FIWON says PoS agents won’t boost micro pension uptake

The Federation of Informal Workers of Nigeria (FIWON) says appointing Point-of-Sale (PoS) agents to mobilise micro pension contributions will not significantly expand coverage among informal sector workers.

FIWON General Secretary, Mr Gbenga Komolafe, stated this in an interview with newsmen on Sunday in Lagos.

The National Pension Commission says informal workers can now save for retirement through Point-of-Sale terminals operated by fintech firms.

Komolafe said the initiative failed to address low awareness, weak incentives and inflation-eroded savings affecting traders, artisans and other self-employed workers.

“While PoS agents may improve collection channels, the move does not scratch the surface of real barriers preventing sustained contributions,” he said.

He noted Nigeria’s inflation averaged about 25 per cent over five years, eroding the real value of long-term pension savings.

“Many informal workers see their savings lose value over time. Without inflation protection, it is difficult to convince them to lock away funds,” he said.

Komolafe reiterated that contributions under the Micro Pension Plan should be matched by government to protect savings and encourage enrolment.

“If a trader saves N1,000 and government complements it, inflation’s impact becomes less severe and contributors are assured of real value,” he said.

He cited a FIWON survey supported by Women in Informal Employment: Globalising and Organising, the International Labour Organisation and the International Trade Union Confederation.

“The survey shows participation remains low, with many treating micro pensions as short-term savings for education or business expansion,” he said.

Komolafe said government matching contributions would be feasible, requiring an estimated average of only 0.7 per cent of the national budget.

“Even in the formal sector, participation is driven by employer contributions and payroll deductions. Similar incentives are needed for informal workers,” he said.

He also urged introduction of a social pension for elderly informal workers already beyond retirement age.

“We must not forget those too old to start saving. A basic social pension would provide dignity and security,” he said.

Komolafe commended the Abia government for plans to provide stipends and free healthcare for senior citizens.

He described the move as “a step in the right direction towards expanding social protection coverage”.

He added that broader government support, public education and targeted incentives were essential to improve pension inclusion among informal workers.