Follow Us on Google
Targets 3m funded pension accounts in one year
_____________________________________________________________________
From Adanna Nnamani and Francis Onyedikachukwu, Abuja
The National Pension Commission (PenCom) has insisted that it will not reconsider the 30 June 2027 deadline set for pension fund administrators (PFAs) and pension fund custodians (PFCs) to complete their recapitalisation.
The Director-General of PenCom, Omolola Oloworaran, stated this on Thursday at the inaugural National Pension Summit in Abuja, held as part of the National Pension Week.
Oloworaran, who outlined the next phase of reforms in the contributory pension industry, stressed that operators must strengthen their financial capacity to protect workers’ retirement savings.
The DG said the commission would hold pension operators to higher standards of investment discipline, performance and accountability, adding that the recapitalisation exercise was necessary to build stronger institutions capable of safeguarding contributors’ funds.
“We are not changing our minds,” she said, insisting that the industry must move beyond the growth in pension assets to building institutions strong enough to protect the retirement savings of millions of Nigerian workers.
“Size is what we have achieved. Strength is what we now demand,” the PenCom boss added.
She explained that the recapitalisation exercise formed part of broader reforms aimed at ensuring prudent management of pension funds and generating returns capable of protecting contributors against the effects of inflation.
Beyond strengthening pension operators, Oloworaran said the commission was determined to expand pension coverage, improve retirement benefits and strengthen compliance across the country.
As part of the expansion drive, she disclosed that PenCom had secured a commitment from pension fund administrators to open three million additional funded and active pension accounts within one year.
She emphasised that the target went beyond registering new contributors, noting that the accounts must receive actual contributions to provide meaningful retirement security.
“Not registrations, three million funded active accounts, new accounts, because an empty account is a statistic, but a funded account is a future,” she said.
According to her, the initiative would be supported by the Personal Pension Plan, accredited pension agents and digital onboarding platforms designed to make participation in the contributory pension scheme easier for Nigerians outside the formal payroll system.
She identified traders, artisans, farmers, commercial transport operators and other informal-sector workers as key targets of the expansion programme.
The PenCom DG noted that the country still had a significant pension coverage gap, with roughly nine Nigerians outside the scheme for every one covered.
She warned that the gap could leave millions of Nigerians without adequate financial support in old age if concerted efforts were not made to expand participation.
Oloworaran also announced that President Bola Tinubu was expected to launch a pension security initiative on 10 November 2026, subject to the programme proceeding as scheduled.
Other News
The initiative is expected to include PenCare, a pension-related healthcare programme, and a minimum pension guarantee designed to provide financial protection for vulnerable retirees.
She said the minimum pension guarantee, provided for under Sections 82 and 84 of the Pension Reform Act 2014, should no longer remain an unfulfilled promise.
According to her, the initiative is intended to ease the hardship faced by retirees struggling with rising living costs and inadequate pension payments.
She stressed that retirees who had spent their productive years serving the country should not have to choose between buying medicines and meeting their basic food needs.
The PenCom chief also raised concerns over the adequacy of pension benefits, particularly among private-sector workers, disclosing that almost 70 per cent of them retire on pensions below the national minimum wage.
She added that more than 55 per cent of all retirees receiving pensions below the minimum wage came from the private sector.
Oloworaran attributed part of the problem to the practice of calculating pension contributions on a narrow definition of pensionable earnings rather than a worker’s full earnings.
She explained that the combined statutory contribution rate under the pension framework was 18 per cent of pensionable pay, comprising 10 per cent from employers and eight per cent from employees.
She urged private-sector employers to adopt a more realistic earnings base for pension contributions and to support the pension protection fund to improve workers’ retirement security.
The PenCom boss also warned employers against deducting pension contributions from workers’ salaries without remitting the funds to the appropriate accounts.
She said the commission would deploy its statutory powers to recover outstanding contributions and hold defaulting employers accountable.
On the performance of the industry, Oloworaran disclosed that pension assets grew from N20.79 trillion in July 2024 to N31.8 trillion at the end of August 2026, representing an increase of about N11 trillion in just over two years.
She, however, stressed that the growth in assets must translate into improved retirement security, noting that the industry’s success should be measured not only by the value of funds under management but also by the number of Nigerians covered and the adequacy of their benefits.
The commission also plans to strengthen the pension protection fund, improve compliance by employers and state governments, and encourage more states to join the contributory pension scheme.
Oloworaran said pension funds could support national development by financing infrastructure, housing, power and enterprises, provided investments were made prudently and in the best interests of contributors.
She maintained that pension assets belonged to workers and must not be treated as government funds, stressing that the safety and returns of contributors’ savings must remain the priority in every investment decision.
She called on governments, employers, labour unions and pension industry operators to support the reforms and work towards building a more inclusive and sustainable pension system.
