Growing Old Without a Pension in Nigeria: What Informal Workers Must Start Doing Today

 

If you walk through any market in Nigeria early in the morning, you will notice something that most people no longer question.

You will see elderly men selling spare parts.
You will see women in their 60s still hawking food items.
You will see old farmers heading to their farms with slow but determined steps.

You will see aged men behind the wheels of many buses. Even elderly men serving as ‘conductors’ are regular sights on the streets of Lagos.

Most of them are not there because they love stress.
They are there because they have no pension waiting for them at home.

In Nigeria, millions of people work hard all their lives outside the formal system. They trade, farm, transport humans and goods, repair machines, fix vehicles as mechanics, sell food, run small shops, or offer services on their own terms. They earn daily, weekly, or seasonal income. They pay rent. They raise children. They survive.

But one big question quietly hangs in the background:

What happens when strength reduces and work becomes difficult?

For formal workers, the answer is clearer. There is a pension, however small or imperfect. But for informal workers, retirement is not a defined stage of life. It is often a slow slide into uncertainty.

This article is not written to scare you.
It is written to be honest.

And more importantly, it is written to answer one practical question:

If you are an informal worker in Nigeria, what must you start doing today to avoid suffering in old age?

 

Understanding the Problem First

Let us start from the basics.

In Nigeria, the pension system is built mainly around formal employment. If you work for a government agency or a registered private company, pension contributions are compulsory. A percentage of your salary is deducted every month, and your employer adds their own part.

But informal workers are different.

You:

• are self-employed
• earn irregular income
• may not have a fixed employer
• may not have a payslip

Because of this, most informal workers do not contribute to any pension scheme.

This is not always because they do not want to. Sometimes:

• they are not aware
• they do not trust the system
• their income barely covers daily needs
• they assume children will take care of them later

All of these reasons are understandable.

But the reality is changing fast.

 

The Old Ways of Surviving Old Age Are No Longer Reliable

For a long time, Nigerians relied on systems that were never written down but were widely trusted.

1. Children Will Take Care of Me

This has been the strongest retirement plan in Nigeria for decades.

Parents trained children.
Children grew up.
Children supported parents in old age.

But today:

• youth unemployment is high
• salaries are low
• many young people struggle to survive themselves
• migration separates families

Many children want to help their parents but simply cannot do enough.

Depending entirely on children is no longer a solid plan. It is now a risk.

 

2. I Will Keep Working Until I Die

This is the unspoken retirement plan of many informal workers.

And yes, many people do continue working into old age. But this plan ignores two things:

• health shocks
• physical decline

Illness does not give notice.
An accident can end income overnight.

Working forever is not a strategy. It is a hope.

 

3. I Have Land or a House

Owning a house is helpful. It removes rent pressure.
But it does not automatically put food on the table.

Land and property are:

• often illiquid
• difficult to sell quickly
• sometimes tied up in family disputes

Assets help, but assets alone are not income.

 

The Hard Truth: Nigeria Has No Strong Safety Net for Old Age

This is the part many people avoid saying openly.

Nigeria does not have:

• a universal pension for the elderly
• a reliable old-age income guarantee
• widespread social pensions

There are social programmes, but they:

• cover very few people
• are not regular
• are not designed as retirement income

So for informal workers, old age survival depends largely on personal preparation.

This is not fair. But it is real.

 

So What Must Informal Workers Start Doing Today?

Let us move away from problems and focus on action.

 

1. Accept This First: No One Is Coming to Save You Completely

This is not meant to be harsh.

It is meant to be liberating.

Once you accept that:

• the government may not provide enough
• children may not earn enough
• charity is uncertain

you can begin to take control.

Planning becomes possible only when illusions are removed.

 

2. Understand That Retirement Is Not an Age — It Is a Condition

Many informal workers think retirement means:

“When I reach 60 or 65.”

But for informal work, retirement usually means:

“When my body can no longer do what it used to do.”

This could happen at:

• 55
• 60
• or earlier, due to health

That is why planning must start before weakness starts.

 

3. Join the Micro Pension Plan (Even If You Don’t Trust It Fully)

Nigeria introduced the Micro Pension Plan (MPP) specifically for informal workers.

It allows:

• flexible contributions
• small amounts
• irregular payments

You can contribute when business is good and skip when it is bad.

Is it perfect? No.
Is it better than nothing? Yes.

Think of it as:

One leg of a stool, not the whole chair.

Do not put all your hope in it, but do not ignore it either.

 

4. Stop Thinking of Savings Only as “Money in the Bank”

Many informal workers save in ways they do not recognize as retirement planning.

Examples:

• buying land gradually
• building a house in stages
• investing in small income-generating tools

This is good. But it must be intentional.

Ask yourself:

• Will this asset still help me when I am weak?
• Can it generate income without daily stress?

If the answer is no, adjust your plan.

 

5. Build at Least One Source of Passive or Low-Stress Income

This is very important.

Old age income should not require:

• heavy lifting
• long hours
• constant physical presence

Examples may include:

• a small rental room
• a shop run by someone else
• farm arrangements with younger people
• simple investments that pay periodically

The goal is not to be rich.
The goal is consistency.

 

6. Health Is More Important Than Money in Old Age

Many retirement plans fail because of one thing: health expenses.

You can survive with low income.
You cannot survive with untreated illness.

Informal workers must:

• prioritize basic health insurance where possible
• save specifically for health emergencies
• avoid habits that destroy health early

Old age poverty is often medical poverty.

 

7. Do Not Rely on One Strategy Alone

This is where many people go wrong.

They choose one plan and put all hope there:

• children
• land
• business
• pension

Life does not respect single plans.

The safer approach is:

• small pension contribution
• small assets
• some savings
• social connections

None of these is strong alone.
Together, they form a buffer.

 

8. Reduce Future Expenses Before They Trap You

One silent retirement killer is high fixed expenses.

Things to watch:

• rent in old age
• debt
• lifestyle obligations

Owning a modest home early can do more for retirement security than many savings plans.

 

9. Teach Your Children Responsibility, Not Dependence

There is a difference between:

• raising responsible children
• raising retirement insurance

Teach children:

• values
• financial discipline
• independence

If they help you later, it will be from strength, not pressure.

 

10. Start Talking About Old Age — Silence Is Dangerous

Many informal workers avoid talking about old age because:

• it feels distant
• it feels uncomfortable

But silence does not delay reality.

Talk with:

• your spouse
• trusted family members
• cooperative groups

Planning improves when discussed.

 

What Happens If Nothing Is Done?

This is not to frighten you, but to be honest.

Without preparation, old age often looks like:

• dependence
• loss of dignity
• untreated illness
• reduced choices

Many elderly Nigerians are not poor because they were lazy.
They are poor because no system protected them, and no plan replaced it.

 

A Word to Policymakers (Even If They May Never Read This)

Nigeria must:

• expand micro pensions
• introduce basic social pensions
• support informal workers deliberately

But until that happens, individual action matters most.

 

Final Thoughts: The Most Important Step Is the First One

You do not need to:

• earn millions
• understand finance deeply
• make perfect plans

You only need to:

start consciously preparing for a time when work will be harder.

Old age is not a punishment.
But unprepared old age can feel like one.

For informal workers in Nigeria, the question is no longer:

“Will I retire?”

The real question is:

“How will I survive when I can no longer work the way I do today?”

The answer starts with what you do now, not later.