Just In: PenCom, NURTW Target Nine Million Transport Workers for Pension Inclusion

The National Pension Commission (PenCom) and the National Union of Road Transport Workers (NURTW) have initiated discussions aimed at bringing an estimated nine million transport sector employees under the umbrella of Nigeria’s Contributory Pension Scheme, specifically through the Personal Pension Plan.

This significant development was announced in a statement released by PenCom on Wednesday, following a courtesy visit to PenCom’s headquarters in Abuja. The NURTW National President, Musiliu Akinsanya, widely known as MC Oluomo, met with the Director-General of PenCom, Omolola Oloworaran, to formalize these talks.

The core of their engagement revolved around extending pension coverage to informal sector transport workers and exploring viable financing strategies to facilitate the acquisition of contemporary mass-transit vehicles across the nation. PenCom emphasized that this proposed collaboration holds the potential to substantially enhance both pension and financial inclusion for transport professionals operating in diverse settings, including motor parks, logistics corridors, interstate routes, and urban transport networks nationwide.

During the meeting, Mr. Akinsanya highlighted the NURTW’s extensive national reach and large membership as a prime opportunity to integrate workers who have historically been excluded from formal pension systems. He presented a three-part partnership proposal: mass enrollment of transport workers into the Personal Pension Plan, implementation of an automated daily pension contribution system linked to existing transport revenue collection platforms, and the establishment of a National Transport Workers Mobility Enhancement Programme.

According to Akinsanya, the mobility enhancement programme is designed to help transport operators access modern vehicles through structured financial arrangements. “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,” the PenCom statement quoted him as saying.

Under this innovative framework, daily earnings collected from transport operators would be channeled through existing union mechanisms. These funds would simultaneously service vehicle financing obligations and contribute to individual Personal Pension Plan accounts. Akinsanya projected that this model would boost repayment efficiency, mitigate financing risks, and cultivate a culture of long-term savings among transport workers, many of whom have traditionally operated outside the formal pension system.

In her response, Ms. Oloworaran lauded the proposal, commending the NURTW leadership for pursuing sustainable social protection and economic empowerment initiatives for its members. She described the plan as “a bold intervention that could significantly advance pension inclusion in the informal sector and contribute to broader economic development goals.”

The PenCom boss reiterated the commission’s dedication to collaborating with the union and other stakeholders to forge practical implementation strategies. She underscored that expanding pension coverage remains a top priority for PenCom, noting that the proposal aligns perfectly with ongoing efforts to bolster financial inclusion and improve the economic well-being of Nigerians.

Oloworaran further stated that the proposed partnership supports key pillars of the Federal Government’s Renewed Hope Agenda, particularly focusing on social protection, poverty reduction, economic empowerment, financial inclusion, and transportation sector reform. She hailed the initiative as one of the most ambitious drives for pension inclusion targeting Nigeria’s informal sector in recent memory. Oloworaran also added that “The successful implementation could significantly expand the country’s pension contributor base, enhance retirement security for millions of transport workers and create a sustainable framework for modernising public transportation nationwide.”

Both organizations expressed confidence that this partnership could evolve into a flagship national programme, delivering extensive socio-economic benefits and extending social security coverage to previously underserved segments of Nigeria’s workforce.

The Personal Pension Plan, an initiative by PenCom, offers retirement savings opportunities for self-employed individuals and those in the informal sector who are not mandated to participate in the Contributory Pension Scheme. This scheme allows contributors the flexibility to save for retirement while also providing access to a portion of their contributions under specific conditions.