Stakeholders in the Nigerian pension industry worried about the slow pace of informal sector enrolment into the country’s Micro Pension Plan (MPP) are considering workable models in Rwanda, Kenya among others.
They believe that they lack of critical incentives like co-contributions, free healthcare and insurance found in micro pension scheme in these other countries are making the Nigerian model unattractive to potential enrolees.
In this vein, the industry including the regulator, the National Pension Commission (PenCom) and the Pension Fund Administrators (PFAs) has recently suspended its planned awareness campaign to review the plan and find ways to make it more attractive to enrolees.
As at the end of March 2023, the MPP has enrolled 93, 225 participants in the informal sector, according to data from PenCom.
Abdulqadir Dahiru, head of Corporate Communications Department PenCom speaking on the sideline of a one-day workshop organised by the Commission for journalist in Lagos said the Commission is aware of the slow pace in MPP enrolment and has decided that there will be need to review the product.
According to him, co-contribution in Rwanda and Kenya is what is making their own scheme attractive to the informal sector workers, but expressed concern on what such package will mean for the Nigerian government at a time like this.
