E-Financial
PenCom, PFAs Identify Challenges to Micro Pension Implementation in Nigeria
Pension Fund Administrators (PFAs) and the National Pension Commission (PenCom) have highlighted the challenges they have faced in their efforts to smoothly push the federal government’s Micro Pension plan initiative to the targeted market.
However, they said in the mist of the challenges, increased public awareness and review of the guidelines among others is the way to go.
Speaking at the recent Micro Pension Open Day organised by the umbrella body of pension fund administrators, the Pension Fund Operators Association of Nigeria (PenOp) in Lagos, they said the challenges were of two folds from the informal sector workers and PFAs.
From the informal sector workers they highlighted the challenges as lack of awareness, mistrust about the pension system, absence of appropriate incentives such as collateral for Micro finance and lack of financial literacy.
From the PFAs, they pointed out the challenges as short term perspectives base of the Micro pension plan and perceived associated costs, inadequate awareness campaigns, slow adoption of shared services arrangements by pension fund operators, poor service delivery, weak economic indices occasioned by inflation as well as increased poverty levels.
The Head, Micro Pensions Department National Pension Commission, Dauda Ahmed, who highlighted the challenges, said they have impacted negatively on the implementation efforts of both the pension fund administrators and PenCom.
He listed efforts made so far to push the Micro pension scheme to the targeted market as collaborations and stakeholders’ engagements through engineering leaderships of associations, unions cooperatives, civil society organisation and the media.
He also said the commission made further effort in renewing awareness campaign drive by in print, electronic and social media platforms among other efforts.
He said with these efforts, a total of 97,591 contributors have so far registered into the Micro pension scheme as at May 31, 2023 while a total of N435,607,515,14 has been contributed.
He said out of this, contingent withdrawals stood at N30,243,070.69 by 150 Micro pension contributors while a total of 587 contributors have converted from Micro pension to formal Contributory Pension Scheme.
On the way forward to achieve the set objectives of the Micro pension scheme Ahmed said there was need for increased enlightenment and public awareness campaign by the regulator and PFAs, review of the MPP Guidelines, further drive of the development of incentives, development of industry shared services platform, enhanced service delivery among others.
Presenting a paper titled, “Current Financial Inclusion Landscape,” Research Associate at EFlnA, Chioma Nwaiwu said Nigeria had plan to have 95 per cent of its population financially included in 2024.
She noted that there had been improvement in number of people using formal financial services adding that it had increased from 48.4 million to 50.5 percent of adults or 53.6 million adults.
She also noted that nearly one in two Nigerian adults do not use any formal or regulated financial services while more than one in three Nigerian adults remained completely financially excluded.
She said 65 percent of Nigerian adults are financially included.
“While overall financial inclusion continues to grow incrementally, progress has been too slow to meet national financial inclusion strategy targets” she noted.
She also observed that there was need for increased uptake and usage of pensions to achieve the Sustainable Development Goals’ targets, which were poverty reduction, good health and well-being, decent work and economic growth and reduced inequalities.
According to her, pension reduces the risk of poverty among retirees, out of job persons as well as informally employed persons and provides financial resources for healthcare during retirement
She also said pension incentivise savings and support economic stability, observing that Pension reduces inequality by extending social protection benefits to marginalised and underserved population.
She noted that there was a critical mass to scale up Micro pension in the informal sector of Nigerian economy pointing out that 49.8 million Nigerians were in the informal sector.
She noted that most informal sector workers plan to rely on their savings, children or businesses in retirement.
Musty Mustapha, co-founder of Kuda, delivered a compelling keynote address titled ‘Start Small, Build Bold’ at the inaugural NACOSS TechFest on May 13, 2025, held at the University of Ilorin Auditorium.
Organised by the Nigeria Association of Computer Science Students (NACOSS), the event, themed ‘Tech for Good: Creating Solutions for a Better World,’ brought together students, industry leaders, and tech enthusiasts to explore how technology can create meaningful solutions for society.
In his address, Mustapha emphasised the transformative power of technology when grounded in empathy and purpose. Reflecting on Kuda’s journey, he highlighted how addressing real-world challenges like financial exclusion can lead to impactful innovations that resonate with everyday Nigerians.
“Technology isn’t just about what we build; it’s about who we build for,” Mustapha asserted, urging young people in tech to prioritise building solutions that bridge societal gaps instead of chasing fleeting trends. He stressed that genuine innovation stems from understanding and addressing the struggles of individuals, from students burdened by transaction fees to small business owners awaiting timely payments.
Reflecting on Kuda’s origins, he explained how the fintech’s founders identified a critical problem — the exclusion of millions of Africans from modern financial services — and decided to build a solution that was accessible, affordable, and suited to real-world needs. “Real innovation is based on empathy,” he emphasised. “Understanding real struggles is critical to making the world better.”
Mustapha encouraged the audience to keep empathy at the core of their work. “Whether you’re coding your first app, designing a product, or starting a company, ask yourself: Who does this help? What problem does it solve? How does it make someone’s life better?”
Mustapha’s call to action aligns with the broader potential of technology to drive economic change. According to a recent report by research agency, Public First, Artificial Intelligence, for example, is expected to contribute an estimated $15 billion to Nigeria’s GDP by 2030, reflecting a projected annual growth rate of 27.08 per cent from 2025 to 2030.
As Mustapha aptly concluded, “You don’t need permission to create something meaningful. All you need is a clear problem, a bold vision, and the courage to take the first step.”
Fidelity Bank Plc, has reentered the trillion-naira market capitalisation club, after its share price rose by 5.3%, climbing from ₦19.95 to ₦21.00 on May 13, 2025, according to data from the Nigerian Exchange Limited (NGX).
This latest development also brings the total number of Nigerian companies with a trillion-naira market capitalisation to 19.
According to a report published on Techcabal website, the bank had previously dropped below the threshold on May 12, marking another fluctuation in its valuation.
Earlier in the year, Fidelity Bank Plc first reached the trillion-naira milestone on April 4, 2025, joining tier-1 banks such as Zenith Bank, Guaranty Trust Holding Company (GTCO), Access Holdings, First HoldCo, and United Bank for Africa (UBA). However, it fell below the mark on April 7 before reclaiming its position on April 23.
With 50.2 billion outstanding shares, the valuation reflects renewed investor confidence and signals Fidelity’s potential transition to tier-1 status. Analysts believe the bank is well-positioned to meet the Central Bank’s ₦500 billion ($311.9 million) minimum capital requirement through equity.
“The strong Q1 results suggest continued upward momentum in its stock,” said Nabila Mohammed, an analyst at Chapel Hill Denham. “This could boost investor confidence and help sustain its valuation.”
The stock has surged 141% in the past year, up from ₦8.70 in May 2024. Meksley Nwagboh, Head of Brand and Communications, attributed the rally to a 189% rise in 2024 after-tax profit—the highest among Nigeria’s top 10 banks.
That momentum carried into 2025, with Q1 after-tax profit soaring 190% to ₦91 billion ($56.8 million), driven by higher interest income, forex gains, and cost efficiencies.
“Lower credit losses helped boost net interest income,” said Olamide, a Lagos-based banking analyst. “Combined with solid full-year results and dividend expectations, the bank’s fundamentals are attracting investors.”
A report from Proshare noted the NGX Banking Index gained 6.96% in Q1 2025, driven by recapitalisation efforts that injected ₦2.4 trillion into the sector. Fidelity was the NGX’s third most-traded stock between February and May.
According to Mohammed, Fidelity’s high net interest margin and low-cost deposit base enhance its appeal. On February 8, it completed the first phase of its capital raise with 237% oversubscription. CEO Nneka Onyeali-Ikpe confirmed plans to conclude the next phase before H2 2025.
The bank’s Vision 2025 agenda includes expanding internationally—starting with its 2023 acquisition of Union Bank UK—and securing tier-1 status.
Afrinvest projects continued growth, with gross earnings and pre-tax profit forecasted to rise 46% and 49.4% respectively in 2025, reaching ₦1.5 trillion and ₦415.4 billion. The firm maintains a 12-month target price of ₦21.60 for the stock.
With robust earnings, a solid recapitalisation strategy, and growing investor interest, Fidelity is positioning itself as a strong contender in Nigeria’s top banking tier.
FirstBank of Nigeria has announced an upward review of its transaction alert fee, raising the charge from N4 to N6 per SMS.
In a customer notice, the bank attributed the increase to the recent hike in telecom service costs by network providers.
“We understand that staying connected and informed about financial activity on your FirstBank account is crucial,” the bank stated. “Unfortunately, due to the recent increase in telecom service charges by service providers, the fee for our SMS transaction alerts has been adjusted from N4 to N6 per message.”
The bank acknowledged that the change may cause some inconvenience to customers but assured that efforts are being made to minimise the impact while maintaining service quality.
“We know that this change might cause you some inconvenience, but we are committed to minimising the impact of this change while we continue to provide you with the best financial services possible,” the message read.
The bank encouraged customers with concerns or questions about the adjustment to reach out through its official contact channels.
The adjustment comes at a time when banks are reviewing cost structures following increased operating expenses, including rising telecom tariffs and inflationary pressures across sectors.
The new SMS fee will apply per transaction alert received by customers.
However, some customers took to X (formerly Twitter) to criticise the move, especially at a time when other banks are reportedly scrapping similar charges.
An X user, @Tonyvyncent, wrote, “FirstBankngr have mercy. In a period when others like Sterling Bank are removing charges for customers, you’re increasing charges. No emotional intelligence.”
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