Nigeria’s pension fund assets have continued on a steady growth trajectory, reaching a record ₦23.33 trillion at the end of the first quarter of 2025—a 19 percent increase year-on-year—according to new data released by the National Pension Commission (PenCom).
An analysis of PenCom’s monthly reports shows consistent gains in pension assets over the first three months of 2025. The fund, which closed at ₦22.51 trillion in December 2024, climbed to ₦22.86 trillion in January, and ₦23.27 trillion in February. By March, it had grown by an additional ₦61.91 billion to reach the ₦23.33 trillion mark.
Despite the positive financial outlook, the number of Retirement Savings Account (RSA) holders remains modest relative to Nigeria’s population. As of March 2025, the total number of RSAs stood at 10,689,846—just under 11 million—reflecting a modest 3.98 percent increase over the previous year.
PenCom Turns Focus to Informal Sector
In a bid to deepen coverage and enhance inclusivity, PenCom is shifting its focus towards Nigeria’s vast informal sector. The sector, estimated to comprise over 77 million workers—such as traders, artisans, and freelancers—remains largely outside the formal pension system.
Speaking at the inaugural Pension Industry Leadership Retreat held recently in Lagos, the Director-General of PenCom, Mrs. Omolola Oloworaran, emphasized the need to bring informal sector workers into the Contributory Pension Scheme (CPS).
“Out of over 77 million informal sector workers in Nigeria, less than 10,000 are active contributors under the Contributory Pension Scheme,” Oloworaran disclosed. “This is a gap we must urgently address. We are now exploring incentives and flexible models that will make pension participation more appealing and accessible to this important segment of our economy.”
The retreat, themed “Sustainable Retirement – Strategic Blueprint for Economic Development and Inclusion,” brought together stakeholders from across government, finance, and labour to strategize on deepening pension participation.
Lending support to the initiative, Lagos State Governor Babajide Sanwo-Olu, represented by the Commissioner for Finance, Abayomi Oluyomi, said any sustainable pension system must include workers in the informal sector.
“Our work is far from complete. Retirement security must extend beyond formal employment to include market traders, artisans, and gig economy workers—those who form the backbone of our economy,” Oluyomi said. “To achieve true economic inclusion, we must develop innovative pension solutions that are accessible, trustworthy, and sustainable for all Nigerians.”
Launch of New Digital Remittance Platform
In a significant technological upgrade, PenCom has also rolled out a new Pension Contribution Remittance System (PCRS), aimed at digitising the pension payment process for employers nationwide. The commission announced that starting June 1, 2025, all pension contributions must be processed through designated Payment Solution Service Providers (PSSPs).
The PCRS is designed to simplify the remittance process for employers, ensuring real-time accuracy and verification of employee details before contributions are processed. The system is completely free for employers and can be accessed remotely.
“Employers can now upload contribution schedules and make payments from the comfort of their homes or offices,” PenCom said in a statement. “The PCRS ensures that employee PINs and Pension Fund Administrators (PFAs) are validated before remittances are accepted, reducing the risks of error and fraud.”
Approved PSSPs under the new scheme include:
Paypen by Netline Limited
Pencentral by Chamsaccess Limited
Pensphere (formerly Paythru) by Pethahiah Rehoboth International Limited
Penremit by Cyberspace Limited
Pensol by Uniswitch Technology Limited
Penco by Gemspay Solutions Limited
Awabah by Awabah Remit Services Limited
Epcoss by Nigeria Inter-Bank Settlement Systems Plc
Interswitch by Interswitch Group
PenCom noted that several forward-looking employers have already adopted the digital remittance platform ahead of the compliance deadline.
Analysts Welcome Growth, Urge More Inclusive Policies
Pension analysts have lauded the growth in the fund size as a sign of increasing confidence in the pension system, but cautioned that real inclusivity will depend on reaching Nigeria’s large unstructured workforce.
“The fund size tells a good story on the surface,” said Joseph Anya, a financial inclusion expert and pension consultant. “But until we start seeing meaningful participation from the informal sector, we cannot say the pension system is truly national in scope. It is encouraging that PenCom is beginning to take that challenge seriously.”
Analysts also emphasized the potential of the PCRS in improving transparency and compliance among employers, particularly small and medium enterprises (SMEs).
“Digital remittance platforms like the PCRS can bridge trust gaps, ensure regulatory compliance, and help employers avoid penalties. This could be a game-changer, especially if well promoted and integrated with informal sector outreach,” said Ada Emezie, a fintech executive and pension technology advocate.
With ₦23.33 trillion in assets and a new digital platform in place, Nigeria’s pension industry is showing signs of maturity and resilience. However, unlocking the next level of growth will depend on how well the system can integrate informal workers, many of whom currently lack any form of social security.
As the regulator pushes for more inclusive policies and deploys new technology tools, all eyes will be on how quickly the number of RSA holders can rise to reflect the country’s broader workforce. For now, while the fund’s value is climbing, inclusion remains the next frontier in Nigeria’s pension evolution.
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