Leadway Pensure PFA Limited has identified Nigeria’s Personal Pension Plan, PPP, as a major pathway for improving retirement security among small business owners and self-employed workers, warning that limited pension participation could worsen old-age poverty if left unaddressed.
The pension fund administrator said the flexibility built into the PPP framework makes it suitable for Nigeria’s largely informal economy, where millions of economically active citizens operate outside structured employer-based pension schemes. The company stressed that enabling artisans, traders, and micro-entrepreneurs to save consistently for retirement is essential to long-term economic stability.
Brandspur Banking News Desk reports that the push for wider PPP adoption comes amid persistently high informal employment levels. Data from the National Bureau of Statistics shows that informal employment accounted for 92.7 per cent of Nigeria’s workforce in the first quarter of 2024, up from 92.3 per cent in the third quarter of 2023. This trend highlights the scale of workers currently excluded from conventional pension arrangements.
At the same time, Nigeria’s formal pension industry continues to expand. Figures released by the National Pension Commission indicate that total pension assets stood at ₦27.451 trillion as of December 31, 2025, with more than 11 million registered Retirement Savings Account holders. Industry analysts say these numbers demonstrate both the strength of the existing system and the untapped opportunity within the informal sector.
Despite this potential, participation in the Personal Pension Plan remains limited. PenCom’s third-quarter 2025 report shows that while over 200,000 PPP accounts had been registered by September 30, 2025, only 7.6 per cent of those accounts recorded active contributions during the period, pointing to a significant gap between awareness and sustained funding.
Commenting on the development, Olusakin Labeodan, Managing Director and Chief Executive Officer of Leadway Pensure PFA, said small business owners form the backbone of Nigeria’s economy but often lack structured retirement planning. He noted that the PPP allows contributors to save in line with their income patterns, making it easier to build long-term financial security while running their businesses.
He added that increasing participation will depend on continuous education, simplified enrolment, and digital access. According to him, Leadway Pensure’s renewed awareness drive will focus on helping informal workers understand how to open PPP accounts, make flexible contributions monthly, quarterly, or as lump sums, monitor their savings digitally, and access advisory support.
The company urged self-employed Nigerians and small business operators to take advantage of the Personal Pension Plan, describing it as a practical tool for securing financial stability and dignity in retirement while supporting inclusive economic growth.
