The National Pension Commission (PenCom) has taken a major step toward expanding pension access in Nigeria with the launch of Awabah, the country’s first Accredited Pension Agent, in a move targeted at millions of workers outside the formal employment system.
At the executive launch in Abuja, PenCom’s Director-General, Omolola Oloworaran, described personal pensions as a critical part of Nigeria’s economic infrastructure, stressing that the next phase of pension reform must focus on workers in the informal sector.
According to data from the National Bureau of Statistics, over 93 per cent of Nigeria’s workforce operates in the informal economy, representing more than 75 million people who largely retire without structured savings or financial protection. Despite pension assets exceeding ₦27 trillion and over 10 million Retirement Savings Accounts (RSAs), coverage remains concentrated among salaried workers.
Oloworaran said Awabah was created to close this gap by taking pension services directly to markets, farms, workshops, motor parks, and other informal workspaces across the country.
“Accredited Pension Agents are our bridge to the informal economy,” she said. “This decade must secure pensions for the informal majority, just as earlier reforms secured the formal worker.”
Micro-Contributions and Technology-Driven Access
PenCom explained that the Accredited Pension Agent framework, introduced in September last year, allows trusted agents to collect small, flexible pension contributions, helping to build confidence among self-employed Nigerians.
Through digital platforms, contributors can save as little as ₦500, make weekly or monthly payments, and manage contributions without visiting pension offices. The commission also confirmed that personal pension contributions remain tax-deductible, making them more attractive to low-income earners.
Technology is expected to play a central role, with mobile phones and payment terminals enabling easy onboarding and contribution tracking.
POS Integration to Drive Nationwide Adoption
Awabah’s Chief Executive Officer, Tunji Andrew, said the company plans to register five million contributors by 2026, leveraging Nigeria’s widespread Point of Sale (POS) infrastructure.
Under the model, Nigerians can enroll in personal pension plans directly from POS terminals, regardless of device type. The initiative is being rolled out in partnership with payment service providers, including Moniepoint.
“Our goal is to make pension registration as simple as everyday transactions,” Andrew said. “You should be able to walk into a POS location, onboard in a few clicks, and start contributing immediately.”
He added that contributors will be able to set up automatic monthly deductions, allowing pension savings to run in the background without constant manual input.
Flexible Withdrawals for Informal Workers
Beyond contributions, Awabah aims to simplify access to pension funds under existing regulations. Contributors are permitted to withdraw up to 50 per cent of their contributions after three months, a feature designed to suit the cash-flow realities of informal workers.
The company said it is working toward making withdrawals as seamless as ATM transactions, removing common barriers that discourage long-term savings.
Broader Impact on Financial Inclusion
The personal pension scheme targets traders, artisans, gig workers, self-employed professionals, and even salaried workers who wish to open additional pension accounts beyond their RSAs.
PenCom officials noted that expanding pension participation among informal workers aligns with Nigeria’s broader financial inclusion and inclusive growth goals, while also strengthening long-term domestic savings.
With Awabah now operational, stakeholders believe the initiative could redefine how Nigerians in the informal economy plan for retirement, shifting pensions from a formal-sector benefit to a nationwide safety net.
