PenCom and NURTW plan pension coverage for 9 million transport workers

Nine million transport workers across Nigeria could soon have pension savings — something most of them have never had.

The National Pension Commission (PenCom) and the National Union of Road Transport Workers (NURTW) have started talks on a partnership that would enroll these workers into the Personal Pension Plan under Nigeria's Contributory Pension Scheme.

PenCom disclosed the initiative in a statement on Wednesday after the NURTW National President, Musiliu Akinsanya — popularly known as MC Oluomo — visited PenCom's Director-General, Omolola Oloworaran, at the commission's headquarters in Abuja.

The meeting focused on expanding pension coverage among transport workers in the informal sector. They also discussed financing models that could help workers buy modern mass-transit vehicles.

"The successful implementation could significantly expand the country's pension contributor base, enhance retirement security for millions of transport workers and create a sustainable framework for modernising public transportation nationwide," Oloworaran said.

Akinsanya said the union's nationwide reach and large membership base offered a major opportunity to bring workers who had stayed outside the formal pension system into the net.

He outlined a three-part partnership framework: mass enrolment of transport workers into the Personal Pension Plan, an automated daily pension contribution system tied to existing transport revenue collection platforms, and a National Transport Workers Mobility Enhancement Programme.

The programme is designed to help transport operators access modern vehicles through structured financing arrangements.

"A key component of the proposal is the establishment of a sustainable financing framework that would enable transport operators to acquire buses and other transport infrastructure through support from development finance institutions, commercial banks and other stakeholders," the statement said.

Under the proposed setup, daily collections from transport operators would pass through existing union structures. Part of the money would go toward vehicle loan repayments, and the rest would fund individual Personal Pension Plan accounts.

Akinsanya said this model would improve repayment efficiency, reduce financing risks, and encourage long-term savings among workers who have traditionally been outside the formal pension system.

Oloworaran welcomed the proposal and described it as "a bold intervention that could significantly advance pension inclusion in the informal sector and contribute to broader economic development goals."

She said broadening pension coverage is one of PenCom's key priorities. The proposal also supports the Federal Government's Renewed Hope Agenda, particularly in social protection, poverty reduction, economic empowerment, financial inclusion, and transportation sector reform.

Both organisations expressed optimism that the partnership could become a flagship national programme that delivers far-reaching socio-economic benefits.

The Personal Pension Plan was introduced by PenCom to provide retirement savings for self-employed people and informal sector workers who aren't covered by the mandatory Contributory Pension Scheme.