PenCom moves for 3m additional funded pension accounts - Galaxy Television

The National Pension Commission (PenCom) is targeting three million additional funded active pension accounts within one year, according to Director-General Ms Omolola Oloworaran, who disclosed the plan at the National Pension Commission Conference and Awards in Abuja. She said pension fund administrators had committed to the target and stressed that it refers to funded accounts rather than mere registrations, since active contributions are essential to retirement security.

Oloworaran said pension assets grew from N20.79 trillion in July 2024 to N31.8 trillion at the end of August 2026, which she cited as evidence of the growth of the Contributory Pension Scheme. She argued that the next phase of reform should shift focus from managing assets to protecting more Nigerians, measuring success by the number of people protected rather than assets under management. She identified coverage, adequacy of benefits and employer remittance compliance as the industry's major challenges. For every Nigerian inside the scheme, she said, roughly nine more remain outside it, and she named market traders, artisans, farmers, transport workers and young technology professionals as groups needing greater access. PenCom plans to use personal pension funds, accredited pension agents and digital platforms to reach them.

On adequacy, Oloworaran noted that the pension law prescribes combined contributions of 18 per cent of pay, comprising 10 per cent from employers and eight per cent from workers. She said some private-sector employers use narrow definitions of pensionable earnings, and that almost 70 per cent of private-sector employees retire with pensions below the national minimum wage. She warned employers against deducting contributions without remitting them and pledged to use Pension Reform Act powers to recover outstanding amounts.

Oloworaran also said the commission will require pension fund administrators and custodians to complete recapitalisation by June 30, 2027, and called on operators to deliver returns above inflation. She said President Bola Tinubu would unveil the Pension Security Initiative on November 10, featuring the PenCare healthcare initiative and a minimum pension guarantee. She urged federal and state governments to remit contributions promptly, fund accrued pension rights and ensure all states join the CPS. PenCom Commissioner Bello Malabu, who chaired the conference planning committee, said the value of a pension system should be measured by the security and dignity it provides retirees, not only the assets it manages. The News Agency of Nigeria (NAN) reported the event.