Nigeria’s Pension Assets Hit ₦25 Trillion as PenCom Expands Coverage and Reforms Sector
Pension Fund Crosses ₦25 Trillion Milestone
Nigeria’s pension industry has achieved a major milestone, with total pension assets now exceeding ₦25 trillion, according to the National Pension Commission (PenCom). The development marks a significant leap in the country’s retirement savings landscape and underscores the growing impact of pension funds on national economic development.
Speaking at a two-day sensitisation workshop in Yola for workers and retirees across the North-East, PenCom Director-General, Ms. Omolola Oloworaran, said the remarkable growth reflects transparency, strong governance, and accountability in the management of the Contributory Pension Scheme (CPS).
Represented by Alhaji Bello Abubakar, Commissioner for Administration at PenCom, the DG noted that the sustained confidence of contributors and prudent investments by Pension Fund Administrators (PFAs) continue to drive the scheme’s expansion.
Over 844,000 Retirees Now Enjoy Reliable Monthly Benefits
Highlighting the human impact of the pension revolution, Oloworaran disclosed that:
- More than 552,000 retirees receive regular monthly pensions under the CPS.
- About 291,735 retirees have accessed lump-sum benefits, reflecting flexibility in the system.
- In total, over 844,000 retirees in both public and private sectors now enjoy steady and transparent retirement income.
She emphasised that this progress proves the sustainability and efficiency of the Contributory Pension Scheme, which continues to evolve as one of Africa’s most successful pension models.
Reforms Under Pension Revolution 2.0
Oloworaran outlined several initiatives under the new “Pension Revolution 2.0” framework, aimed at deepening coverage, improving retiree welfare, and ensuring financial inclusion. These include:
- Free health insurance for retirees, starting with low-income categories.
- Stricter capital and governance standards for PFAs and Custodians.
- Whistle-blowing guidelines for monitoring pension fund assets.
- Revised investment regulations to promote responsible asset diversification.
- Digital enrolment tools for the upcoming 2026 retiree registration exercise.
She explained that these measures are part of PenCom’s strategy to enhance trust, transparency, and long-term growth across the pension ecosystem.
10 Million Nigerians Now Under Pension Coverage
According to PenCom, more than 10 million Nigerians—including civil servants, private sector employees, and self-employed individuals enrolled under the Micro Pension Plan—are now part of the national pension system.
This expanded reach, Oloworaran said, shows that Nigeria’s pension framework is evolving from a salary-based entitlement system to a sustainable savings culture that secures workers’ futures while mobilising long-term capital for infrastructure and national projects.
“We have moved from an era of unpaid entitlements and uncertainty to one anchored on transparency, sustainability, and inclusiveness,” she declared.
Challenges and the Road Ahead
Despite the achievements, the PenCom DG acknowledged lingering challenges, including limited coverage in parts of the informal sector and non-compliance by some states and employers.
She noted that ongoing stakeholder workshops—like the Yola engagement organised in collaboration with the National Salaries, Incomes and Wages Commission (NSIWC)—are designed to strengthen compliance, enhance public awareness, and protect the welfare and dignity of Nigerian pensioners.
BRANDECONOMY Insight: Pension Power and Economic Stability
The growth of Nigeria’s pension assets to over ₦25 trillion signals the rising power of institutional savings in driving economic transformation. Pension funds now rank among the largest domestic sources of long-term capital, fueling investments in infrastructure, bonds, and the real sector.
Experts say that with proper reforms, pension funds could become a stabilising pillar of Nigeria’s economy, reducing reliance on volatile oil revenues and external debt.
The next phase, analysts believe, should focus on expanding inclusion, enforcing compliance at state levels, and channeling pension investments into productive sectors that create jobs and build national resilience.
