PenCom targets 9 million informal transport workers in pension inclusion drive

…explore pension-linked financing for modern mass transit vehicles

The National Pension Commission (PenCom) has commenced discussions with the National Union of Road Transport Workers (NURTW) on an initiative aimed at bringing an estimated nine million transport workers into the Personal Pension Plan (PPP) under Nigeria’s Contributory Pension Scheme (CPS).

The proposed partnership was unveiled during a courtesy visit by Alhaji Musiliu Akinsanya, the National President of NURTW, popularly known as MC Oluomo, to Omolola Oloworaran, director-general of PenCom, at the Commission’s headquarters in Abuja.

According to a statement signed by the commission on Wednesday, the meeting, which was attended by senior officials from both organisations, focused on expanding pension coverage for transport workers in the informal sector and exploring innovative financing mechanisms to support the acquisition of modern mass-transit vehicles across the country.

Speaking during the engagement, Akinsanya said the union’s extensive nationwide structure and estimated membership of nine million transport workers operating across motor parks, logistics corridors, interstate routes and urban transport networks provide a unique opportunity to deepen pension and financial inclusion among workers traditionally excluded from formal retirement savings schemes.

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He disclosed that the union had proposed a three-pronged partnership framework comprising the mass enrolment of transport workers into the Personal Pension Plan, the deployment of an automated daily pension contribution system integrated into existing transport revenue collection platforms, and the establishment of a National Transport Workers Mobility Enhancement Programme.

According to him, the programme is designed to facilitate access to modern vehicles through structured financing arrangements while promoting long-term financial security for transport operators.

A key component of the proposal is the creation of a sustainable financing framework that would enable transport workers and operators to acquire buses and other transport infrastructure through support from development finance institutions, commercial banks and other stakeholders.

Under the proposed arrangement, daily collections from transport operators would be channelled through existing union structures to service vehicle financing obligations while simultaneously funding individual Personal Pension Plan accounts.

Akinsanya said the model is expected to improve repayment efficiency, reduce financing risks and encourage a culture of savings among transport workers, many of whom currently lack access to formal pension schemes.

“A key component of the proposal is the establishment of a sustainable financing framework that would enable transport operators to acquire buses and other transport infrastructure through support from development finance institutions, commercial banks and other stakeholders.

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“Under the model, daily collections from transport operators would be channelled through existing union structures to service vehicle financing obligations while simultaneously funding individual Personal Pension Plan Accounts,” the statement read

In her response, the director general of PenCom welcomed the initiative and commended the NURTW leadership for pursuing sustainable social protection and economic empowerment solutions for its members.

She described the proposal as a bold intervention capable of significantly advancing pension inclusion in the informal sector while contributing to broader economic development objectives.

Oloworaran reaffirmed PenCom’s commitment to collaborating with the union and other stakeholders to explore practical pathways for implementing the proposed reforms.

She noted that expanding pension coverage remains a key priority for the Commission and aligns with ongoing efforts to strengthen financial inclusion and improve the economic well-being of Nigerians.

According to her, the proposed partnership also supports critical objectives of the federal government’s Renewed Hope Agenda, particularly in the areas of social protection, poverty reduction, economic empowerment, financial inclusion and transportation sector reform.

The PenCom boss described the initiative as one of the most ambitious pension inclusion programmes targeting Nigeria’s informal sector in recent years.

She added that successful implementation could significantly expand the country’s pension contributor base, enhance retirement security for millions of transport workers and establish a sustainable framework for modernising public transportation nationwide.