Nigeria's drive to deepen pension inclusion is set to receive a major boost as fintech company Awabah unveils a new initiative designed to take retirement savings services beyond traditional banking channels and into local communities.
The startup says it is targeting one million new personal pension subscribers by the end of 2026 by leveraging the widespread network of Point of Sale (POS) agents to reach workers in Nigeria's vast informal economy.
The company's Chief Executive Officer and co-founder, Tunji Andrews, disclosed the ambitious target during the unveiling and demonstration of its Pension Direct initiative in Lagos on Thursday.
Developed in partnership with TeamApt and powered by the Moniepoint POS network, the solution enables traders, artisans, transport operators, gig workers and other informal-sector participants to register for pension plans and automate their retirement contributions without visiting banking halls or owning smartphones.
According to Andrews, the initiative is built around a simple objective—bringing pension services closer to millions of Nigerians through familiar neighbourhood financial touchpoints where they already carry out daily transactions.
Under the new model, prospective contributors can walk into any participating POS outlet, select their preferred Pension Fund Administrator (PFA), provide basic registration details and choose how frequently they want to save. Customers can then authorize a direct debit mandate using their bank cards, allowing contributions to be deducted automatically on a daily, weekly or monthly basis.
The approach is expected to address one of the biggest challenges facing informal-sector workers—maintaining regular retirement savings despite having irregular income streams.
Explaining the decision to adopt agency banking infrastructure, Andrews noted that millions of Nigerians, particularly in rural and underserved communities, already trust and rely on local POS operators for financial services, even when they do not have smartphones or access to mobile banking applications.
To accelerate adoption, he revealed that Awabah will embark on an extensive awareness campaign featuring roadshows, radio jingles, billboards and grassroots engagements. The first phase of the rollout will focus on Lagos, Edo, Abuja and states across the South-East.
He added that participating POS agents are also undergoing training to educate potential customers, assist with registration and provide continuous support throughout the onboarding process.
Speaking on behalf of TeamApt Limited, Implementation Manager Emmanuella Edeh said the collaboration is designed to bridge the gap between formal financial services and millions of Nigerians who remain outside the traditional banking ecosystem.
"Many people at the grassroots are not tech-savvy and do not own smartphones, making POS terminals a practical offline interface for digital pension services," Edeh said.
She further explained that deployment would begin with selected POS agents before expanding across the wider network, noting that the registration process automatically adjusts its requirements based on each customer's selected Pension Fund Administrator.
Also speaking at the event, the Managing Director and Chief Executive Officer of the Shared Agent Network Expansion Facility (SANEF), Uche Uzoebo, described the initiative as one with the potential to significantly improve pension penetration across the country.
Uzoebo urged other agency banking operators and financial service providers to embrace similar distribution models in order to extend pension access and other financial products to underserved communities nationwide.
Despite the optimism surrounding the initiative, stakeholders acknowledged that several obstacles could affect nationwide expansion. Among the concerns raised were poor internet connectivity in remote locations, settlement delays, limited customer awareness and the continued dependence on cash transactions in many communities.
Responding to the concerns, Andrews said Awabah is already exploring offline-capable technology solutions to ensure uninterrupted service delivery. He also disclosed that participating POS terminals would be mapped using geolocation technology, making it easier for customers to locate the nearest pension service point.
Looking beyond pensions, Andrews said the company plans to use the same agent distribution network to expand access to other financial products, including micro-insurance, savings bonds and capital market investment opportunities, further strengthening financial inclusion for millions of Nigerians.