Nigeria’s efforts to expand pension coverage among workers in the informal sector continue to face significant challenges, with new data showing that the majority of registered personal pension accounts remain inactive despite years of enrollment campaigns.
According to the National Pension Commission (PenCom), the Personal Pension Plan (PPP), established to bring self-employed individuals, artisans, traders, gig workers and other informal sector participants into the pension system, has recorded low contribution activity despite growing registration numbers.
PenCom disclosed in its Fourth Quarter 2025 report that the Personal Pension Plan currently has 215,412 registered Retirement Savings Accounts (RSAs). However, only 17,320 of those accounts have received pension contributions.
The commission noted that the remaining 198,092 accounts are dormant, representing approximately 92 percent of all registered personal pension accounts under the scheme. The figures indicate that while awareness and registration efforts have attracted thousands of participants, actual pension savings activity remains significantly below expectations.
Concerned about the trend, PenCom emphasized that registration alone should not be viewed as a measure of success. The commission warned that increasing enrollment figures without corresponding contributions creates a misleading impression of financial inclusion within the pension sector.
To address the challenge, PenCom announced plans to intensify engagement with informal sector workers through several initiatives aimed at converting registrations into active pension savings. According to the commission, priority actions will include accelerating onboarding activities under the Accredited Pension Agent framework and activating accredited agents across the country.
PenCom also plans to strengthen partnerships with cooperatives, financial technology companies, telecommunications operators, trade unions and professional associations to improve access to pension products. In addition, sustained awareness campaigns will target micro, small and medium enterprises, self-employed professionals, freelancers and gig economy workers to encourage consistent funding of personal pension accounts.
Beyond the informal sector, PenCom also highlighted slow progress in the adoption of the Contributory Pension Scheme (CPS) by state governments. According to the commission, implementation remains uneven across the federation despite years of pension reform advocacy. The report showed that only eight states are fully compliant with the CPS framework. Another 17 states have enacted pension reform laws but have yet to fully implement the system.
PenCom stated that these states will become the focus of intensified compliance engagements aimed at moving them from legislation to full execution. The commission also noted that Jigawa State operates a fully implemented Contributory Defined Benefits Scheme.
Meanwhile, Kano State, despite making progress through enabling legislation, remains outside the established regulatory structure. PenCom explained that pension funds in Kano are still held by commercial banks instead of licensed Pension Fund Administrators as required under the regulatory framework.
Speaking on the commission’s objectives, PenCom Director-General, Omolola Oloworaran, said the commission remains committed to strengthening the long-term sustainability of the pension industry. According to her, the focus is on building a resilient and efficient pension market capable of serving contributors across all sectors of the economy.
“Our objective is clear, to build a market that works efficiently and sustainably for all pension contributors,” she stated.
The latest figures underscore the challenge facing regulators as they seek to transform registered personal pension accounts into active retirement savings vehicles capable of improving financial security for millions of Nigerians working outside the formal employment sector.
