One of the greatest economic realities confronting Nigeria today is that millions of citizens will retire without any meaningful source of income. While workers in the formal sector are protected under the Contributory Pension Scheme (CPS), the vast majority of Nigerians in the informal economy (traders, artisans, transport operators, freelancers, farmers and other self-employed individuals) remain outside the pension safety net. The Personal Pension Plan (PPP), introduced by the National Pension Commission (PenCom), is therefore a timely intervention that could redefine retirement planning in Nigeria.
The scheme allows existing Retirement Savings Account (RSA) holders to make additional voluntary contributions through their Pension Fund Administrators (PFAs), while also opening the door for self-employed persons and informal sector workers to save towards retirement. By operating through the same RSA, contributors avoid the inconvenience of managing multiple accounts, making the process simple, transparent and cost-effective.
This is a commendable initiative, as one of
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