Nigeria’s pension fund assets have recorded a robust 19% year-on-year growth, reaching N23.33 trillion by the end of the first quarter of 2025, according to data from the National Pension Commission (PenCom).
The fund, which stood at N22.51 trillion at the close of 2024, grew steadily to N22.86 trillion in January and N23.27 trillion by February before climbing by an additional N61.91 billion to hit N23.33 trillion in March.
Despite the significant increase in asset value, participation in the Contributory Pension Scheme (CPS) remains limited, with Retirement Savings Accounts (RSAs) totaling 10,689,846 as of March 2025—a modest 3.98% rise compared to the same period in 2024.
PenCom is now intensifying efforts to expand participation, particularly among Nigeria’s vast informal sector, which comprises over 77 million workers.
Speaking at the inaugural Pension Industry Leadership Retreat in Lagos, themed “Sustainable Retirement—Strategic Blueprint for Economic Development and Inclusion,” PenCom’s Director-General, Omolola Oloworaran, highlighted the low engagement of informal sector workers in the CPS. “Of over 77 million informal sector workers, less than 10,000 are active contributors,” Oloworaran noted. “We would look for opportunities to incentivize the informal sector to participate in the pension scheme.”
Her remarks were echoed by Lagos State Governor Babajide Sanwo-Olu, represented by Commissioner for Finance Abayomi Oluyomi. “Retirement security must extend beyond formal employment to include the informal sector—market traders, artisans, and other economic workers who form the backbone of our economy,” Oluyomi said. He emphasized the need for innovative, accessible, and sustainable pension solutions to achieve true economic inclusion.
In a significant step toward modernizing pension administration, PenCom has rolled out the Pension Contribution Remittance System (PCRS), effective June 1, 2025. The fully digital platform allows employers to upload employee schedules and remit contributions online via approved payment solution providers, including Paypen, Pencentral, Pensphere, Penremit, Pensol, Penco, Awabah, Epcoss, and Interswitch.
PenCom stressed that the PCRS is free, ensures accurate data verification, and streamlines the remittance process, with some employers already adopting the system ahead of the compliance deadline.
The PCRS ensures that pension remittance schedules are accurate and employee PINs and pension fund administrators are verified before processing, PenCom stated on its social media platforms, promoting the system’s ease and efficiency.
As Nigeria’s pension industry continues to grow, PenCom’s focus on digital innovation and informal sector inclusion signals a strategic push to secure retirement futures for millions of Nigerians.
WHAT YOU SHOULD KNOW
Nigeria’s pension fund has grown significantly to N23.33 trillion in Q1 2025, but participation remains low, particularly in the informal sector, where less than 10,000 of over 77 million workers are active contributors.
PenCom is prioritizing innovative solutions, like the new digital Pension Contribution Remittance System and incentives, to boost inclusion and ensure broader retirement security.
