FCMB Pensions Eyes Informal Sector Growth as Assets Cross N1tn

FCMB Pensions has announced plans to deepen its engagement with Nigeria’s vast informal sector as its assets under management exceed the N1 trillion mark, reflecting sustained growth and rising confidence in the pension fund administrator’s operations. The development highlights both the expanding scale of the company’s portfolio and its renewed focus on extending pension coverage beyond the formal workforce.

The pension firm said crossing the N1 trillion asset threshold represents a significant milestone, achieved through consistent contributions, prudent investment strategies and growing participation by contributors across different sectors of the economy. It noted that the achievement comes at a time when Nigeria’s pension industry is increasingly seeking ways to expand coverage, particularly among informal workers who remain largely excluded from structured retirement savings.

According to FCMB Pensions, the informal sector represents a major opportunity for growth, given that it accounts for a substantial portion of Nigeria’s labour force. Millions of artisans, traders, transport workers, freelancers and small business owners currently operate outside the formal pension net, leaving them vulnerable to income insecurity in old age. The company said addressing this gap is both a business imperative and a social responsibility.

The Managing Director of FCMB Pensions stated that the company’s next phase of growth will prioritise tailored pension solutions designed to meet the unique needs of informal workers. He explained that irregular income patterns, limited financial literacy and mistrust of long-term savings schemes have historically discouraged informal workers from participating in pension programmes.

To address these challenges, FCMB Pensions said it is leveraging technology and simplified processes to make pension participation more accessible. Digital platforms are being enhanced to allow contributors to open and manage retirement savings accounts with ease, make flexible contributions and track their balances in real time. The firm said these innovations are aimed at removing barriers that often discourage informal sector participation.

The company also noted that it is working closely with regulators and industry stakeholders to promote the Micro Pension Plan, a scheme specifically designed to accommodate informal workers. Under the plan, contributors can save small amounts at flexible intervals, with a portion of the savings accessible for short-term needs while the rest is preserved for retirement.

FCMB Pensions said awareness remains a major challenge, adding that it has intensified sensitisation campaigns across markets, transport hubs and trade associations. By partnering with cooperatives, unions and community groups, the firm aims to build trust and educate potential contributors on the benefits of structured retirement savings.

The growth in assets under management, according to the company, reflects not only increased contributions but also disciplined investment decisions across asset classes such as government securities, equities and money market instruments. The firm said its investment approach is guided by a focus on capital preservation, steady returns and compliance with regulatory guidelines.

Industry analysts say crossing the N1 trillion asset mark places FCMB Pensions among the leading players in Nigeria’s pension industry and underscores the sector’s resilience despite economic headwinds such as inflation and currency volatility. They note that pension funds have remained a key source of long-term capital for the economy, supporting government financing and private sector investment.

The National Pension Commission has consistently encouraged pension fund administrators to expand coverage, particularly among informal workers, as part of efforts to improve retirement security and reduce old-age poverty. Analysts say initiatives by firms like FCMB Pensions align with this objective and could significantly increase pension penetration over time.

FCMB Pensions also highlighted its focus on customer service and transparency as key drivers of growth. The company said timely communication, prompt processing of benefits and clear reporting have helped strengthen trust among contributors and retirees. It added that maintaining this trust is essential as the firm expands into new segments.

Beyond asset growth, the firm said it remains committed to supporting contributors through financial education programmes that promote long-term planning and savings discipline. It noted that many Nigerians underestimate the importance of retirement planning, especially those in the informal sector who rely on daily income for survival.

The company expressed confidence that with the right mix of technology, education and partnerships, pension participation among informal workers can increase significantly. It said success in this area would not only drive business growth but also contribute to broader economic stability by reducing the future burden on families and the state.

As FCMB Pensions sets its sights on the informal sector, the firm said it will continue to innovate and adapt its offerings to changing market realities. With assets now exceeding N1 trillion, the company believes it is well-positioned to play a leading role in shaping the next phase of Nigeria’s pension industry, one that is more inclusive and reflective of the country’s diverse workforce.