By David Akinmola
The National Pension Commission (PenCom) registered 143,248 new Retirement Savings Accounts (RSAs) in the first quarter of 2026, reflecting continued expansion of Nigeria’s contributory pension scheme despite the persistent gap in pension coverage.
The latest registration brings renewed attention to the challenge of extending formal pension protection to millions of Nigerian workers who remain outside the Contributory Pension Scheme (CPS), particularly those in the informal sector.
According to PenCom’s latest quarterly report, the new registrations represent workers who entered the formal pension system during the period, providing them with access to structured retirement savings and long-term financial security.
The development is significant as Nigeria’s working population continues to expand, while a large proportion of economic activity remains concentrated in the informal sector, where pension participation is considerably lower.
PenCom has in recent years intensified efforts to broaden pension coverage through the Micro Pension Plan and other initiatives targeted at self-employed workers and informal-sector operators.
The commission’s drive to expand coverage is also taking place against the backdrop of growing pension assets and increased contributions under the CPS. The expansion of registered contributors provides pension fund operators with a broader pool of long-term savings that can be invested in productive assets.
Industry stakeholders, however, say the growth in RSA registrations should not obscure the wider coverage challenge.
Millions of artisans, traders, farmers, transport workers, small-business owners and other self-employed Nigerians still lack structured retirement savings, leaving many vulnerable to financial hardship after leaving the workforce.
For the pension industry, expanding coverage therefore remains as important as growing pension assets.
The Micro Pension Plan offers one avenue for addressing the gap by allowing self-employed and informal-sector workers to make flexible contributions based on their income and capacity.
PenCom has also continued to promote financial literacy and awareness, recognising that inadequate knowledge about pensions remains a barrier to participation among workers outside the formal employment structure.
The registration of 143,248 new RSAs in the first quarter nonetheless suggests that the formal pension market continues to attract new participants, even as the commission seeks to deepen participation across different segments of the economy.
Beyond registration, industry experts say the sustainability of the pension system will depend on regular contributions, improved compliance by employers, stronger enforcement and greater confidence among workers that their retirement savings are secure.
PenCom has continued to strengthen compliance measures against employers who fail to remit pension contributions, while also pursuing recovery of outstanding contributions and penalties.
The commission’s broader objective is to ensure that the CPS evolves from a scheme largely associated with formal employment into a more inclusive retirement savings system capable of covering a larger proportion of Nigeria’s workforce.
As the pension industry continues to grow, the latest RSA registrations highlight both the progress being made and the scale of the task ahead.
For millions of Nigerians still outside the pension net, the real measure of the industry’s expansion will be whether the system can make retirement savings accessible, affordable and attractive enough to bring informal-sector workers into the fold.
