• PenCom licenses Awabah as the first approved pension agent
• Move targets informal and self-employed workers under the micro pension scheme
• Reform aims to widen coverage in a sector employing over 65% of the workforce

Nigeria’s pension regulator, the National Pension Commission, said on February 7, 2026, that it had granted Awabah a license as a pension agent authorized to enroll contributors under the micro pension scheme.

The approval makes Awabah the first licensed agent tasked with expanding access to the pension system for self-employed and informal sector workers, including artisans, traders, freelancers, consultants, and professionals.

The micro pension scheme is designed to integrate workers outside the formal sector who have historically had limited access to pension coverage. Licensed pension agents such as Awabah are authorized to enroll contributors, promote the scheme, and facilitate the collection of pension contributions from new participants.

The move is part of broader reforms launched in 2025, when PenCom issued a regulatory framework formally defining the role of pension agents within Nigeria’s pension system.

Implications for Nigeria’s pension system

The licensing of Awabah marks a major shift in the distribution of pension products in Nigeria. Until now, the inclusion of informal sector workers, who account for more than 65% of the national workforce, relied largely on fragmented and ad hoc initiatives led by pension fund administrators or private sector actors. By creating a dedicated distribution layer, PenCom is formalizing the process, which could accelerate enrollment in the micro pension scheme and strengthen financial and social inclusion.

The new distribution channel also offers pension fund managers an opportunity to increase contribution inflows, diversify revenue streams, and strengthen assets under management. However, the success of the model will depend on effective adoption of the micro pension scheme by informal sector workers.

Achieving this will require tailored communication strategies, financial literacy efforts, and appropriate incentives to address the low level of retirement savings awareness among some self-employed workers.

Chamberline Moko