TRUST, FINANCIAL LITERACY AND INTENTION TO ADOPT MICRO PENSION IN NIGERIA: A STUDY OF SELECTED INFORMAL TRADERS IN ZARIA METROPOLIS

The informal sector constitutes a significant portion of Nigeria's workforce, yet its participants remain largely excluded from formal pension systems. To address this gap, the Micro Pension Plan (MPP) was introduced under the Pension Reform Act of 2014, targeting informal workers. Despite its potential, uptake of the scheme remains alarmingly low. This study investigates the influence of financial literacy and trust in financial institutions on the adoption of micro pension schemes among informal traders in Zaria Metropolis. Using a quantitative survey design, data were collected from 391 respondents and analyzed through Partial Least Squares Structural Equation Modeling (PLS-SEM). Findings reveal that both financial literacy (β = 0.240, p < 0.001) and trust (β = 0.611, p < 0.001) exert significant positive effects on micro pension uptake, with trust demonstrating a stronger impact. The model explains 25.6% of the variance in uptake, confirming predictive relevance (Q² = 0.249). These results underscore the critical role of trust-building measures and targeted financial education in enhancing pension participation among informal workers. The study recommends simplified pension products, transparent communication, and community-based trust initiatives to improve coverage and financial security in retirement.