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2023 Micro Pension Open Day: "Micro Pension – Challenges, Prospects For Growth and Deepening Financial Inclusion in Nigeria"

The Pension Fund Operators Association of nigeria (PenOp), organized a Micro Pension Open Day for people in the informal sector of Nigeria to collaborate with Pension Industry experts on matters relating to the Micro Pension Plan (MPP)

Since its inception in 2019, the Micro Pension Scheme has witnessed a noteworthy total of 97,591 registrations. These registrations have resulted in a cumulative contribution of N435.61 million as of May, 2023.

The head of the Surveillance Department, Mr. Ehimeme Ohioma, representing the Director General, highlighted that the total contingent withdrawal amounted to N30.3 million. He mentioned that there was an increase in the conversion from the informal sector to the formal sector, amounting to N6.5 million, involving 587 Retirement Savings Account holders. He expressed the DGs thoughts to say that the initiative will contribute to economic growth by offering a reliable income source for retirees and reducing dependence on others in old age, thereby lowering the poverty rate as the objective of the Micro Pension Plan (MPP), is to cultivate a savings culture among low-income earners and self-employed individuals across the nation.

Mr Dauda Ahmed, the Head of the Micro Pensions Department, listed several implementation challenges faced by the scheme, including lack of awareness, mistrust regarding the scheme, insufficient incentives, low financial literacy, inadequate service delivery, increase in poverty, slow adaptation of the scheme, issues related to benefit payout, the need to simplify document requirements during registration, and weak economic indicators such as inflation.

During the panel sessions, all of these matters were extensively discussed, providing an opportunity for stakeholders to actively participate, ask questions, and gain a deeper understanding of the intricacies of the Micro Pension Plan.