Key points
- Pension assets under Nigeria’s Contributory Pension Scheme (CPS) have risen by N10.7 trillion in two years to N31.48 trillion.
- The number of pension contributors increased by 938,229, reaching 11.32 million.
- PenCom has directed Pension Fund Administrators (PFAs) to approve retirement benefits within 48 hours.
- The Federal Government’s N758 billion Pension Bond has cleared longstanding pension liabilities dating back to 2007.
Main Story
Nigeria’s pension assets have increased by N10.7 trillion over the past two years, reaching N31.48 trillion, as the National Pension Commission (PenCom) reported strong growth in contributors, investment returns and pension fund performance.
PenCom Director-General, Omolola Oloworaran, disclosed the figures during a State House briefing in Abuja while presenting the commission’s performance scorecard for the past two years.
According to the commission, pension assets under the Contributory Pension Scheme (CPS) rose from N20.79 trillion in July 2024 to N31.48 trillion in July 2026, representing a 51 per cent increase.
PenCom described the expansion as the fastest two-year growth recorded since the introduction of the Contributory Pension Scheme, attributing the performance to improved contributor confidence, wider pension enrolment and stronger investment returns.
The commission also reported an increase in pension contributors from 10.42 million to 11.32 million, with 938,229 new contributors joining the scheme during the review period.
The Issues
Despite the sustained growth of the Contributory Pension Scheme, extending pension coverage to Nigeria’s large informal sector remains one of the industry’s biggest challenges.
The commission also continues to address delayed employer remittances, outstanding pension liabilities and the need to improve retirement benefit administration.
Industry stakeholders believe that stronger compliance, faster benefit approvals and prudent investment management will be critical to sustaining confidence in the pension system.
What’s Being Said
Oloworaran described the last two years as a significant milestone for the pension industry, noting that the commission’s focus would now shift towards expanding pension coverage and strengthening retirement security.
PenCom also announced several measures aimed at improving retirees’ welfare.
Under the Pension Boost 1.0 initiative, monthly pension payments increased by 22 per cent, rising from N12.2 billion to N14.9 billion.
The commission said more than 195,000 pensioners from treasury-funded Ministries, Departments and Agencies (MDAs) who retired on or before July 29, 2024, have also benefited from the N32,000 consequential adjustment arising from the 2024 national minimum wage review.
PenCom further disclosed that pensions under the defunct Nigeria Social Insurance Trust Fund (NSITF) scheme had been reviewed after remaining unchanged for 21 years.
According to the commission, one retiree’s monthly pension increased from N18,000 to N206,000, while N8.7 billion in arrears was paid to 2,116 retirees.
More Insights
The number of retirees receiving pension benefits rose from 658,811 in July 2024 to 819,411 in July 2026.
During the same period, cumulative pension benefit payments increased from N2.3 trillion to N3.44 trillion.
To improve service delivery, PenCom has directed all Pension Fund Administrators (PFAs) to process and approve retirement benefit applications within 48 hours.
The commission also reported progress in pension compliance, with recoveries of unremitted employer pension contributions increasing from N28.6 billion to N36.6 billion through stronger enforcement and collaboration with the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC).
A major milestone was the Federal Government’s N758 billion Pension Bond, introduced to clear outstanding pension liabilities dating back to 2007.
According to PenCom, the bond comprises N387.5 billion for pension increases, N253 billion for accrued pension rights, N107 billion for the Pension Protection Fund and N10 billion for professors’ retirement benefits, benefiting about 957,045 pensioners.
The commission added that the intervention eliminated the backlog of accrued pension rights inherited in 2024, with payments now made up to December 2029 for 73,732 beneficiaries.
What’s Next
PenCom said it will focus on expanding pension coverage beyond the formal sector through its proposed Pension Revolution 2.0 initiative.
The commission also plans to develop new investment frameworks that will enable pension funds to support infrastructure projects across roads, ports, energy, healthcare, education and agriculture while maintaining the safety and sustainability of contributors’ funds.
Bottom Line
The growth of Nigeria’s pension assets to N31.48 trillion reflects increasing confidence in the Contributory Pension Scheme and stronger investment performance. With contributor numbers rising, benefit administration improving and outstanding pension liabilities being addressed, PenCom is now shifting attention towards expanding pension inclusion and leveraging long-term retirement savings to support national infrastructure development.
