Nigeria pension system sees surge in young contributors

Nigeria’s pension system is seeing a significant demographic shift, with younger workers driving the growth of the Contributory Pension Scheme (CPS). Data from the National Pension Commission (PenCom) for the first quarter of 2026 indicates that 75.31 percent of new Retirement Savings Accounts (RSAs) were opened by Nigerians under the age of 40. Specifically, those under 30 accounted for nearly 40 percent of new registrations, while the 30 to 39 age group made up approximately 35 percent.

PenCom Director-General Omolola Oloworaran noted that this youthful age profile provides a long-term investment horizon, potentially offering ‘patient capital’ for infrastructure and housing. Oloworaran suggested that investment policies may need to shift away from the current 58.07 percent allocation to Federal Government securities to better utilize this long-term capacity.

However, the system faces criticism regarding the treatment of existing retirees. Reports highlight significant delays in pension payments and entitlements for long-serving workers, leading to financial hardship. Critics have pointed to a disparity between the benefits received by political elites and the struggles faced by ordinary public servants who encounter unpaid entitlements and repeated verification exercises.