BY NKECHI NAECHE-ESEZOBOR–No fewer than 97,591 workers have registered under the Micro Pension Plan, (MPP), of the National Pension Commission, (PenCom) as at the end of May, 2023 and total contribution of over N435.6 million.
The Director General, Aisha Dahir-Umar,
disclosed this today during the 2023 Open Day organized by Pension Fund Operators Association Of Nigeria, (PenOp), with the theme “Micro Pension – Challenges, Prospects For Growth and Deepening Financial Inclusion in Nigeria” ongoing held today at Oriental Hotel, Lagos.
The Director General, who was represented by the head, Surveillance Department of the commission, Mr. Ehimeme Ohioma, noted that total contingent withdrawal stood at N30.3 million .
She added that conversion from informal sector to former sector rose to N6.5 million with 587 Retirement Savings Account holders.
She said that the MPP initiative will promote economic growth by providing a stable source of income for retirees and reduce old-age dependency, thereby causing a reduction in the poverty rate.
The Plan, according to her is also aims to encourage a savings culture among low-income earners and self-employed individuals in the country.
She however, noted that more needs to be done to achieve the desired outcome of extending coverage to workers in the informal sector with an estimated 50 – 75million workers.
Also, Head, Micro Pensions Department, Ahmed Dauda, also listed lack of awareness; mistrust about the scheme; lack of appropriate incentive, lack of financial literacy and poor service delivery, as some of the implement challenges confronting the scheme.
Others are: increase in poverty; slow adaptation of the scheme; benefit payout; the need to reduce document during registration; weak economic indices such as inflation.
Earlier, in his welcome address, the Chief Executive Officer (CEO), PenOp, Mr Oguche Agudah said PFA’s would work towards harnessing the huge potential of the micro pension market.
Agudah lauded PenCom for being focused and committed to ensuring that the MPP thrives.
He noted that the pension industry is everyone’s products and as such, we must all work together to improve it.
“We will work towards innovation, new product and advance technology to capture the underserved demographic as clamoured.
“There is prospect in MPP because the market is huge, so we invite all our stakeholders to engage more with us to double the present record of the plan, ” he said.
