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 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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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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