PenCom adds 143,248 pension accounts as coverage reaches...

Nigeria’s pension industry registered 143,248 new Retirement Savings Accounts (RSAs) in the first quarter of 2026, a 24.7 per cent increase from 114,864 accounts opened in the previous quarter, but pension coverage remains low at just 12.1 per cent of the estimated 92 million labour force.

The National Pension Commission (PenCom), in its Q1 2026 report, said cumulative RSA registrations rose from 11.04 million at the end of December 2025 to 11.18 million by March 2026, reflecting stronger enrolment through digital onboarding and sustained public sensitisation.

PenCom said the quarterly increase represented a significant improvement from Q4 2025, when 114,864 new accounts were registered.

“Cumulative RSA registrations rose from 11,040,227 at the end of Q4 2025 to 11,183,475 at the end of Q1 2026, on the back of 143,248 new accounts opened during the quarter,” the Commission said.

Despite the growth, the penetration rate remains low relative to Nigeria’s workforce, highlighting a substantial coverage gap, particularly among workers in the informal sector who remain outside the Contributory Pension Scheme.

The latest increase also suggests growing competition among Pension Fund Administrators (PFAs).

The five largest PFAs accounted for 54.41 per cent of new registrations, down from 62.11 per cent in the preceding quarter. PenCom said the decline in concentration indicated increasing competition, particularly among mid-sized operators.

The demographic profile of new contributors was also heavily tilted towards younger workers.

Those below 40 years accounted for 75.31 per cent of new RSA registrations in the quarter, giving the industry a relatively young contributor base with several decades for pension savings to accumulate.

PenCom said the age profile could also influence pension investment strategies because contributors with longer periods before retirement may have greater capacity to accommodate appropriate levels of investment risk.

The stronger enrolment comes as the regulator considers wider changes to the pension system.

In July, PenCom disclosed plans to increase the statutory pension contribution rate as part of the ongoing review of the Pension Reform Act 2014.

Under the existing framework, employers contribute a minimum of 10 per cent of employees’ monthly emoluments while employees contribute 8 per cent, resulting in a combined mandatory contribution of 18 per cent.

PenCom is seeking to increase the rate, although the proposal has faced resistance from the organised private sector, which has raised concerns about the additional cost burden on employers.

The Commission is also developing plans for a new investment vehicle that could channel part of Nigeria’s growing pension savings into critical infrastructure projects.

The size of the pension industry gives such a strategy significant potential.

PenCom’s unaudited industry figures showed total pension assets reached a record N31.32 trillion in May 2026, up 1.23 per cent from N30.94 trillion in April.

On a year-on-year basis, pension assets increased 29.5 per cent from N24.18 trillion in May 2025.

For Nigeria’s pension industry, the latest RSA registrations point to steady expansion but also highlight a major structural challenge: more than 87 per cent of the estimated labour force remains outside registered pension accounts.

Closing that gap will require deeper digital onboarding, stronger enforcement of employer compliance and more effective mechanisms for bringing informal-sector workers into the formal pension system.