PenCom says improved digital onboarding and public awareness boosted registrations, but pension coverage remains low at just 12.1% of Nigeria’s estimated labour force……
Nigeria recorded a sharp increase in new Retirement Savings Account (RSA) registrations in the first quarter of 2026, with 143,248 new accounts opened under the Contributory Pension Scheme (CPS).
The figure represents a 24.7% increase from the 114,864 new accounts registered in the preceding quarter, according to the latest report from the National Pension Commission (PenCom).
The stronger enrolment pushed the total number of registered RSAs from 11.04 million at the end of December 2025 to 11.18 million by March 2026.
PenCom attributed the improvement to better digital onboarding processes and continued efforts to educate Nigerians about the importance of pension savings.
According to the commission, a total of 143,248 RSAs were opened during the first three months of 2026, significantly exceeding the number recorded in the final quarter of 2025.
PenCom said the increase reflected improvements in how prospective contributors can register digitally, alongside sustained public sensitisation campaigns.
The commission said the cumulative number of registered accounts rose from 11,040,227 in Q4 2025 to 11,183,475 in Q1 2026.
Despite the stronger quarterly performance, the figures reveal that a substantial portion of Nigeria’s working population remains outside the formal pension system.
PenCom estimates that registered pension contributors represent only about 12.1% of Nigeria’s estimated 92 million-strong labour force.
The gap is particularly significant among workers operating outside the formal economy, where irregular employment arrangements and limited awareness of pension schemes continue to pose challenges to wider coverage.
The low penetration means millions of Nigerian workers remain without the retirement savings protection provided by the CPS.
For the pension industry, expanding coverage beyond the existing pool of contributors remains one of its biggest long-term challenges.
The latest registrations also reveal a relatively young demographic entering the pension system.
People below the age of 40 accounted for 75.31% of all new RSA registrations during Q1 2026.
PenCom described the youthful composition as a positive development for the industry, given that younger contributors have longer periods to accumulate savings and benefit from investment returns before retirement.
The commission said the age profile should also influence how pension funds are invested, as contributors with longer investment horizons may have greater capacity to accommodate appropriate levels of investment risk.
The development could therefore have implications not only for pension coverage but also for the long-term growth and investment strategy of Nigeria’s pension industry.
The five largest Pension Fund Administrators (PFAs) accounted for 54.41% of new RSA registrations during the first quarter.
That represents a decline from the 62.11% share recorded by the five largest PFAs in Q4 2025.
PenCom said the lower concentration suggests that competition is increasing across the market, particularly among mid-sized operators seeking to attract new contributors.
The development could encourage PFAs to improve their digital services, customer experience and outreach efforts as they compete for a larger share of the growing contributor base.
The increase in RSA registrations comes as PenCom considers further changes to Nigeria’s pension framework.
In July, the commission disclosed plans to increase statutory pension contribution rates as part of its ongoing review of the Pension Reform Act 2014.
Under the current framework, employers contribute a minimum of 10% of an employee’s monthly emoluments, while employees contribute 8%, bringing the mandatory combined contribution to 18%.
PenCom is seeking to increase the contribution rate as part of the proposed reforms.
The objective is to strengthen retirement savings and potentially improve the adequacy of pension benefits available to contributors when they leave the workforce.
The increase in contributors is occurring alongside continued growth in the value of assets managed by Nigeria’s pension industry.
PenCom’s unaudited industry report showed that total pension assets reached a record N31.32 trillion in May 2026.
The figure represented a monthly increase of approximately N384.98 billion, or 1.23%, from the N30.94 trillion recorded in April.
On a year-on-year basis, pension assets grew by 29.5%, rising from N24.18 trillion in May 2025.
The expanding asset base is increasing the importance of pension funds as a source of long-term capital within Nigeria’s financial system.
The commission is also exploring ways to channel a larger portion of pension industry resources into Nigeria’s infrastructure development.
PenCom has disclosed plans for a new investment vehicle that could help direct part of the industry’s roughly $22 billion in pension assets towards critical infrastructure projects.
If implemented, the initiative could give pension funds greater exposure to long-term infrastructure investments while providing an additional source of financing for projects across the country.
For now, however, expanding pension coverage remains a priority. While more than 143,000 new workers joined the system in the first quarter, the fact that registered contributors represent only about one in eight members of Nigeria’s estimated labour force shows how much room remains for the CPS to grow.
