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) 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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Emerging & Frontier Capital (EFC) has warned that the National Pension Commission’s (PenCom) new capital rules for Pension Fund Administrators (PFAs) could hurt profitability, even as they promote consolidation and stability in the industry.

PenCom recently raised the minimum capital requirement from ₦5 billion to ₦20 billion for PFAs with Assets Under Management (AUM) below ₦500 billion, and ₦20 billion plus 1% of AUM above ₦500 billion for larger firms. Operators must comply by December 31, 2026.

EFC described the policy as logical but cautioned that it could sharply reduce returns and dividend payouts. The firm estimated that a ₦5 billion investment with a 10-year internal rate of return (IRR) of 34.2% could now yield just 3.6%, while a ₦20 billion investment might post a negative IRR of -8.3%.

The report also projected that returns for top operators like Stanbic IBTC Pensions and Access ARM Pensions could fall by up to 20 percentage points by 2031.

EFC suggested that PenCom adopt AUM-based requirements and encourage PFAs to list on the stock exchange to improve transparency and allow contributors to benefit through dividends.

Despite profitability concerns, the firm said the reforms would likely streamline the industry and improve efficiency over time.

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In a decisive step to strengthen Nigeria’s pension industry, the National Pension Commission (PenCom) has raised the minimum capital requirements for Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) to ₦20 billion and ₦25 billion respectively. Existing operators have until 31 December 2026 to meet the new thresholds, while the requirements take immediate effect for new licence applicants.

The announcement, made via a circular issued by the Commission this week, comes as part of its broader reform agenda, Pension Revolution 2.0, aimed at overhauling the regulatory and investment landscape of the pension sector. This is the first adjustment to PFA capital requirements since 2021, when the benchmark was increased from ₦1 billion to ₦5 billion. For PFCs, it marks the first revision since the ₦2 billion baseline was established in 2004.

Under the new framework, capital requirements for PFAs will now be tiered according to the size of their Assets Under Management (AUM). Category A PFAs, with AUM of ₦500 billion and above, must meet a minimum capital of ₦20 billion plus an additional 1% of their AUM. Category B, comprising PFAs with less than ₦500 billion in AUM, must raise capital to a flat ₦20 billion. Category C, for specialised institutions such as NPF Pensions Limited and the Nigerian University Pension Management Company Limited, carries higher fixed thresholds of ₦30 billion and ₦20 billion respectively.

PFCs, meanwhile, will now be required to maintain a Shareholders’ Fund unimpaired by losses of ₦25 billion, plus 0.1% of the Assets Under Custody (AuC). Both PFAs and PFCs must comply with these requirements by the 2026 deadline, with PenCom stating that audited financials will be reviewed biennially and any shortfall must be rectified within 90 days.

Explaining the rationale for the upward revision, A.M. Saleem, Director of the Surveillance Department at PenCom, said: “The review is to enhance the financial stability and operational resilience and improve service delivery and long-term viability of the PFAs and PFCs. The capital requirement was reviewed in line with global best practice, which ensures that capital is proportionate to the risk exposure of the Pension Fund Operator. The new model aligned the capital requirement with the Pension Asset Under Management and Assets Under Custody of the PFAs and PFCs, respectively.”

He further noted that since the last capital review, the industry has witnessed significant asset growth alongside growing macroeconomic pressures. “PFAs are therefore required to maintain adequate capital to sustain the achievements of the Contributory Pension Scheme after 21 years of existence, support ongoing pension reform initiatives aimed at positioning the Nigerian pension industry to respond to macroeconomic pressures, and deploy adequate resources to effectively fund operations, improve service delivery and ensure long-term sustainability.”

The capital increase is part of a broader regulatory pivot under Pension Revolution 2.0. In addition to the capital adjustments, PenCom has announced plans to introduce a minimum pension guarantee to ensure retirees maintain a dignified standard of living. The Commission has also expanded the scope of investable assets to include reverse repos, gold receipts, securities lending, private placements, commodity-backed instruments, agriculture funds, and derivatives, strictly for risk management. These changes, accompanied by new risk limits and ESG integration, reflect PenCom’s intent to diversify pension portfolios while reinforcing the long-term health and competitiveness of the sector.

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The National Pension Commission (PenCom) is set to roll out a revised investment regulation aimed at expanding pension fund opportunities in alternative assets and boosting real returns for contributors under the Contributory Pension Scheme (CPS).

Director-General Ms. Omolola Oloworaran disclosed this during a visit to Trade Union Congress (TUC) President, Comrade Festus Osifo, in Abuja.

“This initiative is part of ongoing reforms to address the erosion of value in pension savings and mitigate the impact of inflation on pension assets,” Oloworaran said.

She added that PenCom is collaborating with the Central Bank of Nigeria (CBN) and the Ministry of Finance to create frameworks that allow pension investments in naira but generate returns in dollars, protecting retirement funds from currency risks.

Ololoworaran also revealed that a minimum pension will soon be introduced for all retirees under the CPS, following President Bola Tinubu’s approval of a ₦758 billion bond to finance the Pension Protection Fund (PPF).

The PenCom boss urged the TUC to support stricter enforcement of the Pension Reform Act (PRA) 2014, which mandates employers to remit workers’ contributions promptly.

TUC President Osifo praised PenCom’s professionalism and pledged the union’s support. He also called for “a review of the PRA to introduce more flexibility in pension fund investments, ensuring workers’ savings are better shielded from inflation and exchange rate pressures.”

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