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Projects three years for informal sector pension growth, tightens investment safeguards
President Bola Tinubu’s pension reforms have restored confidence in Nigeria’s retirement system, with the National Pension Commission (PenCom) saying pension assets rose to ₦31.48 trillion and more than 938,000 new contributors joined the scheme in two years.
At the Meet the Press briefing organised by the Presidential Media Team at the State House on Tuesday, PenCom Director-General Omolola Oloworaran said the administration’s interventions have transformed pension reform into “an instrument of justice, an instrument of dignity, an instrument of economic opportunity.”
She said the government’s reforms have put more money in retirees’ pockets, resolved long-standing liabilities, and strengthened the Contributory Pension Scheme. Among the key measures, she listed the ₦758 billion pension bond, the pension boost that raised monthly payouts, and a ₦32,000 consequential adjustment for eligible retirees of treasury-funded MDAs.
Oloworaran also said the first review of NSITF pensions in 21 years lifted some pensioners’ monthly payments from ₦18,000 to ₦206,000, with arrears fully paid.
“The dignity of work must be matched by dignity in retirement,” she said, adding that the administration’s record has made the case for President Tinubu as a pro-worker, pro-retiree leader “on the record.”
According to her, pension assets increased from ₦20.79 trillion to ₦31.48 trillion within 24 months, a rise of more than ₦10.7 trillion. She said 938,229 new contributors joined the scheme during the period, widening retirement security across the country.
She also said monthly pension payouts under Pension Boost 1.0 rose by 22 per cent, from ₦12.2 billion to ₦14.9 billion, while the new minimum wage adjustment ensured retirees were not left behind.
Oloworaran described the ₦758 billion Federal Government pension bond as one of the most consequential interventions in Nigeria’s pension history, saying it settled obligations dating back to 2007 and covered 957,045 Nigerians.
She added that accrued pension rights had moved from 21 months in arrears to a 41-month surplus, calling it a “complete reversal.”
Looking ahead, she said PenCom would roll out the Minimum Pension Guarantee and PenCare — a healthcare support scheme for vulnerable retirees — within the next three months. She also announced plans for a Personal Pension Plan for informal workers and a pension agent network to deepen access nationwide.
“The most patient capital in Nigeria should work for Nigeria,” she said, noting that the commission is also exploring investment frameworks that can channel pension funds into roads, ports, power, healthcare, education, and agriculture.
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Oloworaran also assured Nigerians that they should begin to see tangible results from efforts to expand pension coverage to informal workers within the next two to three years, even as the commission continues to build the digital and regulatory foundations needed to reach millions outside the formal system.
The PenCom Director-General gave the timeline while responding to questions after her presentation at the State House briefing in Abuja, where she said the commission is prioritising simplified onboarding, digitised processes and licensed pension agents to extend retirement savings access to market women, artisans, transport workers and other informal sector participants.
“We are still working on the foundation, the building blocks that can expand that area,” she said, adding that the current phase is focused on infrastructure that will make pensions more accessible across the country.
According to her, three accredited pension agents have already been licensed, while four more are undergoing approval. She said the commission expects to begin seeing results from the new push “within the next two, three years,” though she stressed that 2026 is mainly for laying the groundwork.
Oloworaran also addressed concerns about the safety of pension assets as regulators look to channel more long-term funds into the capital market and infrastructure. She said PenCom’s investment rules remain strict, with clear asset classes, credit rating requirements and profitability thresholds guiding where pension funds can be placed.
She explained that Pension Fund Administrators are expected to comply with those rules, while PenCom carries out continuous examinations and spot checks to ensure they do not take undue risks with contributors’ money.
“The investment regulation is carefully reviewed and has specified the kind of assets that pension funds can invest in,” she said, adding that oversight is designed to protect the savings of working Nigerians.
The PenCom boss was also pressed on the continued protests by the Nigeria Police Force to be excluded from the Contributory Pension Scheme because it is not favourable to them, and complaints from retirees who are still owed benefits after years of service.
However, her responses focused largely on the commission’s broader reform agenda, compliance measures, and plans to widen access to the pension system.
She said the long-term objective is to create a pension structure that is not only safer and more inclusive but also capable of supporting national development through disciplined investment and broader coverage.
