KEY POINTS
- Retirement Savings Account (RSA) membership grew from 9,529,127 in 2021 to 11,040,227 in 2025—a 15.9% increase.
- Total Assets Under Management (AUM) have officially surpassed ₦27 trillion, reinforcing the industry’s role in capital formation.
- Growth remains “moderate” due to low formal sector participation, incomplete state adoption of the Contributory Pension Scheme (CPS), and employer non-remittance.
- Over 10 Pension Support Service Providers (PSSPs) have been licensed to streamline processes, supported by revised investment guidelines.
MAIN STORY
The Nigerian pension industry continues to demonstrate resilience and expansion, with the Pension Fund Operators Association of Nigeria (PenOp) reporting a steady climb in contributors. Between 2021 and 2025, the number of Nigerians with a Retirement Savings Account (RSA) rose by over 1.5 million, reflecting a successful drive to onboard new contributors into the Contributory Pension Scheme (CPS).
Despite these gains, PenOp highlighted that structural “bottlenecks” prevent the sector from reaching its full potential. The association noted that while the formal sector is the bedrock of the scheme, participation remains low in certain areas. Furthermore, several states have yet to fully adopt the CPS, and a significant number of employers continue to default on remitting their employees’ contributions.
To counter these challenges, the industry has undergone a digital and regulatory overhaul. Data recapture initiatives have cleaned up contributor records, while the licensing of Pension Support Service Providers (PSSPs) has improved accessibility for both employers and employees. Most notably, the total Assets Under Management (AUM) have now crossed the ₦27 trillion threshold. This pool of capital is increasingly vital to Nigeria’s financial markets, with revised investment guidelines allowing fund managers to optimize returns while maintaining capital preservation.
WHAT’S BEING SAID
- On membership growth: “The growth reflected continued expansion of the Contributory Pension Scheme (CPS) and sustained onboarding of new contributors,” stated PenOp.
- Regarding challenges: “Growth remained moderate due to structural challenges… including low participation in the formal sector and non-remittance of pension contributions.”
- On investment strategy: “Revised investment guidelines expanded portfolio flexibility, enabling pension fund managers to not only preserve capital but also optimise long-term returns.”
WHAT’S NEXT
- Stakeholders expect intensified engagement with state governments that have yet to domesticate the Pension Reform Act.
- With formal growth being “moderate,” more resources may be channeled toward the Micro Pension Plan to capture Nigeria’s vast informal workforce.
- Following the rise in AUM, fund managers are likely to explore more infrastructure and real estate investments under the flexible new guidelines.
BOTTOM LINE
The Bottom Line is that Nigeria’s pension industry is no longer just a “retirement bucket” but a cornerstone of national capital formation. While ₦27 trillion in assets is a massive milestone, the industry’s long-term health depends on fixing the structural issues of non-remittance and expanding coverage beyond the formal elite.
 reporting a steady climb in contributors. Between 2021 and 2025, the number of Nigerians with a Retirement Savings Account (RSA) rose by over 1.5 million, reflecting a successful drive to onboard new contributors into the Contributory Pension Scheme (CPS).){kind=link}