Pension Expert, Comrade Ivor Takor Intensifies inclusion of informal workers in Contributory Pension Scheme

 PENSION & GRATUITY ARENA

By allcitynews.ng 

Pension Expert, Comrade Ivor Takor has intensified inclusion of informal workers in Contributory Pension Scheme 

Comrade Ivor Takor,  the former President of Non-Academic Staff Union of Educational and Associated Institutions (NASU), who advocated for inclusion of all workers irrespective of field to  make everyone benefit from the CPS.

The call became imperative based on Nigeria’s pension reform agenda that is expanding as part of efforts to improve the welfare of existing retirees, with proposals for a structured gratuity scheme for federal public servants and plans to bring more informal-sector workers into the contributory pension system.

Under the proposed gratuity arrangement, eligible retiring federal public servants could receive benefits of up to 100 per cent of their gross annual salary, subject to the applicable policy framework.

The proposal, alongside initiatives to broaden pension coverage and improve retirees’ access to healthcare, highlights the growing emphasis on strengthening retirement security in Nigeria.

It would be noted that the Director of the Centre for Pension Right Advocacy, Comrade Ivor Takor, who has consistently advocated policies that protect pensioners’ interests, maintained that improved retirement benefits and ensure that pension reforms would translate into tangible improvements in retirees’ living conditions.

Personal Pension Plan targets informal-sector workers

A major component of the ongoing pension reform efforts is the restructuring and rebranding of the Micro Pension Plan as the Personal Pension Plan, an initiative designed to expand retirement savings opportunities beyond the formal employment sector.

The initiative targets self-employed professionals, traders, artisans and other Nigerians who earn their livelihoods outside conventional employer-employee arrangements.

For millions of informal-sector workers, the absence of employer-sponsored pension arrangements makes retirement planning particularly challenging. Many depend on personal savings, family support and income-generating activities to sustain themselves in old age.

Expanding access to pension savings could help address this vulnerability by providing informal-sector workers with a structured mechanism for accumulating retirement funds during their productive years.

Greater participation could also strengthen the contributory pension system by expanding its membership base and improving the long-term sustainability of Nigeria’s pension industry.

However, the success of the Personal Pension Plan will depend on public awareness, accessibility, affordability and the confidence informal-sector workers have in the system’s ability to safeguard their contributions and deliver benefits when needed.

Speaking at the 2026 Media Conference organised by the National Pension Commission (PenCom) in Lagos recently, Takor said expanding pension coverage must go hand in hand with sustained efforts to protect the rights and welfare of existing pensioners, particularly those facing financial hardship after retirement.

He also expressed hope that the PenCare healthcare initiative associated with the pension industry would eventually be extended to pensioners in his category.

“I am looking forward to the time when my category will be part of PenCare for pension operators,” he said.

His expectation reflects a broader concern among retirees that retirement security should encompass not only regular pension payments but also access to affordable healthcare and other essential support services.

Reflecting on the evolution of Nigeria’s modern pension system, Takor recalled the difficulties encountered in attracting financial institutions to participate in the early years of the contributory pension reforms.

As a member of the committee involved in developing the framework that culminated in the Pension Reform Act 2004, he said he witnessed the uncertainty surrounding the establishment of the contributory pension system.

According to him, regulators and other officials had to make considerable efforts to persuade prospective pension operators to obtain licences and participate in the emerging industry.

He recalled that, during the early stages of the reforms, some institutions were reluctant to commit themselves to a pension market whose prospects remained uncertain.

“I know when Commissioners during our board period were moving cap in hand to operators who we thought would be operators begging them to come and apply for licences.

“They were being begged, and they did not believe in the industry. But today, we are seeing acquisitions, we are seeing mergers. That shows that the industry has come to stay,” he said.

The contrast between the industry’s early difficulties and its present consolidation illustrates how regulatory development, institutional participation and government support have helped establish pension administration as an important component of Nigeria’s financial services sector.

Mergers and acquisitions indicate a changing competitive landscape, with operators seeking stronger market positions and greater operational capacity.

Nevertheless, the industry’s progress cannot be measured solely by the number of pension fund administrators, the volume of assets under management or the scale of corporate consolidation.

For workers approaching retirement and pensioners already receiving benefits, Takor said the more immediate concerns remain the security of contributions, timely payment of entitlements, adequate retirement income and access to effective mechanisms for resolving pension-related complaints.

Pension rights advocacy remains central to reform

Takor reaffirmed the Centre for Pension Right Advocacy’s commitment to supporting the development of Nigeria’s pension industry while continuing to press for stronger protection of retirees.

He said the organisation would continue to recognise positive developments in the sector without abandoning its responsibility to draw attention to unresolved challenges affecting pensioners.

“We will not stop to talk about the good things happening in the industry because we know we have just started. It is an industry that will grow from strength to strength and move from glory to glory,” he said.

He also expressed appreciation to the National Pension Commission (PenCom), pension fund operators and the Federal Government for initiatives intended to improve pensioners’ welfare.

“I am happy to stand on behalf of all other pensioners to thank PenCom, pension fund operators and the President for having pensioners in mind,” Takor added.

His remarks highlight the importance of sustained collaboration among the Federal Government, PenCom, pension fund administrators and pensioners’ advocacy groups in ensuring that reforms deliver meaningful results.

While policy changes and industry expansion are important, pensioners’ confidence in the system ultimately depends on whether promised benefits are delivered, outstanding obligations are addressed and retirees can meet their essential living expenses.

Delivering dignity after retirement

Nigeria’s pension reforms face the dual challenge of improving outcomes for existing retirees while extending retirement savings opportunities to millions of workers who remain outside the formal pension system.

The proposed gratuity scheme for eligible federal public servants, the development of the Personal Pension Plan and expectations surrounding healthcare support represent different dimensions of that challenge.

For public servants who have spent decades in government employment, a structured gratuity arrangement could provide an additional financial cushion at the point of retirement, depending on the final policy design and implementation.

For traders, artisans and self-employed professionals, broader access to personal pension savings could help reduce dependence on family members and uncertain income sources in old age.

For existing retirees, however, the priorities remain clear: reliable pension payments, improved purchasing power, access to healthcare and the protection of accrued retirement benefits.

As the industry continues to evolve from the uncertainties of its early years, the ultimate test of Nigeria’s pension reform agenda will be its ability to translate regulatory progress and institutional growth into financial security and dignity for retirees.

The measure of success, therefore, is not simply how large the pension industry becomes, but how effectively it supports the people whose years of work and contributions made that growth possible-From The Revealer

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