PenCom Unveils Awabah to Drive Pension Inclusion for Informal Workers

Ayodeji Ake

The National Pension Commission (PenCom) has launched Awabah as Nigeria’s first Accredited Pension Agent, marking a major push to extend pension coverage to millions of self-employed and informal sector workers.

At the executive launch with the theme: ‘

‘Building Financial Resilience: Securing the Future with Personal Pensions’, the PenCom Director-General, Ms. Omolola Oloworaran, described personal pensions as “vital national economic infrastructure,” saying expanding coverage beyond formal employment is now the commission’s top priority.

She noted that although Nigeria’s pension assets have grown to over N27 trillion with more than 10 million Retirement Savings Accounts, the gains have largely benefited formal sector workers. Citing National Bureau of Statistics data, Oloworaran said over 93 percent of Nigeria’s workforce—more than 75 million people—operates in the informal sector, with most retiring without savings or a safety net.

“Closing the pension gap for informal workers is the next frontier of pension reform,” she said.

According to the DG, the Accredited Pension Agent regulation introduced in September last year is designed to bridge this gap by using trusted community agents to collect micro-contributions and build confidence in the pension system. “They will take pensions to markets, villages, motor parks, farms, and workshops,” she explained.

Technology, she added, would play a central role, enabling Nigerians to save as little as N500 from their phones or make weekly contributions without disrupting their work. Pension contributions under the scheme remain tax-deductible.

“If 2004 secured pensions for the formal worker, this decade must secure pensions for the informal majority,” Oloworaran said, aligning the initiative with President Bola Tinubu’s inclusive growth agenda.

The Chief Executive Officer of Awabah, Tunji Andrew, said the company would leverage existing payment infrastructure to simplify pension registration and contributions nationwide. With its new licence, Awabah plans to drive large-scale adoption of personal pension plans, targeting five million registered customers by 2026.

A key innovation is the integration of pension onboarding with Point of Sale (POS) terminals, in partnership with Moniepoint. Andrew said Nigerians would be able to enroll, contribute, and set up direct debits through any POS terminal across the country.

“You do it once, and you forget about it,” he said, explaining that contributors can authorise automatic monthly deductions at the point of onboarding.

Beyond contributions, Awabah also plans to simplify withdrawals under the personal pension framework.

Contributors are allowed to withdraw up to 50 percent of their savings after the first three months, in line with existing regulations.

“We want pension withdrawals to be as seamless as using an ATM,” Andrew said.

The scheme targets self-employed individuals, rig workers, traders, and artisans, while also allowing salaried workers with existing Retirement Savings Accounts to open additional personal pension accounts.