New Pension Rule Lets Nigerians Save From Their “Side Hustles”! — PenCom Expands Retirement Access With Personal Pension Plan
A major shift has just taken place in Nigeria’s pension landscape! The National Pension Commission (PenCom) has unveiled a new pension window that allows Nigerians — whether self-employed, freelancers, or those with side hustles — to save directly for retirement.
The initiative comes through the relaunch of the Micro Pension Plan (MPP) into an expanded scheme called the Personal Pension Plan (PPP), designed to democratize retirement planning and make pension savings more accessible to everyone, no matter their occupation or income source.
What’s New?
Under the new PPP framework, any Nigerian — whether in the formal or informal sector — can now contribute directly to their Retirement Savings Account (RSA) without going through an employer.
Previously, only employees could make voluntary pension contributions through their workplaces. Now, PenCom has removed that restriction, opening the door for self-employed artisans, freelancers, traders, and even civil servants with side businesses to build retirement savings independently.
According to PenCom’s Director-General, Omolola Oloworaran, this move will help capture over 70 million Nigerians in the informal sector who were previously excluded from pension coverage.
“Individuals can now contribute directly to their RSAs without going through an employer,” she said.
“We are democratising pension participation — so you can now decide to contribute for yourself.”
Key Benefits of the Personal Pension Plan (PPP)
1️⃣ Open to Everyone – Any Nigerian, regardless of their job or income source, can open a PPP account.
2️⃣ Direct Contributions – You decide when and how much to contribute — daily, weekly, monthly, or even after completing a big contract.
3️⃣ Flexible Access – You can withdraw up to 50% of your total contributions just three months after opening your account, while the remaining 50% is reserved for retirement.
4️⃣ Added Benefits – PPP contributors enjoy access to micro-insurance, basic health cover, personal accident protection, and even burial or life insurance through partnerships with licensed insurers and HMOs.
5️⃣ Financial Partnerships – Collaborations with financial institutions will give contributors access to microcredit and savings-linked services, boosting financial inclusion.
Why This Matters
This reform marks a turning point in Nigeria’s pension system, particularly for individuals with multiple income streams.
As Nike Bajomo, Executive Director at Stanbic IBTC Pension Managers, explained:
“Any Nigerian, regardless of job or income, has the right to open a PPP account now. The ability to access funds for urgent needs makes it especially attractive.”
Also, Olumide Oyetan, CEO of Stanbic IBTC Pension Managers, highlighted that the PPP and the new Foreign Currency Pension Contributions framework reflect Nigeria’s diverse and dynamic workforce.
“Many Nigerians now work independently or earn in foreign currency, and these reforms ensure everyone can participate in the pension system confidently,” he said.
What About Existing Contributors?
Those who were previously under the Contributory Pension Scheme (CPS) but are now self-employed can continue contributing under the new PPP structure.
Even employees can top up their statutory pension contributions under the PPP rules — giving them greater flexibility and control over their retirement funds.
The Bigger Picture
This move by PenCom signals a strong push toward inclusive financial planning and long-term social protection. With incentives like insurance cover and flexible withdrawals, the Personal Pension Plan offers Nigerians a practical way to secure their future while still managing immediate financial needs.
In essence, you can now save for tomorrow — even while building your “side hustle” today!
A major shift has just taken place in Nigeria’s pension landscape! The National Pension Commission (PenCom) has unveiled a new pension window that allows Nigerians — whether self-employed, freelancers, or those with side hustles — to save directly for retirement.
The initiative comes through the relaunch of the Micro Pension Plan (MPP) into an expanded scheme called the Personal Pension Plan (PPP), designed to democratize retirement planning and make pension savings more accessible to everyone, no matter their occupation or income source.
What’s New?
Under the new PPP framework, any Nigerian — whether in the formal or informal sector — can now contribute directly to their Retirement Savings Account (RSA) without going through an employer.
Previously, only employees could make voluntary pension contributions through their workplaces. Now, PenCom has removed that restriction, opening the door for self-employed artisans, freelancers, traders, and even civil servants with side businesses to build retirement savings independently.
According to PenCom’s Director-General, Omolola Oloworaran, this move will help capture over 70 million Nigerians in the informal sector who were previously excluded from pension coverage.
“Individuals can now contribute directly to their RSAs without going through an employer,” she said.
“We are democratising pension participation — so you can now decide to contribute for yourself.”
Key Benefits of the Personal Pension Plan (PPP)
1️⃣ Open to Everyone – Any Nigerian, regardless of their job or income source, can open a PPP account.
2️⃣ Direct Contributions – You decide when and how much to contribute — daily, weekly, monthly, or even after completing a big contract.
3️⃣ Flexible Access – You can withdraw up to 50% of your total contributions just three months after opening your account, while the remaining 50% is reserved for retirement.
4️⃣ Added Benefits – PPP contributors enjoy access to micro-insurance, basic health cover, personal accident protection, and even burial or life insurance through partnerships with licensed insurers and HMOs.
5️⃣ Financial Partnerships – Collaborations with financial institutions will give contributors access to microcredit and savings-linked services, boosting financial inclusion.
Why This Matters
This reform marks a turning point in Nigeria’s pension system, particularly for individuals with multiple income streams.
As Nike Bajomo, Executive Director at Stanbic IBTC Pension Managers, explained:
“Any Nigerian, regardless of job or income, has the right to open a PPP account now. The ability to access funds for urgent needs makes it especially attractive.”
Also, Olumide Oyetan, CEO of Stanbic IBTC Pension Managers, highlighted that the PPP and the new Foreign Currency Pension Contributions framework reflect Nigeria’s diverse and dynamic workforce.
“Many Nigerians now work independently or earn in foreign currency, and these reforms ensure everyone can participate in the pension system confidently,” he said.
What About Existing Contributors?
Those who were previously under the Contributory Pension Scheme (CPS) but are now self-employed can continue contributing under the new PPP structure.
Even employees can top up their statutory pension contributions under the PPP rules — giving them greater flexibility and control over their retirement funds.
The Bigger Picture
This move by PenCom signals a strong push toward inclusive financial planning and long-term social protection. With incentives like insurance cover and flexible withdrawals, the Personal Pension Plan offers Nigerians a practical way to secure their future while still managing immediate financial needs.
In essence, you can now save for tomorrow — even while building your “side hustle” today!