Awabah, a Nigerian fintech startup focused on micro-pensions, has partnered with TeamApt, a leading financial services platform, to transform point-of-sale (POS) terminals into pension collection points. This initiative aims to bring retirement savings to Nigeria's vast informal sector, where over 80% of the workforce lacks access to formal pension schemes.
How the Partnership Works
Under the agreement, TeamApt's network of over 200,000 POS agents across Nigeria will be equipped to collect pension contributions from informal workers. Users can walk into any TeamApt agent location, deposit as little as ₦100, and have the funds credited to their Awabah pension account. The partnership leverages TeamApt's existing infrastructure to reduce the cost of pension administration and extend reach to previously unserved communities.
According to Awabah CEO, Femi Adefolaju, "This partnership is a game-changer for pension inclusion in Nigeria. By integrating with TeamApt's agent network, we are making it possible for anyone, no matter how small their income, to save for retirement conveniently and securely."
Impact on Informal Sector Workers
The informal sector accounts for about 65% of Nigeria's GDP but has a pension coverage rate of less than 10%. Many workers in this sector rely on daily or irregular income, making traditional pension plans inaccessible. The Awabah-TeamApt collaboration removes barriers by allowing small, frequent contributions and providing a digital record of savings.
TeamApt CEO, Tosin Eniolorunda, noted, "We are excited to partner with Awabah to bring pension services to the last mile. Our POS agents are trusted community members, and this service will empower millions of Nigerians to plan for their future."
Technology and Security
The solution uses biometric verification and real-time transaction processing to ensure security and accuracy. Contributions are automatically invested in low-risk government-backed securities, and users can track their savings via USSD or the Awabah app. The partnership also includes a savings withdrawal feature for emergencies, with a penalty to discourage early access.
Regulatory and Market Context
The National Pension Commission (PenCom) has been promoting micro-pension plans since 2018 to expand coverage. As of 2025, only about 9.8 million Nigerians were enrolled in the formal pension system, out of a working population of over 80 million. The Awabah-TeamApt partnership aligns with PenCom's goal to increase penetration through technology and agent networks.
Industry analysts estimate that the micro-pension market in Nigeria could grow to ₦10 trillion by 2030 if fintech innovations continue. This partnership is expected to significantly contribute to that growth by onboarding millions of informal sector workers.
Future Plans
Awabah plans to expand the service to other agent networks and integrate with mobile money platforms. The company also aims to introduce investment options tailored to different risk appetites, such as mutual funds and real estate investment trusts (REITs). TeamPapt will continue to enhance its agent platform to support additional financial services, including insurance and savings products.
