Public sector pension remittances recorded a significant increase of 234.85 per cent, rising to N550.96 billion in the fourth quarter of 2025, according to the Q4 2025 Quarterly Industry Report released by the National Pension Commission.
The report revealed that total pension contributions for the quarter stood at N903.7 billion, while the private sector contributed N352.74 billion during the same period.
According to the report, the sharp increase in public sector remittances was driven by improved compliance with pension regulations and the settlement of outstanding pension arrears by public sector organisations.
The development reflects growing adherence to Nigeria’s Contributory Pension Scheme (CPS) and indicates a strengthening culture of pension contribution discipline across both the public and private sectors.
PenCom’s report further showed that the industry continued to record strong asset accumulation, with Net Asset Value (NAV) increasing to N27.45 trillion in December 2025 from N26.09 trillion in September 2025. This represented an increase of N1.36 trillion, largely attributed to equity revaluation rather than fresh contributions.
“Contribution discipline is improving. Public sector remittances rose by 234.85% on the back of pension increases and the settlement of arrears; private sector remittances grew by 4.16%,” the report noted.
The report also disclosed that the Federal Government continued to meet its legacy pension obligations, paying N30.06 billion in accrued rights to 8,770 retirees and deceased contributors.
As part of ongoing compliance enforcement efforts, PenCom recovered N387.79 million from 16 defaulting employers during the fourth quarter. This brought the cumulative amount recovered since 2012 to N32.75 billion, underscoring the effectiveness of enforcement measures within the pension industry.
The data indicated that sustained compliance monitoring and the settlement of pension arrears have continued to produce measurable results, contributing significantly to the expansion of pension assets.
Digital compliance initiatives also gained momentum during the quarter, with 4,560 electronic Pension Clearance Certificates (ePCCs) issued. The certificates covered pension remittances worth N23.62 billion for 61,891 employees.
The report revealed that 114,864 new Retirement Savings Accounts (RSAs) were opened during the quarter, bringing the total number of RSAs to 11,042,903. It also showed that 74 per cent of contributors were below the age of 40.
Despite the positive performance, PenCom identified two major structural challenges facing the industry. The commission noted that real returns across all RSA funds remained below inflation over a 36-month period, while 92 per cent of registered Personal Pension Plan (PPP) accounts remained dormant without any contributions during the quarter.
The report further highlighted disparities in compliance across states, noting that only eight of the 36 states and the Federal Capital Territory were fully compliant with the Contributory Pension Scheme.
Industry concentration also remained evident, as the top five Pension Fund Administrators (PFAs) accounted for 62.11 per cent of all new RSAs registered during the period, while the top two PFAs alone were responsible for 39.71 per cent of new registrations.
AccessARM Pensions emerged as the leading operator in Personal Pension Plan registrations, accounting for 52.53 per cent of cumulative accounts. However, only 16.36 per cent of legacy RSAs were recaptured, suggesting uneven progress among operators in that segment.
Meanwhile, Nigeria’s total pension assets rose to N29.43 trillion in February 2026, representing a month-on-month increase of N1.39 trillion, the highest growth recorded since the introduction of the Contributory Pension Scheme more than two decades ago.
The latest figure surpassed the previous record monthly increase of N1.18 trillion recorded in January 2024.
The growth in pension assets was attributed to fresh pension contributions, stronger public sector remittances and valuation gains across Retirement Savings Account funds.
PenCom’s data underscores the continued expansion of Nigeria’s pension industry and highlights the importance of stronger compliance, increased digital adoption and targeted policy interventions aimed at delivering real returns for pension contributors.
