Micro pension scheme records mixed performance

The informal sector workers’ interest in micro pension appears to be waning as registration records significant drop in the first quarter of 2023, Q1’23.

However, value of contribution increased during the period.

Micro Pension Plan, MPP, of the National Pension Commission, PenCom, was created four years ago to draw informal sector workers into the Contributory Pension Scheme, CPS.

Vanguard findings from PenCom data show that the number of informal sector workers that joined the scheme dropped quarter-on-quarter by 17.3 per cent to 3,898 in Q1’23 as against 4,715 the scheme recorded in the fourth quarter of 2022, Q4’22.


However, the value of pension contributions received from Micro Pension Contributors, MPCs, in Q1’23 rose by 14.3 per cent to N48.1 billion from N42.1 billion.

Findings from the Q1’23 report of the PenCom, show that 17 Pension Fund Administrators, PFAs, registered MPC in Q1’23 against 18 PFAs recorded in Q4’22.

The data shows that in Q1’23, Stanbic IBTC Pension Managers, ARM Pension Managers and Tangerine APT Pensions registered the largest number of Micro Pension Participants with 2,376; 410; and 320 respectively.

On the other hand, Pensions Alliance Limited, Norrenberger Pensions and Crusader Sterling Pensions Ltd, had the least registration with 15; 10; and 01 respectively in the same period.

The total registered figures since inception of the scheme in 2019 shows that ARM Pension Managers (PFA) Limited, Stanbic IBTC Pension Managers Limited and Tangerine APT led the industry with the largest number of Micro Pension Participants accounting for 22,990 (24.66%); 17,338 (18.60%); and 7,331(7.86%) respectively, as at 31 March 2023.


The report stated: “A breakdown of the pension contributions received in Q1’23 showed that Stanbic IBTC Pension Managers Limited, ARM Pension Managers (PFA) Limited and Premium Pensions Limited had the highest pension contributions within the period with N24.1 billion; N7.7 billion and N3.5 billion respectively. However, the PFAs with the lowest contributions were Norrenberger Pensions, Oak Pensions Limited, and Radix Pensions Limited with N13.2 million N11.4 million and N9 million respectively.


“Out of the total pension contributions received, Stanbic IBTC Pension Managers Limited, ARM Pension Managers (PFA) Limited and Fidelity Pension Managers Limited accounted for the largest amount with N184.4 billion; N57.9 billion and N40.8 billion representing 44.32%, 13.93% and 9.79% respectively as at 31 March 2023.

“Four PFAs processed and approved MPP contingent withdrawals for 13 MPCs amounting to N2.9 billion in Q1’23. This brings the total contingent withdrawals to N29.1 billion from 149 MPCs as at 31 March 2023.”
While lamenting the decline in micro pension registration at a forum in Lagos last month, PenCom noted that PFAs has been lackadaisical in creating awareness on the scheme.

The development compelled the regulatory body to mandate PFAs to submit annual plans on awareness creation on the micro pension scheme or face sanction.