The N10.6trn surge: How PenCom engineers Nigeria’s biggest pension asset boom in 2 years

In the landscape of Nigeria’s financial sector, few milestones match the sheer scale and velocity of the recent expansion within the Contributory Pension Scheme (CPS).

For instance, in a striking 24-month period, total pension assets under management surged by a massive 51 percent, climbing from N20.79 trillion in July 2024 to a staggering N31.48 trillion. This N10.6 trillion growth represents the fastest two-year asset expansion in the country’s pension history, turning the sector into an undeniable pillar of national economic resilience.

Far from a stroke of macroeconomic luck, this historic surge is the direct result of a calculated, reform-driven agenda spearheaded under the leadership of Omolola Oloworaran, Director General, National Pension Commission (PenCom).

By aggressively tackling long-standing legacy bottlenecks, modernising the payout framework, and expanding enrollment by nearly one million new contributors, PenCom has successfully restored vital public trust and bolstered market confidence.

While presenting a scorecard of PenCom achievements at a State House press briefing in Abuja recently, Oloworaran said the reforms implemented under President Bola Tinubu’s administration had transformed retirement security and restored confidence in the country’s pension system.

One of the strongest indicators of the sector’s expansion was the increase in pension contributors. According to PenCom, the number of registered contributors rose from 10.42 million in July 2024 to 11.32 million, with 938,229 new workers joining the Contributory Pension Scheme over the two-year period.

To sustain that momentum, the commission said it will roll out a Personal Pension Plan targeted at Nigeria’s vast informal sector, including artisans, transport workers, market women, cooperatives and fintech-enabled businesses. The initiative is expected to deepen pension penetration among millions of workers currently outside the formal retirement savings system.

PenCom also reported improvements in pension payouts. Aggregate monthly pension payments increased by 22 percent, from N12.2 billion to N14.9 billion, while more than 195,000 pensioners in treasury-funded Ministries, Departments and Agencies benefited from the N32,000 consequential adjustment following the implementation of the new national minimum wage.

The commission said it also carried out the first pension review for retirees under the Nigeria Social Insurance Trust Fund (NSITF) in 21 years. According to PenCom, one retiree’s monthly pension increased from N18,000 to N206,000, while N8.7 billion in arrears was paid to 2,116 pensioners.

Benefit administration also improved during the period. PenCom said the number of retirees receiving pension benefits rose from 658,811 to 819,411, while total benefit payments increased from N2.3 trillion to N3.44 trillion. Pension Fund Administrators (PFAs) have also been directed to process and approve retirement benefit applications within 48 hours, a move the commission said is aimed at reducing delays in accessing retirement savings.

On compliance, the commission disclosed that recoveries of unremitted pension contributions increased to N36.6 billion, supported by mandatory Pension Clearance Certificates, stronger enforcement measures and partnerships with the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC). A Presidential Executive Order is also being developed to further strengthen compliance.

PenCom identified the Federal Government’s N758 billion pension bond as one of the most significant interventions during the review period. According to the commission, the bond settled long-standing pension obligations dating back to 2007, with N387.5 billion allocated for pension increases, N253 billion for accrued pension rights, N107 billion for the Pension Protection Fund and N10 billion for professors’ retirement benefits. In all, 957,045 Nigerians benefited from the intervention.

The commission added that the bond helped reverse accrued pension rights from 21 months in arrears in July 2024 to 41 months in surplus, enabling eligible retirees to receive accrued rights ahead of retirement through the commission’s digital COBRA platform.

PenCom also highlighted its digital transformation programme, which includes PenCap for contribution reconciliation, eHub for online Pension Clearance Certificates, PCRS for digital onboarding and biometric verification, and COBRA for automated processing of accrued rights. The commission said the platforms are designed to improve efficiency and reduce delays across the pension ecosystem.

Looking ahead, PenCom said its next phase of reforms will focus on expanding pension coverage through accredited pension agents, increasing participation in the informal sector and mobilising long-term pension capital into infrastructure, healthcare, education, agriculture and other productive sectors while maintaining competitive returns for contributors.