90% of Nigerians lack formal pension coverage – Report

Nigeria's pension coverage stands at just 9.1% of the adult population, according to a recent survey. This leaves the vast majority of Nigerians without any formal pension arrangement, with over nine out of ten adults lacking adequate financial security for their retirement. The Access to Financial Services in Nigeria survey, conducted by Enhancing Financial Innovation and Access, reveals that despite improvements in financial inclusion, pensions remain one of the least-utilized formal financial products in the country.

The Director-General of the National Pension Commission, Omolola Oloworaran, emphasized the gravity of the retirement security challenge facing Nigeria, stating that while pension participation has risen from 7.8% in 2023 to 9.1% in 2026, roughly nine out of every ten Nigerian adults still remain outside any formal pension arrangement.

Many informal-sector workers, such as traders, farmers, mechanics, drivers, tailors, hairdressers, and digital economy workers, continue to earn incomes without building adequate financial protection for retirement. Oloworaran called for a dedicated pension inclusion model that identifies what would encourage these workers to save consistently.

She also proposed a pension inclusion map that combines EFInA's survey evidence with PenCom's regulatory and industry data to identify pension gaps according to various demographic factors, including geography, gender, age, occupation, and income.