Pension contributions under Nigeria’s Contributory Pension Scheme declined by 38 per cent in the first quarter of 2026, according to data released by the National Pension Commission.
The latest Nigerian Pension Industry Quarterly Report showed that total pension contributions fell to N559.4 billion in Q1 2026, compared with N903.7 billion recorded in the fourth quarter of 2025.
The decline comes after an exceptionally strong final quarter in 2025 and reflects a slowdown in pension remittances during the first three months of the year.
According to PenCom data, the public sector contributed 50.9 per cent of total pension remittances during the quarter, while the private sector accounted for the remaining 49.1 per cent.
Although the report did not provide specific reasons for the decline, the Commission described the level of contributions as healthy despite the sharp quarter-on-quarter drop.
“The pension industry opened 2026 on the front foot. Net assets crossed N29 trillion, contributions of N559.42 billion were healthy in the wake of an exceptional Q4, and benefit administration continued to discharge every category of claim on time.”
The report highlighted ongoing enforcement efforts, revealing that PenCom recovered N1.18 billion from 15 defaulting employers during the quarter.
The recovered amount comprised N450 million in outstanding pension contributions and N729 million in penalties.
PenCom also disclosed that it had intensified enforcement actions by engaging the Independent Corrupt Practices and Other Related Offences Commission (ICPC) on unresolved compliance cases, with six employers already interrogated.
The Commission issued 12,185 electronic Pension Clearance Certificates (PCCs) during the quarter, covering N212.63 billion in pension remittances for 199,481 employees.
According to the report, this represents roughly two-and-a-half times the volume of certificates issued in the preceding quarter.
The Federal Government also paid N11.19 billion in accrued pension rights to 4,592 retirees and deceased contributors, while PenCom continued to automate pension processing through its Contribution and Bond Redemption Application platform.
The report showed growing adoption of the pension-backed mortgage framework.
A total of 28,437 contributors accessed N92.7 billion from their Retirement Savings Accounts (RSAs) to finance residential mortgages under Section 89(2) of the Pension Reform Act.
PenCom described the development as the strongest indication yet that the initiative is gaining widespread acceptance among contributors.
The sharp drop in contributions followed a record fourth quarter in 2025, when total pension remittances reached N903.7 billion.
Public sector contributions accounted for N550.96 billion during the period, representing a 234.85 per cent increase, while private sector remittances stood at N352.74 billion.
PenCom also recovered N387.79 million from 16 defaulting employers in Q4 2025, bringing cumulative recoveries since 2012 to N32.75 billion.
The report comes amid ongoing discussions around proposed amendments to the Pension Reform Act (PRA) 2014.
PenCom is seeking an increase in employers’ statutory pension contribution rates as part of the review process.
Under the current framework, employers contribute a minimum of 10 per cent of employees’ monthly emoluments, while employees contribute 8 per cent, resulting in a combined contribution rate of 18 per cent.
However, the Organised Private Sector of Nigeria (OPSN) has opposed the proposal, arguing that higher employer contributions could place additional pressure on businesses already facing challenging economic conditions.
