PenCom registers 143,248 new pension accounts as coverage gap persists

The National Pension Commission (PenCom) reported a 24.7% increase in new Retirement Savings Account (RSA) registrations under Nigeria's Contributory Pension Scheme (CPS) in the first quarter of 2026. This surge brought the total number of RSAs to 143,248, up from 114,864 in the previous quarter. The cumulative RSA registrations rose from 11.04 million at the end of December 2025 to 11.18 million by March 2026.

PenCom attributed this growth to enhanced digital onboarding and ongoing public awareness campaigns, despite pension coverage still lagging behind Nigeria's sizable labor force, which stands at approximately 92 million individuals. The increase in RSAs came from the five largest Pension Fund Administrators (PFAs), who together accounted for 54.41% of the new registrations, down from 62.11% in the previous quarter.

Despite this progress, only about 12.1% of Nigeria's estimated labor force is covered by pensions, with a significant portion of this coverage concentrated among informal-sector workers. The commission sees the relatively young age profile of new pension contributors as a strength for the long-term growth of the pension industry.

With several decades remaining until retirement, these contributors have a greater opportunity for their pension savings and investments to accumulate significantly. PenCom also proposed raising statutory pension contribution rates as part of its ongoing review of the Pension Reform Act (PRA) 2014, which currently mandates employers to contribute 10% of an employee's monthly salary, while employees contribute 8%, totaling 18%.

Additionally, PenCom is exploring the creation of a new investment vehicle to channel resources from Nigeria's $22 billion pension industry into essential infrastructure projects.