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Only 1.78% Nigerian workforce captured in pension net

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Only 1.78 percent of the Nigerian workforce is captured in the pension fund of the Collaborory Pension Plan (CPS) and has a guaranteed life after retirement, according to a report obtained by The Nation.

The report published by the National Pension Commission (PenCom) indicated that 1.78 percent represented 8.79 million workers captured under the scheme.

Moreover, the number of workers in the country increased from 8.63 million tax payers at the end of the previous quarter of 2019 to 8.79 million in the second quarter of 2019.

However, membership growth represents only 29 percent of about 30 million workers in the formal sector, out of the country’s 200 million inhabitants.

It also represents 8.7% of the total active population of 100 million in the country.

Meanwhile, the total assets of the country’s pension funds reached N9.32 billion in June 2019.

The commission attributed the growth of membership to the regime to the maximum level of compliance by the private sector.

He said that compliance by the private sector is the result of various measures taken by the Commission to improve compliance and coverage, as well as the marketing strategies of pension administrators, pension fund administrators (PFA).

Suffice it to say that the informal sector constitutes an estimated workforce of 70 million in the country and represents about 88% of Nigerian workers who do not have pensions and safety nets for their old age.

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To capture more workers under safety nets, the federal government through PenCom said its goal is to reach 30 million people in the informal sector by 2024. According to the Commission, this will be achieved through the Micro Plan Pension (MPP) launched by President Muhammadu Buhari in March of this year.

Speaking with journalists from Lagos, the interim general director of the National Pension Commission (PenCom), Ms Aisha Dahir-Umar said that the MPP, which is a commission initiative, aims to provide pension services to self-employed workers in the informal sector. and employees of organizations with less than three employees.

She said: “The commission planned extending pension coverage to 30 million contributors by 2024, thereby ensuring that 40 per cent adult Nigerians are covered under the CPS. President Mohammadu Buhari, in March, 2019, launched the micro pension scheme to provide the informal sector with a veritable means of securing old age income.

“We believe that the implementation of the MPP would yield positive results for Nigerians and the industry. We have put in place requisite infrastructure to facilitate seamless implementation of MPP. The Enhanced Contribution Registration System (ECRS) has been deployed to facilitate seamless operations of the MPP. This system has so far aided the smooth registration of micro pension contributors.”

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