The National Pension Board of Nigeria says it is working on plans to make micro pension schemes attractive to the self-employed and others in the informal sector.
This was stated at the National Pension Commission special day at the Lagos International Trade Fair, Tafawa Balewa Square, Lagos Island, on Friday.
The Pension Reform Act, of 2014, expands the CPS coverage to self-employed workers and workers in establishments with less than 3 employees.
The micro-insurance scheme is designed to cover low-income earners, high-income earners and small and medium enterprises in the informal sector.
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This special day is to raise public awareness of the inclusion of informal workers and self-employed workers in retirement plans through small pension schemes.
Speaking to journalists at the event, Dr. Babatunde Alayande, Head of the Small Business Unit of PenCom, explained that the small pension scheme is not only for the informal sector but also for individuals who are professionals such as self-employed lawyers, urban planners, engineers etc.
One of the issues that the committee decided on was the need to change the name of the “small pension” so that everyone would know that this goes beyond illegal activities, he added.
The Committee is working to ensure that there are incentives for those who participate in these small pension schemes, particularly in the informal sector.
One of the Committee’s focuses on this issue is the need for informal workers to be supported through basic health insurance schemes so that they can not only receive and save money but also receive other benefits.
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The Committee ensures that contributions to a small pension scheme are flexible and that you can contribute daily, weekly, monthly or quarterly depending on the type of work you do.
