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 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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