The Micro Pension Scheme was established part of the Federal Government’s efforts to boost financial inclusion policy through the National Pension Commission (PenCom) which was launched March 28, 2019 officially by the President Muhammadu Buhari from the Presidential Villa in Abuja. That Micro Pension Plan (MPP) under the new pension scheme after 18 months of it birthed has reached about 51, 974 subscribers of informal sector workers have contributed N42.1 million as contributions into their Retirement Savings Accounts (RSAs) as at 30th of June, 2020.
The report further disclosed that the initial plan was aimed as part of the Government’s plans to ensure that hardworking Nigerians live in dignity and retire in peace when due.
The stated document released tagged ‘second quarter 2020 report from the National Pension Commission (PenCom), over the weekend, also shows that the Pension Fund Administrators (PFAs) registered 2,839 contributors under the MPP in the second quarter of 2020, adding that, MPP subscribers contributed N7.4 million in the second quarter alone.
PenCom noted that during the quarter, six participants converted from MPP to the mandatory Contributory Pension Scheme (CPS) sequel to securing employment in the formal sector, stressing that, this brought the total number of MPP participants who had converted to the mandatory CPS to 18 as at 30th June 2020.
Also, it was stated that, over N32.32 million of micro pension contributions have been invested as at June 2020, the commission added that, it had maintained its effort to enlighten and educate informal sector workers on the enormous advantages of the micro pension plan.
The acting director-general, PenCom, Mrs Aisha Dahir Umar, had earlier said, Micro Pension Plan, which was established through the Provisions of Section 2(3) of the Pension Reform Act (PRA) 2014, was aimed at ensuring that the informal sector participants save towards their old age, adding that, this category of workers constitutes a large percentage of the working population in the country.
The plan, she said, was meant for the self-employed and persons working in organisations with less than three employees, adding that, this category of workers constitutes the larger segment of working population in the country..
Reacting to this development, at the weekend, the managing director/CEO, IEI-Anchor Pension Managers Limited, Mr Glory Etaduovie, said micro pension concept remains a very strong business growth potential, although, would require patience, good entry strategies and needed business aggression with clear vision of the task ahead.
He stated that over 60 per cent of the country’s population fall under the informal sector and are largely unharnessed, adding that a deliberate policy and plan would be required to drive this.