THE NATIONAL Pension Commission (PenCom) says it is targeting three million additional funded active pension accounts within one year to expand retirement security to more Nigerians.
The Director-General of PenCom, Ms Omolola Oloworaran, disclosed this at the National Pension Commission Conference and Awards, where she outlined plans to improve pension coverage, adequacy and compliance in Abuja on Thursday.
Oloworaran also said that President Bola Tinubu would unveil the Pension Security Initiative on November 10, featuring the PenCare healthcare initiative and a minimum pension guarantee.
She said the reforms were aimed at ensuring that Nigerians who worked throughout their productive years retired with dignity and financial security.
According to her, the next phase of pension reform will shift the focus from managing assets to protecting more Nigerians.
She said the success of the pension system should be measured by the number of people it protects rather than the volume of assets under management.
Oloworaran said pension assets grew from N20.79 trillion in July 2024 to N31.8 trillion at the end of August 2026.
She described the increase of about N11 trillion in just more than two years as evidence of the growth of the Contributory Pension Scheme (CPS).
The PenCom boss, however, identified pension coverage, adequacy of benefits and employers’ compliance with remittance obligations as major challenges facing the industry.
“For every Nigerian inside the scheme, roughly nine more are standing outside it. This underscores the need to extend coverage to workers in the informal sector.”
She listed market traders, artisans, farmers, transport workers and young technology professionals among those requiring greater access to retirement savings.
To address the gap, Oloworaran said PenCom would leverage personal pension funds, accredited pension agents and digital platforms to reach workers outside formal employment.
She disclosed that pension fund administrators had committed to opening three million additional funded active accounts within the next year.
She stressed that the target was for funded accounts, not mere registrations, noting that active contributions were essential to building retirement security.
On pension adequacy, Oloworaran said the pension law prescribed combined contributions of 18 per cent of employees’ pay, comprising 10 per cent from employers and eight per cent from workers.
She expressed concern that some private-sector employers calculated contributions using narrow definitions of pensionable earnings, resulting in inadequate retirement benefits for retirees.
According to her, almost 70 per cent of private-sector employees retire with pensions below the national minimum wage.
She added that more than 55 per cent of retirees receiving pensions below the minimum wage came from the private sector.
Oloworaran urged employers to calculate pension contributions fairly and support the Pension Protection Fund to strengthen the proposed minimum pension guarantee.
She also called on pension operators to deliver returns above inflation, noting that investment performance directly affected retirees’ purchasing power.
The PenCom director-general warned employers against deducting workers’ pension contributions without remitting them, describing the practice as an offence against their future financial security.
She pledged to use the powers provided by the Pension Reform Act to recover outstanding contributions owed to workers.
Oloworaran further said the commission would require pension fund administrators and custodians to complete their recapitalisation by June 30, 2027.
She said the exercise would strengthen the industry’s capacity to safeguard pension assets and improve investment discipline.
The director-general noted that Nigeria’s pension assets remained relatively small compared with the size of its economy, indicating considerable room for growth.
She cited Australia’s retirement savings system as an example of how consistent contributions could generate substantial long-term capital.
She also referenced Chile’s pension reforms, stressing that retirement savings must provide adequate benefits to sustain public confidence in the system.
Oloworaran said pension funds could support infrastructure, housing, power and enterprise development, provided investments remained prudent, transparent and focused on contributors’ interests.
“Pension money is not government money; it is the deferred wages of Nigerian workers,” she said.
She urged federal and state governments to remit pension contributions promptly, fund accrued pension rights and ensure that all states joined the CPS.
She also called on organised labour, employers, pension operators and development partners to support efforts to expand pension coverage and improve retirees’ welfare.
Earlier, PenCom Commissioner, Mr Bello Malabu, said regulators, employers, pension operators and development partners had important roles to play in building an inclusive and sustainable pension system.
Malabu, who is also the chairman of the conference planning committee, commended Oloworaran, the commission’s management and staff, as well as industry stakeholders for supporting the event.
He acknowledged the contributions of the Pension Industry Leadership Council, the Pension Fund Operators Association of Nigeria and other development partners.
Malabu said the value of a pension system should be measured not only by the assets it manages but also by the financial security, dignity and confidence it provides to retirees.
The News Agency of Nigeria (NAN) reports that the conference and awards were organised as part of efforts to strengthen collaboration and advance pension coverage and retirement security in Nigeria. (NAN)
