About 91.4% of Retirement Savings Accounts (RSAs) registered under Nigeria’s Personal Pension Plan (PPP) had no contributions at the end of the first quarter of 2026.

Data from the National Pension Commission (PenCom) showed that 219,316 PPP RSAs had been registered by the end of March. Only 18,811 accounts, or 8.58%, had received contributions.

This left 200,505 registered accounts without funding.

PPP Contributions Reach N147.16 Million

Despite the large number of unfunded accounts, contributions under the scheme continued during the quarter.

PPP contributors paid N147.16 million into their accounts between January and March 2026. This brought total contributions since the scheme began to N1.66 billion.

The figures point to a wide gap between registration and actual participation. Many Nigerians have opened personal pension accounts but have yet to make contributions.

The data came from PenCom’s first-quarter 2026 pension industry report.

Personal Pension Withdrawals

The report also recorded withdrawals from personal pension accounts during the quarter.

Fifteen Personal Pension Contributors (PPCs) withdrew a combined N11.12 million on a contingent basis. Four Pension Fund Administrators (PFAs) processed the withdrawals.

Since the scheme began, 346 PPCs have made contingent withdrawals. Their total withdrawals stood at N124.30 million.

The report also showed differences in market share among PFAs. AccessARM accounted for 33.64% of new PPP RSA registrations during the first quarter.

Its cumulative share stood at 52.4% of all PPP RSAs.

PenCom Reviews Pension Contribution Rates

The PPP figures come as PenCom continues work on reforms to Nigeria’s pension system.

In July, the commission disclosed plans to review statutory pension contribution rates as part of its review of the Pension Reform Act (PRA) 2014.

Under the existing framework, employers contribute at least 10% of an employee’s monthly emoluments. Employees contribute 8%.

Together, the mandatory contributions amount to 18%.

PenCom has indicated that the rate could increase under the proposed reforms. The commission is also working on a new investment vehicle that could direct some pension assets into critical infrastructure projects.

Pension Assets Continue to Grow

The low funding rate among PPP accounts contrasts with the continued growth of Nigeria’s wider pension industry.

PenCom’s unaudited industry report showed that total pension assets reached N31.32 trillion in May 2026.

That figure represented a 1.23% increase from N30.94 trillion in April. Pension assets rose by about N384.98 billion during the month.

The industry also recorded strong annual growth. Total pension assets increased by 29.5% from N24.18 trillion in May 2025.

The growth has increased the importance of pension savings within Nigeria’s financial system. It also gives pension fund managers a larger pool of capital to invest in approved assets.

Personal Pension Coverage Remains a Challenge

The latest PPP figures show that account registration alone does not guarantee retirement savings.

While more Nigerians continue to register pension accounts, the number of accounts receiving contributions remains relatively small. This creates a challenge for efforts to expand retirement protection among people outside the formal employment system.

The issue also matters for Nigeria’s long-term financial security. Regular pension contributions can help individuals build retirement savings while increasing the pool of domestic capital available for investment.

PenCom’s ongoing reforms will therefore face the dual challenge of increasing participation and ensuring that registered accounts become active savings vehicles.

The first-quarter data shows that Nigeria’s pension industry is growing in size, but the large number of unfunded personal pension accounts highlights the need to turn registration into consistent contributions. Closing that gap will be important for expanding retirement coverage and strengthening long-term savings in the country.

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The National Pension Commission (PenCom) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) have recovered more than N3 billion in unremitted pension contributions from defaulting employers as part of efforts to enforce compliance with the Pension Reform Act 2014. The recovered funds have been fully remitted into the Retirement Savings Accounts of affected employees.

According to PenCom, the recoveries were achieved through a joint enforcement initiative with the ICPC aimed at addressing pension contribution defaults and safeguarding workers’ retirement savings. The recovered funds were obtained from employers in the electricity sector that failed to fulfil their statutory pension obligations.

PenCom noted that the partnership with the anti-corruption agency has strengthened enforcement efforts and demonstrated the effectiveness of inter-agency collaboration in ensuring compliance with pension laws. The commission disclosed that the ICPC is currently investigating several private-sector employers referred by PenCom for alleged non-compliance with the Pension Reform Act.

The commission reiterated that employers are required by law to deduct and remit pension contributions into employees’ Retirement Savings Accounts within seven working days after salaries are paid. Failure to comply attracts sanctions, including the recovery of outstanding contributions, penalties, and possible prosecution.

PenCom urged employers, particularly those in the private sector, to regularise outstanding pension remittances and fully comply with pension regulations to avoid enforcement actions. The commission reaffirmed its commitment to protecting workers’ retirement savings and promoting compliance with the Contributory Pension Scheme across Nigeria.

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The implementation of pension reforms across Nigerian states suffered a significant setback in the fourth quarter of 2025 as political calculations ahead of the 2027 general elections increasingly overshadow governance priorities.

Latest data from the National Pension Commission (PenCom) shows that efforts to expand the Contributory Pension Scheme (CPS) at the subnational level recorded no measurable progress during the quarter, despite ongoing engagement with state governments.

The development highlights a widening gap between pension reform commitments and actual implementation, as many states redirect attention toward political realignments, succession battles, and election preparations.

Only 8 States Fully Compliant With CPS

According to PenCom’s Q4 2025 industry report, only eight of Nigeria’s 36 states and the Federal Capital Territory are fully compliant with the Contributory Pension Scheme framework established under the Pension Reform Act.

This figure remained unchanged throughout the quarter, indicating a complete halt in momentum for expanding pension coverage across the country.

Industry observers say this stagnation comes at a critical time, as Nigeria’s pension assets have surpassed N30 trillion, making the sector one of the country’s most important sources of long-term domestic capital.

PenCom Raises Concern Over Implementation Gap

PenCom Director-General, Omolola Oloworaran, told state heads of service that workers’ retirement security is at risk not because of a lack of laws, but due to weak implementation.

She described pension reform as a legal and constitutional obligation, citing Section 210 of the 1999 Constitution.

“The challenge is no longer the enactment of laws. The challenge is the discipline of execution, regular remittance of contributions, funding of accrued rights, and establishment of functional institutions,” she said.

17 States Stuck in “Legislation Without Action”

The report shows that 17 states have enacted pension reform laws but have failed to fully implement the CPS.

This means that while legal frameworks exist, many public sector workers in these states remain outside the protection of a fully functional contributory pension system.

PenCom described these states as key priorities for future compliance efforts.

“The law exists. What is missing is operational follow-through,” the commission noted.

Politics Slowing Reform Momentum

Observers warn that increasing political activity ahead of the 2027 elections is slowing reform momentum across states.

Governors are increasingly focused on succession planning, coalition building, and party negotiations—activities that are now dominating state policy agendas.

Pension experts argue that this shift reflects a broader tension between short-term political interests and long-term governance obligations.

The Contributory Pension Scheme requires steady employer contributions, transparent remittance systems, and settlement of accrued liabilities—steps that demand fiscal discipline often avoided for political reasons.

Workers Still Exposed to Pension Uncertainty

The delay in implementation has left many state workers vulnerable, especially in states still operating under the outdated Defined Benefits Scheme.

Takor, a lawyer and executive director of the Centre for Pension Right Advocacy, called for stronger action from civil society and labour unions, including the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC).

He urged them to mobilise workers in defence of pension rights and resist practices that undermine retirement security.

States With Progress and Exceptions

Despite widespread stagnation, a few states have made notable progress.

Kaduna State has reportedly settled about N11 billion in outstanding pension obligations, with plans to clear the remaining N14 billion within two years, according to Governor Uba Sani.

Edo State also hosted a State Consultative Forum aimed at strengthening pension administration and improving compliance.

However, overall national progress remains limited.

Kano Faces Regulatory Challenges

PenCom raised concerns about Kano State, which, despite progress in legislation, still operates outside the regulatory framework.

Pension funds in the state are reportedly held in commercial banks rather than being managed by licensed Pension Fund Administrators (PFAs), contrary to regulatory requirements.

The commission says Kano will require targeted intervention to fully integrate into the national pension system.

Jigawa Remains a Model

Jigawa State remains one of the few states fully aligned with pension reform objectives, operating a contributory defined benefits structure that meets CPS standards.

Outlook for 2026 and Beyond

PenCom is expected to convene a States Compliance Roundtable in early 2026 to accelerate CPS adoption and improve remittance systems.

However, stakeholders say success will depend on political will at the state level, especially as election activities intensify.

With pension funds increasingly used to finance infrastructure and capital market investments, broader CPS adoption could strengthen both retirement security and Nigeria’s long-term financial stability.

As 2027 approaches, the key question remains whether state governments will prioritise pension reform or continue to allow political considerations to delay long-term social protection reforms.

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The National Pension Commission (PenCom) has granted Pension Fund Administrators (PFAs) regulatory forbearance to invest in the planned $50 billion Initial Public Offering (IPO) of Dangote Petroleum Refinery & Petrochemicals FZE.

The approval provides a special dispensation allowing pension operators to participate in what is expected to become one of Africa’s largest public offerings.

According to PenCom, the decision followed a detailed review of requests seeking permission to invest pension fund assets in the proposed listing.

Dangote Refinery Targets Landmark $50 Billion Valuation

The Dangote Petroleum Refinery is preparing to float about 10 percent equity of its operations to the public in a deal expected to value the refinery at up to $50 billion.

The refinery, located in Lagos with a capacity of 650,000 barrels per day, is already regarded as one of Africa’s most significant industrial assets.

The IPO is also expected to include dollar-denominated dividends, making it attractive to institutional investors, including pension funds.

PenCom Cites Economic Importance and Strong Fundamentals

In its circular to PFAs, PenCom said the refinery’s strategic importance to Nigeria’s economy and its strong growth prospects influenced its decision.

The regulator also referenced the track record of Dangote Industries Limited as a key factor in granting the approval.

PenCom noted that the investment could generate broad economic benefits, particularly in energy security, industrial growth and capital market development.

Regulatory Waiver Comes With Strict Conditions

The circular, signed by A.M. Saleem, Director of the Surveillance Department, stated that PFAs may proceed under a special dispensation from Section 6.2.7.1 (iii) of the investment regulation framework.

This waiver temporarily removes certain restrictions, including profitability and dividend history requirements, but maintains all other regulatory safeguards.

However, PenCom stressed that PFAs must still comply with internal risk management rules and fiduciary responsibilities to pension contributors.

Waiver Described as Exceptional and Non-Precedent Setting

PenCom emphasized that the approval is strictly case-specific and applies only to the Dangote Refinery IPO.

“The regulatory forbearance granted under this Circular is exceptional, one-off, and strictly case-specific,” the commission stated.

It added that the decision should not be interpreted as a precedent for future IPOs or investment transactions.

The circular took immediate effect, with PFAs directed to seek clarification from the Surveillance Department where necessary.

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Nigeria’s pension industry recorded its strongest growth in over 20 years, with total assets rising to N29.43 trillion in February, a N1.39 trillion increase from January, according to the National Pension Commission (PenCom).

The surge, driven by equity gains and fresh contributions, eclipses the previous record of N1.18 trillion set in January 2024. Domestic equities now account for N5.41 trillion, highlighting growing local market exposure, while foreign holdings remain limited at N261.99 billion.

PenCom Director-General Omolola Oloworaran said pension funds now hold roughly N4 trillion in equities, about 3–4% of total market capitalization on the Nigerian Exchange. Despite this, government securities dominate portfolios, with FGN bonds and treasury bills totaling over N16.9 trillion, reflecting a preference for stable returns.

Non-sovereign debt, including corporate and state bonds, expanded to N2.62 trillion, while alternative assets such as infrastructure funds, private equity, and REITs remain modest. The largest contributor to asset growth was RSA Fund IV, with N12.67 trillion under management.

Participation in the Contributory Pension Scheme continues to rise, reaching 11.13 million members, mostly from the formal sector. PenCom is pushing to expand coverage through the Personal Pension Plan, with nationwide initiatives underway to boost participation.

The February data underscores a rapidly growing yet conservative pension sector, with future growth dependent on deeper capital markets, broader alternative investments, and supportive regulatory frameworks.

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Nigeria’s pension assets surged to N29.43 trillion in February 2026, recording the strongest monthly growth since the introduction of the Contributory Pension Scheme more than two decades ago.

Latest data released by the National Pension Commission (PenCom) shows that the figure represents a month-on-month increase of N1.39 trillion, up from N28.04 trillion recorded in January.

The sharp rise surpasses the previous record growth of N1.18 trillion posted in January 2024, underscoring renewed momentum in the country’s pension industry despite prevailing macroeconomic challenges.

Analysis of the data indicates that the expansion was driven by a combination of fresh contributions and valuation gains across key asset classes, reflecting both increased participation and improved market performance.

Investment in domestic equities rose significantly to N5.41 trillion, highlighting growing pension fund exposure to the Nigerian stock market as fund managers seek higher returns in a volatile economic environment.

In contrast, foreign equity investments remained relatively modest at N261.99 billion, suggesting a cautious stance by fund managers amid global economic uncertainties and exchange rate risks.

Further breakdown shows that investments in corporate debt securities climbed to N2.25 trillion, while allocations to state government bonds stood at N368.99 billion, reflecting a continued preference for relatively stable fixed-income instruments.

Liquidity within the system also remained strong, with money market instruments increasing to N2.74 trillion. Fixed deposits and bank acceptances accounted for N2.50 trillion of this figure, while commercial paper investments stood at N209.23 billion.

The data points to a gradual diversification of pension fund portfolios, balancing risk and return across multiple asset classes while maintaining adequate liquidity levels.

The latest figures build on a consistent growth trajectory observed in recent months. In January 2026, total pension assets stood at N28.04 trillion, representing a 2.11 percent increase from N27.46 trillion recorded in December 2025.

On a year-on-year basis, the industry recorded a 22.64 percent growth, rising from N22.86 trillion in January 2025, highlighting sustained expansion despite inflationary pressures and broader economic headwinds.

Industry analysts say the continued growth reflects the resilience of Nigeria’s pension system, driven by steady contributions, improved investment strategies and regulatory oversight. They note, however, that maintaining this momentum will depend on macroeconomic stability and the performance of both domestic and global financial markets.

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The Nigerian pension industry is taking a proactive step to address the country’s infrastructure deficit by establishing an investment consortium aimed at channeling pension assets into strategic national projects.

Ms. Omolola Oloworaran, Director General of the National Pension Commission (PenCom), announced the initiative at a Lagos press briefing following the inaugural Pension Industry Leadership Council (PILC) meeting.

PILC: Mobilising Pension Capital for National Projects

The PILC initiative intends to mobilize pension assets for infrastructure financing, creating structured investment vehicles that ensure risk mitigation and sustainable returns. Oloworaran stressed the economic benefits:

“It is critical to channel pension capital into infrastructure, create bankable investment pipelines, support national development, and preserve returns.”

The newly formed Investment and Financial Markets Committee will design frameworks that minimize exposure for pension funds while enabling large-scale infrastructure participation. Implementation will begin once these frameworks are finalized.

Pension Funds Shift from Passive to Active Investors

Oloworaran highlighted that the inauguration of PILC signals a strategic shift in the role of pension funds. Rather than being passive investors, pension funds will actively drive economic development, leveraging one of Nigeria’s largest pools of savings capital.

This transformation requires enhanced stewardship by Pension Fund Administrators (PFAs), stronger influence in corporate governance, and assertive participation in market outcomes.

Building a Resilient and Sustainable Pension Market

The overarching goal, Oloworaran explained, is to build a resilient system that works efficiently for all contributors while unlocking infrastructure investment at scale. The initiative is expected to stimulate job creation, improve productivity, and generate long-term value for pension contributors.

By mobilizing pension funds through the PILC investment consortium, Nigeria aims to bridge critical infrastructure gaps, drive economic growth, and transform the pension industry into a strategic engine for national development.

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The Federal Government has inaugurated the board of the National Pension Commission, charging members to safeguard pension assets and strengthen governance. The PenCom board pension assets responsibility includes protecting over N28 trillion under the Contributory Pension Scheme.

The inauguration took place in Abuja, where officials described the commission as a key institution responsible for managing retirement savings for millions of Nigerians.

FG Tasks PenCom Board on Pension Assets Transparency

Speaking at the event, the Secretary to the Government of the Federation, George Akume, said the board must uphold transparency and accountability in all decisions. He stressed that strong governance will build public trust in the pension system.

He also warned against interference in daily operations, noting that management should handle routine activities while the board focuses on oversight. According to him, this balance is essential for institutional effectiveness.

PenCom Board Pension Assets Exceed N28 Trillion

Officials confirmed that pension assets under the scheme have grown beyond N28 trillion, reflecting steady expansion in Nigeria’s pension industry.

The government said the board must protect these funds through strong risk management and internal controls. As a result, contributors can remain confident that their savings are secure.

Board Expected to Drive Policy and Reforms

The government expects the board to provide strategic direction and policy guidance in line with existing pension laws. In addition, members must ensure compliance with regulatory frameworks governing the sector.

The Chairman of the board, Opeyemi Agbaje, said members will prioritise integrity and strong leadership. He added that the board will support national development by investing pension funds in key sectors such as infrastructure and housing.

Management Pledges Collaboration

The Director-General of PenCom, Omolola Oloworaran, described the inauguration as timely. She said it restores the board’s oversight role and strengthens governance within the commission.

She also pledged that management would work closely with the board to ensure decisions benefit contributors and retirees.

The PenCom board pension assets mandate highlights the importance of strong oversight in Nigeria’s financial system. With trillions of naira at stake, the board’s role remains critical to ensuring transparency, accountability, and long-term sustainability.

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Nigeria’s pension industry, now valued at over ₦20 trillion, has the potential to reshape the country’s housing sector if a portion of the funds is redirected into affordable housing projects, housing and financial experts have said.

Industry analysts note that Nigeria currently faces a housing deficit estimated at between 20 and 28 million units, largely due to limited long-term financing, high construction costs and a weak mortgage market. They argue that pension funds, which are designed for long-term investment, could provide the patient capital required to support large-scale housing development.

According to data from the National Pension Commission (PenCom), pension assets crossed the ₦20 trillion mark by the end of 2025. However, less than three per cent of these funds are currently invested in real estate-related instruments such as housing finance, infrastructure or real estate investment trusts.

Most pension investments remain concentrated in Federal Government securities, money market instruments and equities, reflecting conservative investment mandates and regulatory constraints that have historically limited exposure to alternative assets.

Experts say even a small shift toward housing-focused investments could unlock significant capital for developers and mortgage lenders, enabling the delivery of more affordable homes.

One of the major challenges in the housing sector is the high cost of borrowing, with commercial lending rates often exceeding 25 per cent. This makes it difficult for both developers and prospective homeowners to access financing.

Pension funds, however, operate on longer investment horizons, making them suitable for long-term instruments such as mortgage-backed securities, housing investment funds, development trusts and other structured products.

Housing analysts recommend a carefully managed allocation of pension assets into the housing sector, supported by strong regulatory oversight to protect contributors’ savings while encouraging capital market growth.

They also note that such investments could stimulate economic activity by creating jobs in construction, boosting housing supply and strengthening related industries.

For this approach to succeed, experts say clear regulatory guidelines, improved housing-linked financial instruments and a stable macroeconomic environment will be required to attract institutional investment into the real estate sector.

They add that channeling a fraction of pension assets into housing could help reduce reliance on expensive financing, attract private investors and accelerate efforts to close Nigeria’s housing gap.

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The National Pension Commission (PenCom) has taken a major step toward expanding pension access in Nigeria with the launch of Awabah, the country’s first Accredited Pension Agent, in a move targeted at millions of workers outside the formal employment system.

At the executive launch in Abuja, PenCom’s Director-General, Omolola Oloworaran, described personal pensions as a critical part of Nigeria’s economic infrastructure, stressing that the next phase of pension reform must focus on workers in the informal sector.

According to data from the National Bureau of Statistics, over 93 per cent of Nigeria’s workforce operates in the informal economy, representing more than 75 million people who largely retire without structured savings or financial protection. Despite pension assets exceeding ₦27 trillion and over 10 million Retirement Savings Accounts (RSAs), coverage remains concentrated among salaried workers.

Oloworaran said Awabah was created to close this gap by taking pension services directly to markets, farms, workshops, motor parks, and other informal workspaces across the country.

“Accredited Pension Agents are our bridge to the informal economy,” she said. “This decade must secure pensions for the informal majority, just as earlier reforms secured the formal worker.”

Micro-Contributions and Technology-Driven Access

PenCom explained that the Accredited Pension Agent framework, introduced in September last year, allows trusted agents to collect small, flexible pension contributions, helping to build confidence among self-employed Nigerians.

Through digital platforms, contributors can save as little as ₦500, make weekly or monthly payments, and manage contributions without visiting pension offices. The commission also confirmed that personal pension contributions remain tax-deductible, making them more attractive to low-income earners.

Technology is expected to play a central role, with mobile phones and payment terminals enabling easy onboarding and contribution tracking.

POS Integration to Drive Nationwide Adoption

Awabah’s Chief Executive Officer, Tunji Andrew, said the company plans to register five million contributors by 2026, leveraging Nigeria’s widespread Point of Sale (POS) infrastructure.

Under the model, Nigerians can enroll in personal pension plans directly from POS terminals, regardless of device type. The initiative is being rolled out in partnership with payment service providers, including Moniepoint.

“Our goal is to make pension registration as simple as everyday transactions,” Andrew said. “You should be able to walk into a POS location, onboard in a few clicks, and start contributing immediately.”

He added that contributors will be able to set up automatic monthly deductions, allowing pension savings to run in the background without constant manual input.

Flexible Withdrawals for Informal Workers

Beyond contributions, Awabah aims to simplify access to pension funds under existing regulations. Contributors are permitted to withdraw up to 50 per cent of their contributions after three months, a feature designed to suit the cash-flow realities of informal workers.

The company said it is working toward making withdrawals as seamless as ATM transactions, removing common barriers that discourage long-term savings.

Broader Impact on Financial Inclusion

The personal pension scheme targets traders, artisans, gig workers, self-employed professionals, and even salaried workers who wish to open additional pension accounts beyond their RSAs.

PenCom officials noted that expanding pension participation among informal workers aligns with Nigeria’s broader financial inclusion and inclusive growth goals, while also strengthening long-term domestic savings.

With Awabah now operational, stakeholders believe the initiative could redefine how Nigerians in the informal economy plan for retirement, shifting pensions from a formal-sector benefit to a nationwide safety net.

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