Nigeria pension system growth and demographic shifts

The National Pension Commission (PenCom) reported growth in Nigeria’s Contributory Pension Scheme during the first quarter of 2026. Cumulative Retirement Savings Account (RSA) registrations rose to 11,183,475, an increase of 143,248 from the end of 2025. While headline financial contributions appeared lower than the previous quarter due to one-off transfers from the Federation Account, underlying contributions grew by 38.2 percent when excluding those exceptional payments.

Recent data indicates a demographic shift within the system, with younger workers driving new registrations. Approximately 75.31 percent of new RSAs were opened by Nigerians under the age of 40. PenCom Director-General Omolola Oloworaran noted that this youthful profile could provide ‘patient capital’ for long-term investments like infrastructure, suggesting a potential need to shift investment policies away from the current heavy allocation to Federal Government securities.

Despite this growth, the system faces criticism regarding the treatment of current retirees. Reports have highlighted significant delays in pension payments and entitlements for long-serving workers, creating financial hardship and a perceived disparity between the benefits of political elites and ordinary public servants.