Micro Pension Registrations per PFA as at Dec 2020

May 29, 2022 PensionNigeria

Micro Pension Scheme was launched in March 2019 with a lot of expectations but PFAs have only registered a total of 73,600 informal sector workers under the Micro Pension Plan (MPP) from inception of the MPP in March 2019 to 31 December 2021.

The 73,600 registrations under the Micro Pension Plan from inception to 31 December 2021 is meagre compared to the fact that Nigeria working population is around 80% informal sector, based on data from World Bank.

The above has lead to insinuations in some quarters that PFAs are not trying enough, or they have been over pampered by the mandatory pension scheme for the formal sector which assures steady flow of funds to PFAs.

We decided to take a look at the Micro Pension registrations per PFA and the most recent report available from the National PenCom Commission (PenCom) on this is as at 31 December 2020 when the total Micro Pension registrations by PFAs was 62,463.

The report shows that ARM Pension, Stanbic IBTC Pension, Fidelity Pension, Premium Pension and PAL PFA are the Top 5 PFAs with highest micro pension registrations.

PensionNigeria believes that more needs to be done on Micro Pension registrations, the estimated less than 100,000 registrations after 3 years launch of the Micro Pension Scheme in Nigeria is not impressive, considering the fact that 80% of the Nigeria working population is in the informal sector.

See below Table showing Micro Pension Registrations per PFA as at Dec 2020

Micro Pension Plan (MPP) is a pension plan under the Contributory Pension Scheme (CPS) that allows people who are not mandatorily covered by the Pension Reform Act 2014 make financial contributions towards the provision of pension at their retirement or incapacitation.

Micro Pension was introduced in March 2019 and it is voluntary for Persons working in organizations with less than three (3) employees and people working in the informal sector e.g, market women, carpenter, plumbers, mechanic, ride hailing drivers etc, can all open a Micro Pension Account with any Pension Fund Administrator (PFA) of their choice except NUPEMCO and Nigeria Police Force PFA.

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