President Muhammadu Buhari officially launched the Micro Pension Plan today, at the Presidential Villa in Abuja. During the launching, the President assured pensioners of his administration’s renewed commitment to pension payment despite the meagre resources within government’s disposal.
The president reportedly noted that the initiative is part of the Government’s plans to ensure that hardworking Nigerians live in dignity and retire in peace when due.
What is Micro Pension Plan (MPP)?
The Micro Pension Scheme is part of the Federal Government’s efforts to ensure that all working Nigerians in both formal and informal sector are part of Nigeria’s financial inclusion policy, through the National Pension Commission (PenCom).
PenCom reportedly stated that launching the MPP scheme also attests to the objective of the current administration to provide ample opportunities for economic stability for more Nigerians in the informal sector.
The President disclosed that the MPP is expected to mobilize about N3 trillion savings from the informal sector into the N8.6 trillion pension assets in the country.
“TODAY, MILLIONS OF TRADERS, FARMERS AND OTHER ENTREPRENEURS IN VARIOUS COTTAGE INDUSTRIES ARE COMPLETELY EXCLUDED FROM THE DIFFERENT PENSION PROGRAMS IN EXISTENCE.
“THE MICRO PENSION PLAN IS THE NATURAL NEXT STEP. THE PROGRAM GUARANTEES THAT WHEN THESE HARD-WORKING CITIZENS RETIRE, THEY CAN STILL LIVE IN DIGNITY AND COMFORT.” -PRESIDENT BUHARI
Who Benefits from MPP?
According to the National Pension Commission, its goal is to achieve pension coverage for 30 million people in the informal sector by 2024. Nigeria’s informal sector constitutes an estimated 69 million workforce, which represents an estimated 88 percent of the country’s workers that currently lack pensions for their old age.
Essentially, the MPP is aimed at providing services to self-employed Nigerians in the informal sector and employees with less than three staff.
Hence, the MPP scheme gives professionals, Entertainers, lawyers, doctors, entrepreneurs, artisans and casual workers the opportunities to save.
Earlier, PenCom and the Pension operators have expressed their readiness to ensure MPP covers all, by sensitizing the public through robust campaigns across the federation. PenCom further expressed its commitment towards good corporate governance and high ethical standards that will ensure the success of MPP.
Buhari vows to restore dignity in Public service
However, President Buhari has reportedly vowed to sanitize the rot endemic in Nigeria Civil Service. According to Buhari;
“IN ADDITION TO THIS PROGRAM, WE ARE ALSO WORKING TIRELESSLY TO SANITIZE SOME OF THE ROT WITHIN THE PENSION SYSTEM WE INHERITED. I WANT TO ASSURE ALL NIGERIANS THAT THIS GOVERNMENT REMAINS COMMITTED TO RESOLVING ALL PENDING ISSUES ON PENSION PAYMENT.”
Meanwhile, the President has urged traders, Non-governmental organizations (NGO), and several stakeholders in the informal sector in the economy to cooperate with the government to educate their members of the various benefits they stand to enjoy in the MPP scheme.