The need to strengthen the post-retirement financial capability of all working Nigerians across all sectors of the economy has been re-echoed as government needs to extend micro pension plan to the informal sector of the economy.
The Chief Executive Officer of the Pension Operators Association of Nigeria, Mr. Oguche Agudah, who made the assertion also called for more awareness creation to bring the informal sector into the Nigerian Micro Pension Plan.
According to him, the culture of savings must be at the front burner to ensure Nigerians have something to fall back to when they are old.
The PenOp CEO spoke virtually at a Retreat/ Maiden Magazine unveiling of the Pension Correspondents Association of Nigeria (PenCAN) which took place in Abuja.
Making his submissions on the relevance of Contributory Pension Scheme (CPS) in the 21st century, he said “Nigeria has about 60% citizens in the informal sector that have not enrolled into the Contributory Pension Scheme and are without any retirement plan at all.
“As such, stakeholders in the pension industry must keep engaging with the informal sector and create awareness by not only getting information out, but putting it in a way people can receive it, understand it and be interested in joining.”
Speaking on the relevance of savings, he added, “Micro pension is very important owing to the fact that it is private Sector-driven and transparent.
“If the informal sector which forms a large chunk of Nigeria’s population does not have anything to fall back on, they will be a liability to the country, but with the Micro Pension Scheme, which is managed by professionals, it will provide a buffer for them as they age.”
Mr. Oguche admitted that the Contributory Pension Scheme is not perfect, but it has proven over time to be of great support to the elderly who make deliberate efforts for their retirement.
He urged the Association to keep the advocacy drive in the pension sector and complement the efforts of the operators and regulator to ensure a safe and transparent pension sector.
Earlier in her remarks, President of PenCAN, Nana Musa, highlighted the relevance of media participation in awareness creation.
She also reiterated the Association’s commitment to partner with stakeholders in driving the growth of the sector.