Obasanjo calls for inclusion of informal sector in pension schemes across Africa

Former Nigerian President, Chief Olusegun Obasanjo, has called for inclusion of the informal sector in the pension schemes across African countries.

While speaking at the ongoing World Pension Summit (WPS) Africa Special in Abuja today, the ex-president said poor coverage and non-inclusion of the private sector, the self-employed and informal segment which are increasingly becoming an important pillar of African economies, are also issues which African countries are grappling with.

“Establishment of a viable pension structure for the informal sector is essential. It constitutes 61 per cent of the share of urban employment across the continent. It is expected to rise due to projected growth in population fuelled by decline in infant mortality. Urban population growth is projected to reach 60 per cent by 2050,” he stressed.

These, he pointed out, are sufficient incentives to push African governments and relevant authorities to meet the drive for extension of universal coverage of pension and social security benefits, particularly to self-employed and informal sector employees, a major priority.

While expressing satisfaction as regards the growth of the Pension Funds in Nigeria which is now N5.73 trillion, he called on pension fund operators to judiciously invest the money bridging housing or infrastructure deficits in the country.

Speaking earlier at the forum, the Director-General, National Pension Commission (PenCom), Mrs. Chinelo Anohu-Amazu, noted that the challenges in the economy influenced the choice of this year’s theme, believing the challenges would resonate with delegates and provide a platform for the exchange of ideas and experiences on innovative practices in pensions and social security to advance the African agenda of addressing economic and social challenges.