Nigeria’s efforts to expand pension coverage among informal sector workers continue to face challenges, as more than 92 percent of registered Personal Pension Plan accounts remain unfunded. New data from the National Pension Commission (PenCom) shows that while registration numbers have grown, actual participation through regular contributions remains significantly low.
The Personal Pension Plan (PPP) was introduced to extend pension coverage to self-employed individuals, informal sector operators, gig workers, artisans, traders and small business owners who are not covered by the formal Contributory Pension Scheme. However, PenCom’s Fourth Quarter 2025 report indicates that growth in registrations has not translated into active savings, raising concerns about the effectiveness of current inclusion efforts.
According to the report, the PPP recorded 215,412 registered Retirement Savings Accounts (RSAs) as of the end of 2025. However, only 17,320 accounts had received pension contributions. This means that just 8 percent of registered Personal Pension Plan accounts are actively funded, while 198,092 accounts, representing 92 percent, remain dormant.
PenCom cautioned that registration figures alone do not reflect genuine pension inclusion. The commission noted that creating accounts without consistent contributions presents a misleading picture of progress in expanding pension participation across the informal sector.
To address the gap, PenCom announced plans to intensify engagement through its Accredited Pension Agent framework. The commission also plans to strengthen partnerships with cooperatives, fintech companies, telecommunications firms, trade unions and professional associations. In addition, sustained awareness campaigns will target informal sector workers, micro, small and medium-sized enterprises, freelancers and self-employed Nigerians to encourage active participation in the scheme.
Beyond the performance of Personal Pension Plan accounts, PenCom highlighted slow progress in the adoption of the Contributory Pension Scheme by state governments. The commission disclosed that only eight states are fully compliant with the scheme. Seventeen other states have enacted pension reform laws but are yet to implement them.
PenCom also noted that Jigawa State operates a fully implemented Contributory Defined Benefits Scheme, while Kano State remains outside the approved regulatory framework despite making legislative progress. According to the commission, pension funds in Kano are still held by commercial banks instead of licensed Pension Fund Administrators.
Industry stakeholders believe stronger participation in Personal Pension Plan accounts could improve financial security for millions of Nigerians working outside the formal employment sector. A wider adoption of pension savings among informal workers would also deepen long-term investment funds available for national economic development.
Speaking on the commission’s broader objectives, Omolola Oloworaran reaffirmed PenCom’s commitment to building a sustainable and efficient pension system. “Our objective is clear, to build a market that works efficiently and sustainably for all pension contributors,” she said.
As PenCom intensifies outreach and distribution efforts, the commission faces the task of converting registrations into active contributions and ensuring that more Personal Pension Plan accounts become functional savings vehicles for Nigeria’s growing informal workforce.
