Micro Pension Scheme in Nigeria, Assessing Social Influence and Regulatory Framework as Drivers for its Adoption

Abstract

The Micro Pension Scheme (MPS) was introduced to extend retirement savings coverage to Nigeria’s large informal sector, yet enrolment remains
significantly low, particularly in semi-urban areas such as Zaria Metropolis. Drawing from insights in the attached proposal, this study examines how social influence and the regulatory framework drive the adoption of micro pensions among informal sector workers in Zaria. Social influence,
conceptualized as normative pressure from peers, family networks, and trade associations, is expected to play a crucial role in shaping attitudes and
willingness to enrol in MPS due to the communal and association-based nature of informal economic activities in the region. Likewise, the regulatory framework defined by the clarity of PenCom guidelines, enforcement mechanisms, transparency, and consumer protection provisions is anticipated to influence trust, perceived system integrity, and
confidence in long-term savings. Using a quantitative cross-sectional design, the study proposes a structural model in which social influence and regulatory provisions predict intention to adopt the micro pension scheme. The study aims to provide empirical evidence relevant for pension regulators and policymakers in strengthening regulatory communication and leveraging community-based networks to boost micro pension participation in Zaria Metropolis.