Micro Pension Scheme Will Enhance Financial Inclusion
THE micro pension scheme is expected to kick off next year, how will this impact the economy? The micro pension scheme will expand coverage of the Contributory Pension Scheme, CPS, to include self employed individuals such as artisans as well as employees of organizations with less than three people on their payroll. This will form a major part of the government’s financial inclusion objectives.
Apart from the inherent pension benefits, the target population is estimated above 60 percent of the entire Nigerian populace. Harnessing them into the culture of long term savings and pension benefits will have multiple benefits and increase living standards overtime because of related economies of scale
From the common man’s viewpoint, not much can be said on present pension’s impact in re positioning the Nigerian economy. It has, however, created an enabling environment for a whole lot to happen in the business world from its core objective of social security for the elderly,provision of long term funds for investment in the private sector to availability of funds to government for critical infrastructure development. The potentials are even larger to diversify our economy fully.
The success of the funds will be used for self funding projects like the railways and the Nigerian airline project.
These two will have a direct impact on every Nigerian if they run efficiently. Road maintenance costs and travel comfort will be greatly improved.
The fortunes and employments these two create for Dubai and Turkey is massive. These alone, with ancillary services will create thirty to fifty thousand jobs. Infrastructure like these will also stimulate economic adventure and growth. Foreign investments will be stimulated as people see a business friendly environment. There can be no measuring of all possibilities.