The National Pension Commission (PenCom) has called on small and medium-sized enterprises (SMEs) to strengthen their financial management, formalise operations and embrace retirement planning, stating that sustainable business growth must go hand in hand with long-term financial security for owners and employees.
Samuel Chigozie Uwandu, federal commissioner, Inspectorate, PenCom, made the call at the commission’s SME Fair in Lagos, organised as part of activities to mark Pension Week 2026, with the theme, “A Stronger Business, a More Secured Future”.
Uwandu said supporting the growth of SMEs was critical to expanding pension coverage, particularly among entrepreneurs, self-employed professionals and workers in the informal sector who remain important to Nigeria’s economic activity.
“Today, we are not merely discussing businesses. We are discussing livelihoods, families, jobs, innovation, economic resilience and the future of our dear country,” he said.
He noted that SMEs, ranging from market traders and artisans to farmers, technology entrepreneurs, service providers and small-scale manufacturers, provide livelihoods for millions of Nigerians, create jobs, develop skills and sustain economic activities across communities.
However, he said the ability of businesses to survive daily challenges should not be the ultimate measure of success, stressing the need for entrepreneurs to build enterprises capable of expanding, withstanding economic shocks and providing lasting financial security.
“The real objective must be to build an enterprise that can grow, withstand economic difficulties, create opportunities for others and provide lasting security for its owner,” Uwandu said.
He urged business owners to move beyond survival-driven operations by improving record-keeping, maintaining financial discipline, separating personal and business finances, managing income and expenditure responsibly, and reinvesting part of their profits to support expansion.
He also emphasised that business sustainability depends on responsible employment practices and compliance with statutory obligations, including the timely remittance of pension contributions where applicable.
“Employees are not simply a cost of doing business. They are partners in building the enterprise,” he said, adding that their financial security and dignity after years of service should form part of employers’ responsibilities.
Uwandu warned that delayed or unremitted pension contributions could undermine workers’ retirement security and weaken confidence in the pension system. He described compliance with pension obligations as more than a regulatory requirement, saying it reflects responsible business leadership and respect for employees.
The commissioner also challenged entrepreneurs to address a major gap in their financial planning: securing their own retirement.
He observed that many business owners devote their most productive years to building their enterprises, supporting families and creating employment but often fail to prepare for a time when age, ill health or changing circumstances may prevent them from continuing to work.
“There is often an assumption that as long as the business remains operational, the owner will continue to earn an income,” he said, urging entrepreneurs to consider how they would sustain themselves if their businesses experienced prolonged difficulties or they decided to retire.
“As your business grows, you should also begin to prepare for your financial future and retirement,” Uwandu said.
He advised business owners to develop consistent savings habits, plan for unexpected events and keep retirement savings separate from business working capital. He identified the Personal Pension Plan (PPP) under the Contributory Pension Scheme as an option for eligible self-employed Nigerians and informal-sector operators seeking to build retirement savings.
He encouraged entrepreneurs to seek guidance from licensed Pension Fund Administrators and PenCom on the pension arrangements available to them, noting that retirement planning should begin early enough to allow savings to accumulate over time.
Two panel discussions at the fair reinforced the need for practical measures to translate the message into action, urging business owners to register and formalise their enterprises, maintain accurate financial records, separate business and personal finances, invest in technology and capacity building, and develop succession and business continuity plans.
Entrepreneurs and self-employed professionals were advised to make retirement planning an immediate priority, take advantage of available pension products, including the Personal Pension Plan, and cultivate disciplined saving and investment habits.
For employers, the resolutions called for greater financial literacy among employees, compliance with pension obligations and recognition of employee welfare as an essential component of business sustainability.
Stakeholders and industry players were also urged to deepen pension awareness across the SME and informal sectors, simplify access to pension services and strengthen financial inclusion initiatives to enable more Nigerians to prepare for retirement.
The panel stressed that the success of the initiative should be measured not by attendance or discussions alone, but by the practical steps participants take after returning to their businesses and homes.
For PenCom, the challenge is to ensure that the drive for pension inclusion reaches entrepreneurs who operate outside conventional employment structures, while encouraging them to see retirement savings as part of responsible financial management rather than a commitment to be postponed until old age.
Modestus Anaesoronye is a leading Nigerian financial journalist with over two decades of experience reporting on the insurance and pension sectors across Nigeria and West Africa. He has held key editorial positions at major national media outlets, including The Comet, The Nation, and Financial Standard, and currently serves as a Senior Financial Analyst at BusinessDay Media Ltd. A widely travelled reporter, he has covered industry developments in more than 14 countries across Africa and Asia. Anaesoronye is a multiple award-winning journalist, honoured several times as Insurance Journalist of the Year and Pension Journalist of the Year by recognised industry bodies, including PensionScope and the Pension Fund Operators Association of Nigeria (PenOp), among others.
