Micro Pension Contributions Rise Ninefold to N1.46bn in Four Years

Nigeria’s Personal Pension Plan (PPP), formerly the Micro Pension Plan (MPP), has recorded a sharp surge in adoption, with contributions rising ninefold to N1.46 billion between June 2021 and June 2025.

The Pension Fund Operators Association of Nigeria (PenOp) said the scheme’s rapid growth highlights its expanding role in driving financial inclusion for workers outside the formal pension system.

Figures released by PenOp show the PPP grew from N168.63 million in June 2021 to N285.31 million in June 2022, then climbed to N500.63 million by June 2023. Contributions further accelerated to N867.72 million in June 2024 and peaked at N1.46 billion as of June 2025.

PenOp Chief Executive Officer, Mr Oguche Agudah, speaking in Lagos, described the trend as a significant milestone for the pension industry, noting that the scheme’s rebranding was designed to attract younger Nigerians, gig workers, and the informal sector.

“The plan has grown nearly nine times in four years, showing its capacity to bridge pension coverage gaps and deliver sustainable retirement savings to millions of Nigerians,” he said.

The PPP, according to him, embodies flexibility, ownership, and inclusivity, making it better aligned with the realities of Nigeria’s evolving workforce. With informal sector workers representing the bulk of the country’s labour force, the scheme provides an opportunity for contributors to build savings independently, ensuring financial stability at retirement.

Agudah stressed that the PPP is poised to remain central to Nigeria’s financial inclusion strategy, with its success hinging on continued stakeholder collaboration, technology-driven collection methods, and increased public awareness.

He affirmed that broader adoption would further integrate millions of excluded Nigerians into the nation’s pension framework, strengthening long-term savings culture and social security.