By David Akinmola
A new entrant in the industry, Parthian Pensions Limited has called for a national drive to improve financial literacy as part of efforts to integrate the estimated 70 to 80 million Nigerians currently excluded from the formal pension system.
The Pension Fund Administrator (PFA) one of the new entrants into Nigeria’s pension space said it is targeting the largely untapped micro pension segment to drive inclusion and expand retirement security among informal sector workers.
Speaking at a pension industry forum in Lagos, the Managing Director, Parthian Pension,Olufemi Odukoya, said many Nigerians remain outside the Contributory Pension Scheme (CPS) due to low awareness and deep-seated misconceptions about the system.
“We are one of the new entrants in the industry, but that doesn’t mean we lack capacity. We leverage technology for efficient service delivery and intend to flood the micro-pension space, which remain largely untapped. About 70 to 80 million Nigerians are in this category,”Odukoya said.
He noted that despite the CPS providing a structured and regulated savings framework, some workers still perceive pensions as unimportant or inaccessible.”Many people clamoring to exit the scheme have forgotten why it was established to replace the old, unfunded pension system. The current scheme is contributory, fully funded and well-regulated. What we need to do now is drive financial literacy so that Nigerians understand the long-term benefits,” he explained.
Odukoya argued that the success of the pension industry depends on its ability to reach the informal economy from market traders to artisans by simplifying products and adopting digital tools. “The future of the pension industry lies in simplifying and digitalizing micro-pension plans.
We must diversify in different ways to reach everyone, regardless of income level,” he added.
He pointed out that cultural attitudes toward saving remain a barrier, as many Nigerians prioritise immediate needs over long-term financial planning. “People often see insurance and pension as unnecessary because they are focused on meeting daily survival needs food, shelter, clothing. This mindset underscores the importance of education and financial inclusion,” he said.
Highlighting recent data, the Head of Operations of the PFA, Adetunbi Ashaye, disclosed that pension assets are projected to hit N29 trillion by the end of 2025, buoyed by increased transparency and regulatory oversight from the National Pension Commission(PenCom). “In the first quarter of 2025 alone, N79 billion was paid out for Programme Withdrawals and N54 billion for Annuities. These figure show that the system woerks it’s transparent and accountable,” he said
Industry observers have also identified the micro-pension segment as the next frontier for Nigeria’s pension growth, given the sheer size of the informal workforce. Experts say closing the pension inclusion gap will not only secure millions of Nigerians in retirement but also provide a stable pool of long-term domestic capital for national development.
Ashaye stressed that Parthian Pensions is positioning itself as a technology driven fund administrator with a focus on transparency, accessibility and customer education. “Financial literacy is the foundation. Once people understand how pensions secure their future, participation will naturally follow,” he noted.
