Leadway Pensure PFA Limited has said Nigeria’s Personal Pension Plan will transform how small business owners save for retirement, making contributions more flexible and accessible.
The company stated that the Personal Pension Plan is a key initiative for Nigeria’s economic development, particularly as a large portion of the workforce operates within the informal sector.
It noted that informal employment remains significantly high, making structured retirement savings systems less accessible to many Nigerians.
Leadway Pensure said the Personal Pension Plan offers flexible contribution options that align with the income patterns of small business owners and self-employed individuals.
According to the Managing Director and Chief Executive Officer, Olusakin Labeodan, small businesses play a central role in Nigeria’s economy but often lack structured retirement planning.
He said: “Small businesses are Nigeria’s economic backbone, yet many owners lack disciplined retirement security.”
Labeodan added that the plan allows contributors to make payments that reflect their income realities, helping them build financial security over time.
He noted that with increased participation, the initiative can help reduce the risk of poverty in old age and support long-term financial stability for business owners.
The company referenced data from the National Pension Commission, which shows a gap between registration and active participation.
According to PenCom’s third-quarter 2025 report, more than 200,000 workers had registered for Personal Pension Plan accounts as of September 30, 2025.
However, only 7.6 percent of those accounts were funded during the period, indicating low active participation.
Leadway Pensure said this gap highlights the need for increased awareness and adoption among informal sector workers and small business owners.
The firm stated that the Personal Pension Plan provides a pathway for entrepreneurs to build savings gradually while managing business demands.
It explained that flexible contributions can be made based on income flow, allowing participants to maintain consistency in savings without fixed obligations.
The company also emphasised that broader adoption of the scheme could contribute to financial inclusion and long-term economic stability.
Leadway Pensure said wider participation in the Personal Pension Plan could strengthen retirement security among small business owners and reduce financial vulnerability in later years.
