The Director-General of the National Pension Commission, Omolola Oloworaran, has identified Nigeria’s informal sector as a major opportunity for pension expansion and domestic capital mobilisation, noting that millions of workers remain excluded from retirement savings despite their economic relevance.

In an opinion piece made available to The PUNCH, Ms Oloworaran stated that pension reform over the past two decades has delivered measurable gains but has largely benefited formal sector workers, leaving a significant coverage gap across Nigeria’s labour market.

The PUNCH reports that pension assets exceeded N27tn as of December 2025, with more than 10 million Retirement Savings Accounts opened.

Addressing the exclusion of informal sector workers and the structural risk this presents, Ms Oloworaran said, “Over 75 million Nigerians operate in the informal sector: traders, artisans, farmers, transport operators, technicians, and entrepreneurs. They power our markets and sustain our cities. Yet most will retire with nothing. No savings. No pension. No protection. This is more than a social gap. It is a structural flaw in our economic architecture. A country cannot build enduring prosperity when the majority of its workforce ages into vulnerability.”

She explained that while pension reforms have strengthened transparency, accountability, and asset growth, expanding inclusion remains critical to ensuring retirement security and broader economic stability.

On the economic opportunity and capital mobilisation potential, Oloworaran added, “It is also a missed opportunity of historic scale. The informal economy contributes significantly to national output. If even a fraction of that income were systematically saved through pensions, the result would be trillions of naira in long-term domestic capital. Capital for housing. Infrastructure, power, enterprise, and capital that build nations.”

To bridge the coverage gap, the PenCom DG highlighted the introduction of Accredited Pension Agents designed to extend pension access into markets, farms, workshops, and communities through proximity-driven engagement and technology-enabled mobilisation.

She noted that the framework aligns incentives between agents and Pension Fund Administrators while linking compensation to sustained contributions and participant retention.

PenCom recently issued the first APA licence to Awabah, with additional fintechs, cooperatives, telecommunications firms, and payment platforms expected to participate as the initiative scales.

Oloworaran said the policy supports the broader economic priorities of President Bola Tinubu, particularly efforts aimed at financial inclusion and domestic capital formation.

The Commission expects the initiative to drive deeper pension penetration across underserved segments while transforming informal earnings into structured long-term savings capable of supporting national investment priorities.