MICRO PENSION PLAN AND FINANCIAL INCLUSION IN NIGERIA: A STUDY OF THE INFORMAL SECTOR IN NORTH CENTRAL STATES

This study investigates the relationship between the micro-pension plan and financial inclusion in the informal sector of Nigeria, focusing on North Central States. A survey research design was employed, using a structured questionnaire to gather data from a population of 5,188,310 informal sector workers across six states: Plateau, Nasarawa, Kogi, Kwara, Niger, Benue, and the Federal Capital Territory (FCT). Using Cochran's formula (1963), a sample size of 384 was determined, and 377 valid responses were retrieved, representing a response rate of 98.17%. Data were analyzed using linear multiple regression in SPSS version 26. The findings reveal that timeliness of contributions and awareness of the micro-pension plan significantly enhance financial inclusion. Timeliness of contributions demonstrated a positive relationship with financial inclusion (unstandardized coefficient = 0.247, p = 0.001; Beta = 0.241). Awareness also positively influenced financial inclusion (unstandardized coefficient = 0.297, p = 0.000; Beta = 0.294). In conclusion, the micro-pension plan has a significant positive effect on financial inclusion in Nigeria’s informal sector. The study recommended that Policymakers should implement mechanisms to encourage timely contributions and launch targeted awareness campaigns leveraging local languages and culturally relevant channels to maximize outreach. These strategies will enhance financial participation and inclusion among informal sector workers.

1 01 Dec, 2024

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