The Micro Pension Plan (MPP) is making significant strides in enhancing financial inclusion among Nigeria’s informal sector workers. Since its launch, the MPP continues to attract a number of contributors, offering a vital safety net for individuals who typically lack access to formal retirement savings options.
The National Pension Commission (PenCom) introduced the MPP with the specific objective of broadening pension coverage to include workers in the informal sector. Under the MPP, private sector organisations with less than three employees and self-employed individuals are given an opportunity to participate in the Contributory Pension Scheme (CPS). This lofty provision of the Pension Reform Act (PRA) 2014, provides a reliable retirement savings platform for the informal sector, which is reputed to be the largest employer in Nigeria.
