Nigerian Informal Workers to Access Pensions via POS Terminals in New Initiative
ABUJA — Nigeria’s National Pension Commission (PenCom) has partnered with a fintech startup to enable workers in the vast informal sector to make pension contributions through everyday Point of Sale (POS) terminals, a move aimed at dramatically increasing retirement savings coverage.
Omolola Oloworaran, Director General of PenCom, announced the initiative at an event in Abuja on Monday. The Commission has accredited Awabah as its first pension agent under this new model, allowing informal sector workers to use mobile phones and ubiquitous POS networks for convenient, seamless pension contributions.
The push addresses a critical gap: pension penetration within Nigeria’s informal sector is currently a mere 0.25 percent, which Oloworaran described as effectively zero. “The Nigerian economy is also an informal economy. It means that almost everybody is yet to be covered,” she stated. The strategy is to “take pensions to the street and everywhere in Nigeria to make sure that no Nigerian is left behind in retirement savings.”
Tuji Andrews, Co-founder of Awabah, explained the operational goal. “Our goal is to drive personal pension penetration in Nigeria,” he said. The fintech’s platform will allow Nigerians to “approach any POS to pay for their personal pension” and make regular monthly contributions, transforming pension savings from a formal-sector privilege into an accessible routine for millions.
This initiative targets financial inclusion by leveraging existing commercial infrastructure. Over 90 percent of Nigeria’s workforce operates outside the formal, contributory pension scheme, which is mandatory for organized-sector employees. By integrating pension payments into the daily transactions already handled by POS agents—a common fixture in markets and communities—the barrier to entry for informal workers is significantly reduced.
The partnership between the regulator and a private-sector innovator signals a pragmatic shift in strategy. Rather than expecting informal workers to seek out specialized financial institutions, the system is being brought to them through trusted, local touchpoints. This approach aligns with broader national financial inclusion goals and acknowledges the reality of Nigeria’s cash-based, mobile-money-dominated economy.
Success will depend on widespread adoption by both POS operators and informal workers. If scaled effectively, the model could substantially grow the nation’s pension assets while providing a safety net for a demographic previously excluded from formal retirement planning. The next steps involve rolling out the service nationally and driving public awareness to convert the technical possibility into widespread practice, ultimately strengthening household financial security and national economic resilience.
