The National Pension Commission (PenCom) has set a target of three million additional funded active pension accounts within one year as part of efforts to expand retirement savings coverage in Nigeria.
The Commission’s director-general, Omolola Oloworaran, announced the target on Thursday at the 2026 National Pension Week conference and awards in Abuja.
She said pension fund administrators had committed to opening the accounts, stressing that the target covered funded accounts rather than registrations without contributions.
“For every Nigerian inside the scheme, roughly nine more are standing outside it,” Oloworaran said, highlighting the need to extend pension coverage to workers in the informal sector.
She identified market traders, artisans, farmers, transport workers and young technology professionals as groups requiring greater access to retirement savings.
According to her, PenCom would deploy personal pension funds, accredited pension agents and digital platforms to reach workers outside formal employment.
Oloworaran disclosed that pension assets rose from N20.79 trillion in July 2024 to N31.8 trillion at the end of August 2026, representing an increase of about N11 trillion.
Despite the growth, she identified limited coverage, inadequate retirement benefits and employers’ failure to remit pension contributions as major challenges facing the industry.
She said almost 70 per cent of private-sector employees retired with pensions below the national minimum wage, while more than 55 per cent of retirees receiving pensions below the minimum wage came from the private sector.
The PenCom chief attributed the low retirement benefits partly to employers who calculate pension contributions using narrow definitions of pensionable earnings.
Under the Contributory Pension Scheme, the Pension Reform Act provides for a minimum combined contribution of 18 per cent of employees’ monthly emoluments, comprising 10 per cent from employers and eight per cent from workers.
Oloworaran warned employers against deducting pension contributions from workers’ salaries without remitting the funds, describing the practice as a threat to retirement security.
She said the Commission would exercise its powers under the Pension Reform Act to recover outstanding contributions.
The director-general also disclosed that PenCom would require pension fund administrators and custodians to complete their recapitalisation by June 30, 2027, to strengthen their capacity to safeguard pension assets.
She urged pension operators to deliver investment returns above inflation, noting that investment performance directly affects retirees’ purchasing power.
Oloworaran said pension funds could support infrastructure, housing, power and enterprise development, provided investments remained prudent and transparent.
“Pension money is not government money; it is the deferred wages of Nigerian workers,” she said.
She also urged federal and state governments to remit pension contributions promptly, fund accrued pension rights and ensure that all states joined the contributory scheme.
Oloworaran further disclosed that President Bola Tinubu would unveil the Pension Security Initiative on November 10. The initiative will feature the PenCare healthcare programme and a minimum pension guarantee, aimed at strengthening retirement protection, particularly for low-income pensioners.
Tinubu Tasks PenCom, Employers On Prompt Pension Remittance
In his remarks at the conference, President Tinubu tasked PenCom and employers with ensuring the prompt remittance of pension contributions and protecting workers’ retirement benefits.
Represented by the Secretary to the Government of the Federation, George Akume, the president said pensions were obligations rather than favours.
“A pension is not a favour granted by government; it is a wage earned and held in trust. It is a promise, and this administration has resolved that the promise will be kept,” Tinubu said.
He said the approval of N758 billion was intended to settle accrued pension rights and strengthen protection for retirees who had waited for years to receive their entitlements.
The president also identified rising living costs, inadequate retirement income and employers’ non-compliance with pension contribution requirements as issues requiring urgent attention.
He urged pension fund administrators and custodians to diversify investments responsibly, reduce costs and improve accountability.
Tinubu said pension assets represented the deferred wages and savings of Nigerian workers and must be managed with strong governance, transparency and risk management.
Earlier, the Head of the Civil Service of the Federation, Olumuyiwa Abel, said pension reforms aligned with the administration’s Renewed Hope agenda to improve workers’ welfare.
“Our pensioners have worked, they have toiled and have contributed to the building of this nation. So, they deserve to be recognised, rewarded and appreciated,” Abel said.
Bello Malabu, PenCom commissioner and chairman of the conference planning committee, said the success of the pension system should be measured by the financial security and dignity it provides retirees, rather than the volume of assets under management.
