Nigeria is struggling to get informal workers to save

BETWEEN A SLUMPING economy and gnawing inflation, Nigerians are finding life tough. Temilola Balogun, who owns a clothing shop in Lagos, the commercial capital, sighs that it is hard to save anything. This is typical: most adults in Africa’s most populous country do not pay into a pension. Few will be able to retire without being supported by their children.To change this, in 2019 the government started a “micro-pensions” scheme aimed primarily at informal workers, who make up 80% of the workforce. This is more flexible than old-school pension plans that have hefty fees, high minimum contributions and, in some cases, charge penalties for missed payments. Similar plans have worked in countries such as Kenya, which in 2011 launched its Mbao plan. It allows savers to contribute as little as 20 shillings ($0.19) a day. By 2018 it had 100,000 members. Nigeria hopes that 30% of working-age people will have pensions by 2024.