PenCom: 200,505 personal pension accounts had no contributions in Q1

NIGERIA’S drive to expand pension coverage among workers outside the formal sector is facing a major funding gap, with 200,505 Personal Pension Plan (PPP) accounts holding no contributions as of March 2026.

The National Pension Commission (PenCom) said only 18,811 of the 219,316 PPP accounts registered by the end of the first quarter (Q1) were funded.

The figures mean just 8.58 percent of registered personal pension accounts were actively receiving contributions, while 91.42 percent remained unfunded.

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PenCom said the wide gap between registration and actual savings shows the need for pension operators to do more to convert account holders into active contributors.

The commission is targeting a 30 percent funded-account ratio by the end of 2026.

During Q1, 7,452 new PPP accounts were registered, while contributors paid N147.16 million into the scheme. Since inception, cumulative contributions under the PPP had reached N1.66 billion as of March.

The scheme also recorded N11.12 million in contingent withdrawals during the quarter, involving 15 contributors.

AccessARM Pension Managers maintained the largest share of PPP registrations, accounting for 52.4 percent of cumulative registrations.

Funding performance varied significantly across operators. Fidelity Pension Managers had the highest funding ratio among the operators highlighted by PenCom, with 87 percent of its 2,015 PPP accounts funded.

Guaranty Trust Pensions had 2,254 accounts, of which 54 percent were funded, while FCMB Pensions recorded 14,424 accounts with a 32 percent funding rate.

Veritas Glanvills had 4,455 PPP accounts, with 30 percent funded.

PenCom identified the low funding ratio as a key obstacle to increasing pension coverage, particularly in Nigeria’s informal economy.

The commission estimated that 92.1 million people work in the informal sector, yet only about 0.24 percent are covered through the PPP.

The PPP was created to bring workers outside the mandatory Contributory Pension Scheme into the pension system, particularly self-employed and informal-sector workers.

To close the gap, PenCom said it would strengthen supervision of accredited pension agents and deepen partnerships with cooperatives, fintech firms, telecommunications companies, trade unions and professional bodies.

It will also introduce quarterly funding-conversion targets for pension operators from the second quarter (Q2) of 2026.

The two operators with the highest cumulative PPP volumes will additionally be required to submit strategies showing how they intend to convert registered accounts into funded accounts.

While PPP funding remains weak, the broader pension industry expanded during the quarter.

Total pension assets increased by N2.07 trillion, from N27.45 trillion at the end of December 2025 to N29.52 trillion in March 2026, representing 7.53 percent growth.

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PenCom said the rise was largely supported by a 38.09 percent gain in domestic quoted equities, which lifted the value of pension funds invested in domestic equities by N1.50 trillion.

The number of Retirement Savings Accounts under the Contributory Pension Scheme also increased from 11.04 million to 11.18 million during the quarter.

Of the 143,248 new RSAs registered in Q1, contributors below 40 years accounted for 75.31 percent.

PenCom said expanding pension coverage, particularly among informal-sector workers, remains a central objective of its Pension Revolution 2.0 programme.