90% of workers in informal sector have no pension benefits, says PenCom

 

Aisha Dahir-Umar, Director-General/CEO, National Pension Commission (PenCom)

By Bankole Orimisan

The National Pension Commission (PenCom) said about 90 per cent of employees in the public sector are not enrolled in the Macro Pension Plan.

It said that bringing them into space is important to address the risk of old age poverty.
According to the commission, the Micro Pension Plan platform provides workers in the sector opportunity to register for secured pensions and contribute flexibly.

The scheme is such that the artisans and traders can register with and agree on a periodic amount they will be contributing according to their earnings. Approximately 59.6 million Nigerians are engaged in the informal sector.

The Head of Corporate Communications of PenCom, Abdulqadir Dahiru, in a paper delivered in Enugu state, at an event to educate Nigerians about the micro pension plan, at the weekend, explained that contributors in the informal sector can even draw 40 per cent of what they have saved for an emergency demand while the balance is kept till retirement.

“It is a means of savings also for those in the informal sector and where they could fall back to and get financial assistance to keep their daily engagements going,” he said.

He said PenCom is desirous to ensure Nigerians in the informal sector register in the plan, adding that the commission is committed to sensitizing Nigerians about it.

Dahiru also urged contributors to embrace PenCom acquisition of residential mortgages (residential houses) scheme.

He recalled that the Central Bank of Nigeria (CBN) has approved 34 mortgage banks to work with the PenCom and pension fund operators in providing mortgage financing to contributors of the Contributory Pension Scheme (CPS).

The PenCom spokesman said the commission was determined to implement the scheme for the contributors to ensure that RSA holders have houses of their own at retirement.