The Federal Government of Nigeria has proposed a total of ₦334.54 billion in the 2026 appropriation bill to fund the contributory pension schemes of its various institutions. This allocation is designed to cover the pension obligations of 674 federal entities including security agencies, universities, and teaching hospitals.
The provision ensures that the government meets its statutory employer contributions for a workforce serving across the federation.
According to the budget proposal submitted to the National Assembly, the Nigeria Police Force has secured the largest individual share of this fund. Police formations and commands are allocated ₦73.671 billion for pension contributions, which is a component of their broader ₦1.302 trillion total budget.
Other major security allocations include ₦15.493 billion for the Nigeria Security and Civil Defence Corps and ₦8.459 billion for the Nigeria Correctional Services.
The 2026 budget signal comes at a time of significant growth for the domestic pension industry. Total pension assets in Nigeria reached ₦26.66 trillion by October 2025, representing a 21.63% year-on-year increase. Despite macroeconomic pressures such as inflation and currency volatility, the industry has maintained stability by concentrating investments in Federal Government securities.
These instruments currently account for 59.86% of the total pension portfolio, valued at ₦15.96 trillion.
The number of Retirement Savings Account enrollments has also seen a steady rise, reaching 10.97 million participants as more formal sector and micro-pension workers join the scheme. This budgetary commitment of ₦334.54 billion is expected to provide continued stability for over 552,000 retirees currently receiving benefits.
The government expects this funding to guarantee that new retirees receive their lump-sum payments and monthly stipends without the delays that characterized previous legacy systems.
