Participation and Retention Rates of the Micro Pension Schemes: An Analysis of their Effect on Financial Inclusion in the Informal Sector in North Central Nigeria

• Author(s): YUSUF, Isaac Arome ; Abu Amodu Ameh ; Dorcas Igonoh Omanyo Oluwade
• Paper ID: 1709562
• Page: 259-267
• Published Date: 08-07-2025
• Published In: Iconic Research And Engineering Journals
• Publisher: IRE Journals
• e-ISSN: 2456-8880
• Volume/Issue: Volume 9 Issue 1 July-2025

Abstract

This study examines the relationship between Participation and retention rates of the micro pension schemes: An analysis of their effect on financial inclusion in the informal sector in north central Nigeria. A survey research design was employed, using a structured questionnaire to gather data from a target population of 5,188,310 informal sector workers across six states—Plateau, Nasarawa, Kogi, Kwara, Niger, and Benue as well as the Federal Capital Territory (FCT). Using Cochran’s formula (1963), a sample size of 384 was determined, yielding 372 valid responses for analysis. The data were analyzed using multiple linear regression. The findings reveals that participation rate has a positive relationship with financial inclusion. Retention rate also has a positive and significant effect on financial inclusion In conclusion, the micro-pension scheme has a significant positive effect on financial inclusion in Nigeria’s informal sector. The study recommended that stakeholders should focus on initiatives that promote active participation in micro pension scheme. It also recommended that Policymakers and pension managers should introduce incentive-based retention models and offering periodic financial counseling to keep contributors engaged.

Keywords

Financial Inclusion, Micro-Pension Scheme, Participation Rate, Retention Rate

Citations

IRE Journals:
YUSUF, Isaac Arome , Abu Amodu Ameh , Dorcas Igonoh Omanyo Oluwade "Participation and Retention Rates of the Micro Pension Schemes: An Analysis of their Effect on Financial Inclusion in the Informal Sector in North Central Nigeria" Iconic Research And Engineering Journals Volume 9 Issue 1 2025 Page 259-267

IEEE:
YUSUF, Isaac Arome , Abu Amodu Ameh , Dorcas Igonoh Omanyo Oluwade "Participation and Retention Rates of the Micro Pension Schemes: An Analysis of their Effect on Financial Inclusion in the Informal Sector in North Central Nigeria" Iconic Research And Engineering Journals, 9(1)