON) has highlighted the low penetration of Nigeria’s pension system among informal sector workers. As of October 2024, the Micro Pension Plan (MPP) had enrolled only 152,749 workers in informal employment, representing a mere 0.198% of the nation’s estimated 77.5 million informal workers.
The findings underscore the challenges of extending retirement savings to Nigeria’s vast informal economy, which includes traders, artisans, and self-employed individuals. Experts argue that low awareness, limited access, and cumbersome registration processes contribute to the sector’s exclusion.
FIWON recommends enhanced public education campaigns, simplified registration procedures, and incentives for informal workers to join the pension system, stressing that broadening coverage is essential for long-term financial security and poverty reduction.
