Employees to ride on Personal Pension Plan for bigger retirement package
Employees can now save side hustles into their Personal Pension Plan (PPP), in addition to what their employers are contributing under the Contributory Pension Scheme (CPS). This is not only going to boost retirement package, it will result in bigger playouts.
The new PPP Regulation introduces greater flexibility in contributions and withdrawals, digital registration processes, and broader investment options.
It allows individuals to contribute directly without relying on an employer, ensuring that their funds continue to grow under the Contributory Pension Scheme (CPS) framework.
In 2025, the MPP evolved into the Personal Pension Plan (PPP) a restructured and more inclusive model aimed at expanding coverage and improving participation. The transition reflects PenCom’s commitment to making pension saving accessible to everyone, including professionals, freelancers, and Nigerians in the diaspora who wish to contribute independently.
Micro Pension Plan (MPP), which transited into the PPP was introduced in 2019 by the National Pension Commission (PenCom) to extend pension coverage to self-employed individuals and workers in the informal sector.
It was designed to help artisans, traders, transport operators, and other informal earners build savings towards retirement, promoting financial inclusion and old-age security.
Over the past five years, the plan has recorded remarkable growth, from N185.18 million in August 2021 to N1.58 billion in August 2025. This represents an increase of over 750 percent in five years, this reflects increasing awareness, confidence, and participation among Nigerians seeking to take charge of their retirement planning.
The evolution from the Micro Pension Plan to the Personal Pension Plan marks a major milestone in Nigeria’s pension landscape, driving inclusiveness and enabling more people to secure their financial future, regardless of where or how they work.
