National Pension Commission (PenCom) has said that unemployed Nigerians and individuals in the informal sector can now contribute to the pension scheme through the Personal Pension Plan (PPP).
This was disclosed by the Director-General of PenCom, Ms Omolola Oloworaran, on the sidelines of the two-day sensitisation workshop for pension desk officers in Lagos.
The Personal Pension Plan refers to an arrangement under the Contributory Pension Scheme (CPS) that allows the unemployed, self-employed and persons working in organisations with less than three employees to make financial contributions towards the provision of pension for their retirement or upon incapacitation.
The plan guarantees a secured future through steady income at retirement and reduces old age poverty.
Under the PPP, all associations, unions, cooperatives and trades as well as the professionals are covered and can participate in the scheme. PPP is voluntary and solely funded by the contributor who must not be below 18 years of age with legitimate source of income.
Ms Oloworaran explained that the PPP was initially known as the Voluntary Contribution under the Contributory Pension Scheme, which was limited in certain areas.
She noted that under the previous arrangement, contributors could only make voluntary payments through their employers, which restricted participation.
According to her, this would allow anyone, including self-employed and unemployed persons, to make direct contributions without the involvement of an employer.
She said this was deliberately done to provide more inclusive access to retirement savings for all.
“The Retirement Savings Account remains; it will not change. What we have done is simply to rename the Voluntary Contribution as the Personal Pension Plan.
“With the PPP, we are democratising the process. Now, anyone can decide to contribute independently, whether they are self-employed, freelancers, or currently unemployed,” she said.
Ms Oloworaran reiterated that this was part of PenCom’s broader strategy to expand pension coverage to all working-age Nigerians and ensure better financial security in retirement.