Awabah, a Nigerian fintech startup, in collaboration with Moniepoint’s TeamApt, has launched a new direct debit feature that enables Nigerians to automate pension contributions via Point-of-Sale (POS) terminals, aiming to expand retirement savings among underserved and informal-sector workers.
The product, demonstrated at a launch event, allows users to set up a recurring direct debit mandate using their bank card at participating POS terminals.
Customers can choose how much they want to contribute and how frequently the deductions should occur, with contributions automatically debited at the selected interval.
Tunji Andrews, Awabah’s chief executive officer, said the solution was designed to eliminate the friction associated with pension savings, particularly for Nigerians who are new to retirement planning.
“What this means is that once someone has set up a personal pension, they can walk to a POS terminal, create a direct debit mandate, and choose to contribute N500 weekly, N200 daily, or any amount that suits them. Once the mandate is created, the deductions happen automatically based on the schedule they selected,” Andrews said.
He noted that simplifying pension contributions is critical to increasing participation among informal workers, who make up the majority of Nigeria’s labour force but remain largely excluded from formal pension schemes.
“The least we can do is make saving for retirement easier. Pension savings is already a difficult conversation for many Nigerians, so our responsibility is to remove every possible barrier,” he added.
Why POS instead of mobile?
While explaining the decision to use POS agents as the primary distribution channel, Andrews said Nigeria’s extensive agency banking network offers broader reach than mobile-only solutions.
“I used to believe mobile money would work in Nigeria the way it did in Kenya, but I don’t think so anymore. POS terminals are everywhere, such as in cities, villages, and communities you wouldn’t expect. If we want to create pension access, we have to go where people already transact,” he said.
While Awaba also offers a mobile application, he said the company’s immediate focus is reaching customers through the channels they already use before encouraging digital self-service.
The company is currently focused on scaling within Nigeria before considering expansion into other African markets such as Ghana.
He noted that the partnership with Moniepoint was exclusive; the collaboration was driven by shared commitment to the initiative rather than exclusivity.
“The TeamApt team was as enthusiastic about this as we were, which made it possible to bring this to life. Now that people have seen what is possible, we are already having conversations with other partners,” he said.
Moniepoint to drive offline pension access
Emmanuella Edeh, implementation manager at TeamApt Inc., the fintech arm of Moniepoint, said the partnership aligns with Moniepoint’s broader mission of expanding financial inclusion by leveraging its nationwide agent network.
According to her, many Nigerians, particularly in rural communities, lack smartphones or digital literacy, making offline channels essential for pension adoption.
“We are using Moniepoint’s infrastructure to ensure grassroots Nigerians can access pension services through nearby agents. They don’t have to be tech-savvy because the technology is already embedded within the agent’s interface,” she said.
Edeh explained that the service will initially be piloted with selected agents before being rolled out more broadly across Moniepoint’s network, allowing agents to activate the pension service directly on their POS devices.
“Our goal is to create a secure, efficient and inclusive channel that gives more Nigerians access to pension services without requiring them to visit banks or navigate complex digital platforms,” she added.
SANEF calls for industry-wide adoption
Uche Uzoebo, managing director/CEO of Shared Agent Network Expansion Facilities (SANEF) Limited, while speaking on the sidelines, described the initiative as a significant step toward extending financial services to underserved communities.
She noted that the partnership between Awabah, Moniepoint and pension fund administrators demonstrates how digital infrastructure and agency banking can bridge longstanding gaps in retirement savings.
“Instead of asking people to travel long distances to a bank, we are taking pension services directly to where they already access financial services through agent networks,” Uzoebo said.
She also urged other financial service providers and agent network operators to adopt similar models, noting that Nigeria’s agency banking ecosystem, with more than two million agents, provides a strong foundation for expanding pension coverage nationwide.
“I would like to see more financial institutions embrace this infrastructure so we can serve millions of Nigerians in underserved communities. At the end of the day, everyone should be financially and economically included,” she said.
The launch comes as Nigeria continues to seek new approaches to deepen pension penetration, particularly among informal sector workers, who account for a significant share of the country’s workforce but remain largely outside the formal retirement savings system.
By leveraging the country’s expanding agency banking network, Awabah and its partners hope to lower access barriers and encourage more Nigerians to build long-term financial security through regular pension contributions.
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