Parthian Pensions Limited, one of Nigeria’s newly licensed Pension Fund Administrators (PFAs), has announced plans to focus on the micro pension market as part of its strategy to expand its Retirement Savings Account (RSA) base and promote pension inclusion among low-income earners.
Speaking at the 10th National Conference and Anniversary of the Nigerian Association of Insurance and Pension Editors (NAIPE) held in Lagos, the company’s Head of Operations, Mr. Adetunbi Ashaye, urged stakeholders in the pension industry to intensify efforts in educating Nigerians on the benefits of the Contributory Pension Scheme (CPS).
Driving Financial Literacy and Pension Awareness
Ashaye emphasized that a lack of financial literacy remains one of the major barriers to pension participation in Nigeria. He noted that many Nigerians still view pension contributions as unimportant or inaccessible, particularly those in the informal sector.
“What we really need to focus on is driving financial literacy,” he said. “Many people still see pensions as insignificant, but the reality is that a well-funded and regulated pension system guarantees a secure future after active work life.”
He explained that unlike the old, unfunded pension system that left many retirees stranded, the current Contributory Pension Scheme ensures financial sustainability through joint contributions from employers and employees, under strict regulatory oversight.
Micro Pension: Bridging the Gap
Ashaye highlighted that many Nigerians, particularly those in the informal sector, struggle with prioritizing long-term savings over immediate needs such as food, shelter, and clothing. This, he said, reinforces the need for the Micro Pension Plan (MPP)—a scheme designed to bring artisans, traders, and self-employed individuals into the pension net.
“People often ask, ‘Why should I save for retirement when I can barely meet my daily needs?’ This is exactly where the micro pension plan comes in,” he explained. “It allows individuals to save small amounts over time and still enjoy the benefits of a structured retirement plan.”
Sustaining Confidence in the Pension Industry
Addressing concerns from those advocating to exit the current scheme, Ashaye reminded participants that the CPS was introduced to address the failures of the previous, unfunded pension system. “The reason we have the new scheme is because the old one did not work. Today’s pension structure is funded, transparent, and secure,” he said.
He called on industry operators, regulators, and the media to continue sensitizing Nigerians about the importance of saving for retirement, stressing that sustained education and awareness will strengthen confidence in the pension system and drive inclusion across all income levels.
