The National Pension Commission (PenCom) says it will not meet its Personal Pension Plan (PPP) target of 30% funded accounts by Q4 2026, citing a persistent funding gap and weak savings culture. According to the latest Nigerian Pension Industry Quarterly Report, only 18,811 of the 219,316 PPP accounts registered under the scheme have received contributions, translating to a funding ratio of just 8.5%. The development means that more than nine out of every 10 PPP accounts remain inactive despite growing enrollment numbers. What they are saying
PenCom acknowledged that the industry has focused more on account registrations than actual savings mobilisation, warning that the current trend threatens the scheme’s long-term objectives.
“Of the 219,316 accounts registered under the PPP, only 18,811 are funded. The industry has spent a full year measuring inclusion in registrations rather than savings, and the pattern is now entrenched.”
“Absent a decisive change in operator conduct and product design, the Q4 2026 funded ratio target of 30% will not be achieved.”
The Commission stressed that future assessments of pension inclusion should be based on funded accounts rather than registration figures alone. Funding gap remains a major challenge
The report showed that 91% of PPP accounts remain unfunded, highlighting a significant disconnect between enrollment and active participation. According to PenCom, total quarterly contributions under the PPP stood at N147.16 million, while cumulative inflows since the scheme’s inception have reached N1.66 billion.
The Commission noted that the true measure of success for the scheme will be the proportion of contributors actively saving rather than the number of accounts opened. It added that to reset the PPP playbook, the Commission will publish funding-conversion targets at PFO level, activate the Accredited Pension Agent network at scale, and deepen distribution partnerships with cooperatives, fintechs, telecommunications operators, trade unions and professional associations to move the informal sector from registration to sustained contribution.
Competition intensifies among pension fund administrators
Among Pension Fund Administrators (PFAs), the top five operators accounted for 54.41% of new Retirement Savings Account (RSA) registrations in the first quarter of 2026, down from 62.11% in the previous quarter. Stanbic IBTC Pension Managers led the industry with 25,024 new RSA registrations, representing 17.47% of the total. Other leading operators included:
AccessARM Pensions – 10.63%
FCMB Pensions – 10.15%
TangerineAPT Pensions – 9.65%
Trustfund Pensions – 6.73%
PenCom noted that TangerineAPT’s emergence among the top five operators signals increasing competition within the sector.
RSA registrations continue to grow
Despite concerns over PPP funding, overall RSA enrollment maintained a strong growth trajectory. Cumulative RSA registrations increased from 11.04 million at the end of Q4 2025 to 11.18 million by the end of Q1 2026, driven by 143,248 new accounts opened during the quarter. The figure exceeded the 114,864 accounts opened in the previous quarter, reflecting improvements in digital onboarding and sustained public awareness campaigns. PenCom estimated that active pension contributors currently represent about 12.1% of Nigeria’s 92 million labour force, leaving significant growth opportunities, particularly within the informal sector. Young Nigerians drive pension growth
The report revealed that 75.31% of all new RSAs opened during the quarter belonged to Nigerians below the age of 40. PenCom described the youthful contributor base as one of the pension industry’s greatest strengths.
“This remains the single most important long-term asset of the system: a young, expanding contributor base whose retirement horizon extends beyond 2055.”
The Commission argued that the demographic profile supports a stronger allocation to growth-oriented investments rather than the current heavy concentration in Federal Government securities. The report also showed that 15 Personal Pension Contributors accessed N11.12 million through the contingent withdrawal window during the quarter. Get up to speed
The latest findings come after PenCom reported that 92% of PPP accounts were unfunded in the fourth quarter of 2025, indicating only marginal improvement in account funding levels. During that quarter, AccessARM Pensions led PPP registrations with 52.53% of cumulative accounts, though only 16.36% of legacy RSAs were recaptured, indicating uneven progress across operators. However, the report showed that total Q4 2025 pension contributions reached N903.7 billion, with the private sector contributing N352.74 billion during the same period.
Public sector pension remittances rose sharply by 234.85%, reaching N550.96 billion in the fourth quarter of 2025. The surge reflected both improved compliance and the settlement of outstanding arrears across public sector organizations. What you should know
The report also comes amid ongoing efforts to amend the Pension Reform Act (PRA) 2014, including proposals to increase employers’ statutory pension contribution rates. Under the current framework, employers contribute a minimum of 10% of employees’ monthly emoluments, while employees contribute 8%, bringing total mandatory pension contributions to 18%
However, the Organised Private Sector of Nigeria (OPSN) has opposed the proposed increase, warning that additional pension obligations could raise operating costs for businesses.
