Data shows that 73,600 informal sector workers have registered under the Contributory Pension Scheme as of the end of December 2021.
This is according to figures obtained from the (National Pension Commission) PenCom’s latest quarterly report. The inclusion of the informal sector workers in the Contributory Pension Scheme is indicative of the progress made in Nigerians’ drive for financial inclusion.
Given Nigerian’s population of above 200 million, it would be fair to say that more work needs to be done to accommodate the size of Nigeria’s informal sector.
What PenCom report is saying
PenCom stated that 73,600 individuals from the informal sector contributed to CPS.
“Nineteen (19) PFAs registered 2,166 contributors during the quarter under review. This brought the total number of Micro Pension contributors to 73,600 as of 31 December 2021. Similarly, the sum of N25,094,874.26 was credited into the RSAs of 8,260 MPP Contributors in Q4 2021, bringing the total value of the Micro Pension Fund to N224,054,870.69 as at end of the quarter under review,” it said.
PenCom also revealed that the total contribution of informal sector workers increased by N16.71 million to N106.3 million as of the end of March 2021, up from N89.68 million at the end of December 2020.
Micro pension registration and contribution during the first quarter showed that Pension Fund Administrators enrolled 3,292 contributors under the Micro Pension Plan, according to the report.
PenCom also stated that thirty-nine (39) Micro Pension Participants converted to the Mandatory CPS and the sum of N596,339.27 was transferred to their respective RSAs. This brings the total conversion balance to N3,680,292.77 from 259 Micro Pension Contributors as of 31 December 2021.
What you should know
- A 2018 ILO estimate shows that 93% of all employment in Nigeria is informal, with 95% of women working in the informal sector as compared to 90% of men.
- Given Nigerian’s population of above 200 million, it would be fair to say that more work needs to be done to accommodate the size of Nigeria’s informal sector.
- SBM intelligence revealed that 40% of Nigerians say in the unregulated informal sector, they are being owed wages.
- Recall in another report, SBM revealed that up to 98% of Nigerians operating in the informal economy pay taxes daily, with some businesses paying taxes 3 times a day. In Lagos, for instance, some bus drivers pay as much as N3,000 a day in taxes to different groups.