The National Pension Commission (PenCom) has unveiled a series of reforms aimed at expanding Nigeria’s pension coverage to millions of informal sector workers, self-employed Nigerians and citizens living and working abroad.
Key Highlights
- PenCom’s Pension 2.0 initiative seeks to expand pension coverage beyond traditional formal employment.
- Nigerians working for foreign companies and those living abroad can participate through foreign-currency retirement savings accounts.
- A new Personal Pension Plan targets self-employed Nigerians and informal sector workers.
- PenCom has created a framework for accredited pension agents to market and sell the Personal Pension Plan nationwide.
- Revised corporate governance rules are aimed at strengthening transparency, accountability and ethical standards among pension fund operators.
- PenCom is implementing recapitalisation requirements to strengthen pension operators and protect pension assets.
- The reforms also target improved customer service and digital access for pension contributors and retirees.
PenCom Director-General, Omolola Oloworaran, disclosed this in Abuja during the commission’s 2026 Customer Service Week seminar, held with the theme, “Extra Mile.”
She said the reforms under the Pension 2.0 initiative were designed to remove longstanding barriers to pension and financial inclusion while improving services for contributors and retirees.
PenCom Targets Informal Sector With Pension 2.0
Oloworaran said the reforms were driven by three principles — innovation, inclusion and integrity — with the objective of making pension administration more efficient, transparent and responsive.
According to her, Pension 2.0 recognises that Nigeria’s changing workforce requires a pension system capable of accommodating workers beyond the traditional formal employment structure.
She said the reforms were therefore designed to make pension participation accessible to Nigerians regardless of their occupation, employment status or location.
Nigerians Living Abroad Get Access To Pension Scheme
One of the major reforms is the guideline on the administration of Retirement Savings Accounts (RSAs) in foreign currency.
The guideline allows Nigerians working for foreign companies, as well as those living and working abroad, to participate in Nigeria’s pension scheme.
Oloworaran said the initiative would make the Contributory Pension Scheme more responsive to the realities of an increasingly global workforce.
She added that the reform would create opportunities for Nigerians in the diaspora to build retirement savings through the Nigerian pension system.
New Personal Pension Plan Targets Self-Employed Workers
PenCom has also introduced guidelines for the Personal Pension Plan, aimed at bringing self-employed Nigerians and workers in the informal sector into the pension system.
The commission said the plan would enable Nigerians to save for retirement regardless of their occupation or income level.
Oloworaran described the Personal Pension Plan as a major step towards expanding financial inclusion.
“The personal pension plan embodies the spirit of mission possible as it breaks long-standing barriers to financial inclusion and ensures that every Nigerian, regardless of income or occupation, can build a secure retirement,” she said.
To encourage wider participation, PenCom has developed a framework for accredited pension agents to market and sell the Personal Pension Plan across the country.
The arrangement is expected to make pension products more accessible to workers who may not have direct access to traditional employer-based pension arrangements.
PenCom Strengthens Corporate Governance Rules
As part of the wider reforms, PenCom is also implementing revised corporate governance guidelines for licensed pension fund operators.
Oloworaran said the measures were designed to strengthen accountability, transparency and ethical standards across the pension industry.
The reforms are expected to improve governance practices among pension fund operators while strengthening confidence in the management of contributors’ retirement savings.
Read also:
- 91.4% of Personal Pension Plan Accounts Remain Unfunded, PenCom Data Show
- PenCom releases guidelines on foreign currency pension contributions
- Housing Crisis: 28,437 Nigerian Workers Tap N92.7bn Pension Savings For Home Ownership
- FG Clears N758bn Pension Backlog, Pays 957,045 Beneficiaries
Pension Fund Operators Face Recapitalisation Requirement
The PenCom director-general also identified the recapitalisation requirement for pension fund operators as another key reform.
She said stronger capitalisation would improve the financial capacity and resilience of pension operators.
According to her, the measure would help protect pension assets while improving the stability, efficiency and competitiveness of operators within the industry.
PenCom Promises Better Service For Contributors, Retirees
Oloworaran said the Pension 2.0 reforms were not limited to expanding pension coverage but would also focus on improving the experience of contributors and retirees.
“Pension 2.0 is not merely about reform; it is about transforming the customer experience,” she said.
She added that PenCom would continue working to ensure seamless and prompt access to retirement savings accounts while making employers’ compliance processes simpler and more transparent.
The commission also plans to strengthen its customer service culture, improve communication with stakeholders and enhance the digital platforms available to pension contributors and retirees.
PenCom Links Customer Service To Public Confidence
Oloworaran said effective service delivery was critical to restoring and maintaining public confidence in Nigeria’s pension system.
She stressed the importance of collaboration among pension operators, employers, government agencies, the media and other stakeholders in achieving a sustainable and customer-focused pension industry.
The PenCom boss commended stakeholders for their cooperation, noting that innovation, collaboration and improved service delivery remained essential to expanding pension coverage and strengthening Nigeria’s retirement savings system.
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