By Victor Ahiuma-Young
The National Pension Commission, PenCom, has commenced moves to bring millions of transport workers into Nigeria’s pension system through the Personal Pension Plan, PPP, in what could become one of the largest pension inclusion initiatives targeting the informal sector.
The initiative emerged during a meeting between PenCom Director-General, Ms. Omolola Oloworaran, and the National President of the National Union of Road Transport Workers, NURTW, Musiliu Akinsanya, popularly known as MC Oluomo, at the Commission’s headquarters in Abuja.
The proposed partnership is expected to provide pension coverage for an estimated nine million transport workers operating across motor parks, interstate routes, logistics corridors and urban transport networks nationwide.
At the meeting, the NURTW leadership outlined a three-pronged framework aimed at expanding social security coverage for its members.
The proposal includes mass enrolment of transport workers into the Personal Pension Plan, the introduction of an automated daily pension contribution system linked to existing transport revenue collection platforms, and a mobility enhancement programme designed to facilitate access to modern mass-transit vehicles through structured financing arrangements.
Akinsanya said the union’s extensive nationwide structure presents a unique opportunity to deepen pension inclusion among workers who have traditionally remained outside the formal retirement savings system.
According to him, the proposed daily contribution mechanism would allow transport workers to save towards retirement through small but consistent contributions integrated into existing revenue collection processes within the transport sector.
He explained that the model would not only help workers build retirement savings but also support access to vehicle financing. Under the arrangement, daily collections from operators would be used to service vehicle financing obligations while simultaneously funding individual Personal Pension Plan accounts.
The NURTW president noted that the initiative would encourage a culture of long-term savings, improve financial security for transport workers and reduce the vulnerability associated with old age and loss of income.
Responding, Oloworaran welcomed the proposal and described it as a bold step towards expanding pension coverage in Nigeria’s informal economy.
She commended the union’s leadership for pursuing sustainable social protection and economic empowerment initiatives for its members, noting that the proposal aligns with PenCom’s mandate to broaden pension participation and strengthen financial inclusion.
The PenCom boss reaffirmed the Commission’s commitment to working with the union and other stakeholders to develop practical frameworks for implementing the initiative.
According to her, expanding pension coverage remains a key priority for the Commission, particularly among informal sector workers who constitute a significant proportion of Nigeria’s workforce but remain largely excluded from retirement protection schemes.
Oloworaran further stated that the proposed collaboration supports the Federal Government’s Renewed Hope Agenda by promoting social protection, poverty reduction, financial inclusion and economic empowerment.
She described the initiative as one of the most ambitious pension inclusion programmes in recent years, adding that its successful implementation could significantly increase the country’s pension contributor base while enhancing retirement security for millions of transport workers.
Both PenCom and NURTW expressed optimism that the partnership would evolve into a flagship national programme capable of transforming pension participation in the informal sector and extending social security coverage to millions of previously underserved workers across the country.
