Key Takeaways
- • PenCom has ruled out any extension of the June 30, 2027 deadline for pension fund administrators and pension fund custodians to complete recapitalisation, according to Director-General Omolola Oloworaran.
- • Pension assets rose from N20.79trn in July 2024 to N31.8trn at the end of August 2026, an increase of roughly N11trn, per Oloworaran.
- • PenCom has secured a commitment from pension fund administrators to add three million funded, active pension accounts within one year, with the Personal Pension Plan and digital onboarding as key channels.
- • Nearly 70 per cent of private-sector employees retire with pension payments below the national minimum wage, and employers are being urged to base contributions on fuller earnings.
- • President Bola Tinubu is expected to launch a pension security initiative on November 10, 2026, featuring PenCare and a minimum pension guarantee under Sections 82 and 84 of the Pension Reform Act 2014.
Summary
The National Pension Commission (PenCom) has ruled out any extension of the June 30, 2027 deadline for pension fund administrators (PFAs) and pension fund custodians to complete their recapitalisation. Director-General Omolola Oloworaran said the exercise is a critical requirement for strengthening the industry and protecting workers' retirement savings. "We are not changing our minds," she said, adding that operators will face increased scrutiny over investment discipline, performance and accountability. She framed the next phase of reform around institutional strength rather than asset growth: "Size is what we have achieved. Strength is what we now demand."
According to Oloworaran, pension assets increased from N20.79trn in July 2024 to N31.8trn at the end of August 2026, an increase of approximately N11trn over slightly more than two years. She argued that asset growth alone should not be the measure of the contributory pension scheme's effectiveness, and that investment strategies must be designed to protect contributors against inflation and to deliver retirement security. Pension assets, she stressed, belong to workers and must not be treated as funds available for government spending. Investments in infrastructure, housing, electricity and businesses are under consideration, but must be prudent and in contributors' best interests.
On coverage, PenCom has obtained a commitment from PFAs to establish three million additional funded and active pension accounts within one year. The commission plans to use the Personal Pension Plan, accredited pension agents and digital onboarding platforms to reach traders, artisans, farmers and commercial transport operators. Oloworaran noted that roughly nine Nigerians remain outside the scheme for every one covered.
Adequacy of benefits is another priority. Oloworaran said nearly 70 per cent of private-sector employees retire with pensions below the national minimum wage, and more than 55 per cent of all pensioners receiving below that threshold come from the private sector. She attributed part of the problem to employers basing contributions on a limited portion of earnings. The statutory framework requires a combined 18 per cent of pensionable pay, with 10 per cent from employers and eight per cent from employees. PenCom said it would use its enforcement powers to recover outstanding contributions and hold defaulting employers accountable, including those who deduct contributions from salaries without remitting them.
The President is expected to launch a pension security initiative on November 10, 2026, subject to the programme proceeding as scheduled. It is expected to include PenCare, a pension-related healthcare programme, and a minimum pension guarantee provided for under Sections 82 and 84 of the Pension Reform Act 2014. The commission is also pursuing greater participation by state governments in the contributory scheme and a strengthened pension protection fund.
According to Oloworaran, pension assets increased from N20.79trn in July 2024 to N31.8trn at the end of August 2026, an increase of approximately N11trn over slightly more than two years. She argued that asset growth alone should not be the measure of the contributory pension scheme's effectiveness, and that investment strategies must be designed to protect contributors against inflation and to deliver retirement security. Pension assets, she stressed, belong to workers and must not be treated as funds available for government spending. Investments in infrastructure, housing, electricity and businesses are under consideration, but must be prudent and in contributors' best interests.
On coverage, PenCom has obtained a commitment from PFAs to establish three million additional funded and active pension accounts within one year. The commission plans to use the Personal Pension Plan, accredited pension agents and digital onboarding platforms to reach traders, artisans, farmers and commercial transport operators. Oloworaran noted that roughly nine Nigerians remain outside the scheme for every one covered.
Adequacy of benefits is another priority. Oloworaran said nearly 70 per cent of private-sector employees retire with pensions below the national minimum wage, and more than 55 per cent of all pensioners receiving below that threshold come from the private sector. She attributed part of the problem to employers basing contributions on a limited portion of earnings. The statutory framework requires a combined 18 per cent of pensionable pay, with 10 per cent from employers and eight per cent from employees. PenCom said it would use its enforcement powers to recover outstanding contributions and hold defaulting employers accountable, including those who deduct contributions from salaries without remitting them.
The President is expected to launch a pension security initiative on November 10, 2026, subject to the programme proceeding as scheduled. It is expected to include PenCare, a pension-related healthcare programme, and a minimum pension guarantee provided for under Sections 82 and 84 of the Pension Reform Act 2014. The commission is also pursuing greater participation by state governments in the contributory scheme and a strengthened pension protection fund.
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