Severe economic pressures have left Nigeria’s Personal Pension Plan (PPP) struggling, with more than 90 per cent of registered accounts inactive as subscribers cite worsening hardship as the reason for abandoning regular contributions.
Data from the National Pension Commission (PenCom) show that out of 215,412 Retirement Savings Accounts (RSAs) registered under the PPP as of December 2025, only 17,320 (8 per cent) had received contributions, while 198,092 (92 per cent) were dormant.
Despite a 175 per cent increase in registrations over four years—from 78,087 accounts in 2022 to 215,412 in 2025—the proportion of inactive accounts has risen steadily, climbing from 87.4 per cent in 2022 to 92 per cent in 2025.
PenCom expressed concern that registrations without funding create a misleading picture of financial inclusion, stressing the need for targeted strategies to drive consistent contributions. The regulator highlighted participant education, incentive structures, and streamlined remittance processes as critical to ensuring the long-term sustainability of the PPP.
Originally launched as the Micro Pension Plan, the PPP was designed to extend financial inclusion to self-employed and informal sector workers, with an ambitious target of nine million registrants by 2023. However, limited awareness and weak engagement by Pension Fund Administrators (PFAs) have slowed progress. PenCom has since mandated PFAs to submit annual awareness plans or face sanctions.
Expert Perspectives
Industry experts warn that the PPP’s stagnation reflects untapped potential in the informal sector and call for coordinated efforts to deepen penetration.
- Pius Apere, MD, Anchor Actuarial Services: “The PPP is meant to safeguard self-employed Nigerians against poverty in old age. Government must stabilise the economy to prevent further withdrawals and ensure every Nigerian has access to a pension scheme.”
- Edwin Igbiti, former CIIN President: “The PPP can improve living standards for informal workers at retirement, reduce dependence on family support, and promote a savings culture.”
- Olumide Fatogun, MD, Boff Insurance Brokers: “Operators must innovate beyond one-size-fits-all products. Tailored pension solutions with multiple benefits are needed to attract informal workers.”
Informal Sector Concerns
Stakeholders in the informal economy say poor awareness remains a major barrier.
- Prince Saviour Iche, AMEN President: “Many of our members have never heard of the PPP. Without proper sensitisation, uptake will remain low.”
- Mrs. Fasilat Yusuf, Iyaloja of Onigbongo: “Neither I nor my fellow traders know about the PPP. No one has explained how it works or its benefits.”
- Mr. Bayo Alagbe, Chairman, Vulcanisers Association (Maryland Zone): “Even those who opened accounts don’t understand the scheme. Lack of sensitisation is the problem.”
- Mrs. Ojo Florence, Acting President, Small Scale Women Farmers Organisation: “Economic hardship makes pension savings a low priority. Many of our members are unaware the PPP exists.”
Way Forward
PenCom has pledged to intensify efforts to revitalise the PPP by:
- Accelerating engagement through accredited pension agents.
- Expanding partnerships with cooperatives, fintechs, telcos, trade unions, and professional associations.
- Driving sustained sensitisation campaigns targeting MSMEs, gig workers, and self-employed Nigerians.
