Millions of Nigeria’s self-employed workers are willing to set aside money for retirement, yet remain outside the formal pension net.
Pension Fund Administrators (PFAs), despite regulatory reforms efforts, have struggled to effectively reach artisans, freelancers and small business owners who operate outside traditional employer structures.
At 52, Okechi Nkagbu fits squarely into that gap. An architect running a modest private practice in Lagos with just one employee, a secretary, juggling site visits, client meetings and endless traffic in Nigeria’s commercial capital.
Most days begin early and end late. Between chasing contracts and supervising projects across the city, retirement planning has remained an afterthought, not because he does not care, but because no one has shown him how.
Read also: Pension plan for informal workers in Nigeria: A crucial national conversation
Nkagbu says he has heard about the Personal Pension Plan (PPP) under Nigeria’s Contributory Pension Scheme (CPS) on the radio and in news reports. The idea of setting aside money for his later years appeals to him. But beyond the headlines, he feels shut out of the system.
“I want to have a pension plan in place, but no one has educated me yet,” he said quietly in his office, architectural sketches stacked beside him.
“We see bank staff come around to market their products, but we have not seen anyone who says they are from a Pension Fund Administrator (PFA).”
Like many self-employed professionals and small business owners, Nkagbu operates outside the traditional employer-employee structure where pension contributions are automatic.
Without structured engagement from PFAs, he remains willing but unconnected; aware that time is moving, yet uncertain about the first step.
For Nkagbu, retirement is no longer a distant concept. It is a looming reality. And as he continues to design buildings meant to stand for decades, he hopes someone will help him design a secure future of his own.
The case is not different from Oluchi Chinedu, a 35-year-old trader in the bustling community of Mowe, in Ogun state. She rises early each day to open her modest provision shop, a small space filled with containers and bags of assorted beverages, soaps, drinks and everyday essentials that sustain her family.
The shop is more than a business; it is the lifeline through which she supports her three children and dreams of a more stable future.
“I hear about pensions on TV and the news,” she says, glancing at the small radio that sits on her counter. “They say it helps people save for old age, but nobody has ever come to explain it to me or help me start one.”
Like Nkagbu, Oluchi Chinedu is aware of retirement savings in principle but remains outside the formal pension system. PFAs and marketers, she notes, have never approached her to discuss enrolment, an experience shared by thousands of small traders and entrepreneurs.
Would she like to begin saving for a pension? Her answer is hopeful but cautious.
“Yes, I would like to start,” she admits. “But not right now. I have many things to handle with my money, school fees, the shop, and feeding my children. When things get better, I will take that step.”
Her response captures the dilemma of informal workers, a willingness to save for the future, balanced against immediate financial pressures. “I know pensions are important,” she adds. “I just need time. When I am ready, I will do it.”
For her, the idea of retirement savings is not neglected; it is deferred. Her story reflects the broader challenge facing pension providers in reaching artisans, traders, and small business owners who operate outside traditional employer structures yet aspire to financial security.
The National Pension Commission (PenCom) however has stepped in to accelerate pension inclusion in the informal sector, with the formal launch of Awabah, as Nigeria’s first Accredited Pension Agent (APA) under the Personal Pension Plan (PPP).
At the licensing ceremony, Omolola Oloworaran, director general of PenCom while presenting operational licence to Awabah, charged the company with deepening pension penetration by taking retirement solutions directly to markets and other centres of economic activity.
“Technology now enables a trader to save N500 from her phone, a mechanic to contribute weekly without leaving his workshop, and a farmer to monitor his pension balance in real time,” Oloworaran said.
She commended Awabah for taking the lead as Nigeria’s first APA. “While many were observing from the sidelines, Awabah stepped forward early, embraced the framework, and chose to lead not by chance, but by conviction,” she added.
In his remarks, Tunji Andrews, chief executive officer of Awabah reaffirmed the company’s commitment to expanding access to retirement solutions for underserved communities and leveraging technology to transform long-term financial wellbeing.
Read also: Sit-at-home: Anambra slashes workers salaries for failure to attend work on Mondays
The APA framework, issued by PenCom in September 2025, empowers accredited agents engaged by PFAs to market the PPP and register new contributors, particularly within the informal sector.
The PPP is a voluntary retirement savings arrangement designed to extend pension coverage to individuals outside formal employment.
It enables artisans, traders, freelancers, professionals and other informal sector workers to open Retirement Savings Accounts (RSAs) with licensed PFAs and make voluntary contributions through approved digital channels.
In 2025, the Micro Pension Plan (MPP) was restructured into the Personal Pension Plan (PPP), a more inclusive model aimed at expanding coverage and boosting participation.
The transition underscores PenCom’s commitment to making pension savings accessible to everyone, including professionals, freelancers and Nigerians in the diaspora who wish to contribute independently.
The new PPP regulation introduces greater flexibility in contributions and withdrawals, seamless digital registration processes, and broader investment options.
It allows individuals to contribute directly without relying on an employer, while ensuring their funds continue to grow under the Contributory Pension Scheme (CPS) framework.
Over the past five years, the PPP has recorded significant growth, rising from N185.18 million in August 2021 to N1.58 billion in August 2025, an increase of more than 750 percent. The surge reflects growing awareness, rising confidence and stronger participation among Nigerians determined to take control of their retirement future.
