Diaspora, self-employed Nigerian now part of pension scheme

Self-employed and Diaspora Nigerians, including informal sector workers can now participate in the contributory Pension Scheme.

The National Pension Commission said it has extended the drag net to them under its Pension 2.0 reforms. Only those with salaried jobs were part of the contributory pension scheme until this new arrangement.

The Director-General of PenCom, Omolola Oloworaran, announced this on Tuesday at the commission’s 2026 Customer Service Week seminar with the theme “Extra mile.”

Oloworaran said: “Under Pension 2.0, the Commission has introduced several landmark regulatory instruments. Among these is the Guideline on the Administration of Retirement Savings Accounts in Foreign Currency, which provides a framework for Nigerians working in foreign companies and Nigerians working abroad to participate in the CPS.’’

She explained PenCom is also seeking to bring more self-employed and informal sector workers into the pension system through the Personal Pension Plan.

According to her: “Equally transformative is the Guideline on the Personal Pension Plan designed to bring self-employed persons and informal sector workers into the Contributory Pension Scheme.”

The initiative, according to her, is intended to break barriers to pension participation and enable Nigerians to build retirement savings regardless of their income or occupation.

To extend the scheme to underserved groups, she said PenCom had developed a framework for accredited pension agents who would market the Personal Pension Plan nationwide.

The commission has also issued revised corporate governance guidelines for Licensed Pension Fund Operators and introduced recapitalisation requirements aimed at strengthening their financial resilience and safeguarding pension assets.

Oloworaran said the reforms were expected to promote a more stable, efficient and competitive pension industry while improving services to contributors and retirees.

“Pension 2.0 is not merely about reform; it is about transforming the customer experience. It is about ensuring that contributors are protected and can access their retirement savings accounts seamlessly and promptly,” she added.

Oloworaran said PenCom would continue to improve its service culture, strengthen communication and enhance digital platforms through which contributors and retirees interact with the pension system.

The National Chairman of the Nigeria Union of Pensioners, Contributory Pension Scheme Sector, Mr Sylva Nwaiwu, said improvements in pension administration had helped strengthen the CPS and create better channels for resolving complaints.

Nwaiwu identified the payment of pension increase backlogs dating to 2007 and the restoration of regular payment of accrued pension rights as some of the progress recorded in the sector.

He also cited periodic pension enhancements, the PENCARE healthcare initiative and expansion of pension coverage among notable developments.