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Obasanjo Advocates Need To Capture The Informal Sector In Pension Scheme #WPSAFRICA2016



A former President of Nigeria, Mr Olusegun Obasanjo, has asked African leaders to establish an effective structure that would capture self-employed persons in the pension scheme, ensure effective regulation and supervision pension and security system.

He said the system would provide support and deliver benefits in a secure, coordinated and pragmatic manner to pensioners.

Mr Obasanjo made the demand on Monday while addressing participants at the Pension Summit holding in Abuja, Nigeria’s capital.

He listed some challenges facing pension schemes across Africa to include untimely release of allocations to pay pensions, weak, inefficient, less transparent and cumbersome structures.

“Poor coverage and non-inclusion of the private sector, the self-employed and informal segment which is 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.

“These 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,” he told the gathering.

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