By David Akinmola
Nigeria’s pension industry stakeholders have stressed the need for a renewed national focus on financial literacy as a major catalyst for deepening pension participation and unlocking the economic potential of the growing micro pension market.
Parthian Pensions Limited, one of the newly licensed Pension Fund Administrators (PFAs), said improved understanding of the contributory pension system is crucial to bringing millions of informal sector workers into the formal savings net and boosting long-term funds available for investment in the economy.
Speaking at the industry forum that involving stakeholders in Lagos, the Head of Operations, Parthian Pensions, Adetunbi Ashaye, urged operators and regulators to intensify public education on the benefits of pension participation.
Ashaye noted that many Nigerians still misunderstand the objectives of the Contributory Pension Scheme (CPS), which replaced the prvious unfunded and unsustainable defined benefit model that left thousands of retires without savings.
“What really need to happen is a stronger drive for financial literacy because many people in Nigeria still see pension as insignificant,” Ashaye said, “The contributory pension scheme is funded, regulated, and ensures that workers can live decent lives after retirement. We must continue to educate the public on this”
He explained that increased participantion in the CPS not only secures financial stability for individuals but also strengthens Nigeria’s macroeconomic base through the accumulation of long-term domestic savings.
“The impact of the scheme goes beyond individuals it contributes to macroeconomic stability by creating a pool of investible funds that supports infrastructure and capital market development,” he said.
With total pension asset projected to reach N29 trillion by the end of 2025, Ashaye said the industry continues to show resilience despite economic headwinds. In the first quarter of this year alone, pension fund administrators disbursed N79 billion under Programme Withdrwals and N54 billion through Annuity payments.
He commended the PenCom for maintaining transparency and regulatory discipline through asset classification and reporting systems that have sustained public confidence in the scheme.
Ashaye said Parthian Pension plans to leverage technology and innovation to expand participation in the micro pension segment, which targets the over 70 to 80 million Nigerians working in the informal sector who are yet to join the pension system.
“We are technology-driven and intend to simplify and digitize the micro pension process. Our gaol is not to compete for existing Retirement Savings Account (RSA) holders but to bring new contributors into the pension safety net,” he said.
Earlier market analysts estimate that if just 10 per cent of Nigeria’s informal workforce is enrolled under the micro pension plan, the sector could generate over N3 trillion in additional long-term funds within five years. Such inflow, they argue, could expand the domestic savings base, strengthen the capital market, and boost funding for infrastructure and industrial projects.
Industry experts at the conference also highlighted the pension sector’s role in the government’s $1 trillion GDP ambition, nothing that collaboration between pension, insurance, and capital markets is key to mobilising domestic capital for sustainable growth.
They suggested that there is a need to help Nigerians understand that pensions are not a tax or a burden but an investment in dignity and poverty and prosperity in retirement.
They also believe that with expanded coverage through the micro pension scheme and sustained public education, Nigeria’s pension assets could exceed N35 trillion by 2030, creating one of Africa’s stronger domestic capital market and a stable pool of funds for long term national development.
