PenCom gives PFAs one year to open 3 million funded pension accounts

The National Pension Commission (PenCom) has directed Pension Fund Administrators (PFAs) and other industry stakeholders to open three million additional funded Retirement Savings Accounts (RSAs) within one year. PenCom Director-General Omolola Oloworaran announced the target on Thursday, October 29, 2026, at the National Pension Conference and Awards in Abuja, held as part of National Pension Week 2026.

She said the push is meant to expand pension coverage, especially among Nigerians working outside formal employment. The target is three million genuinely funded accounts, not mere registrations. "An empty account is a statistic, but a funded account is a future," Oloworaran said, adding that PFA owners have already committed to the target.

Informal workers in focus

Oloworaran outlined five strategic reforms for the pension industry over the next decade. The first shifts coverage from payroll-based participation to broader population inclusion. PenCom will target traders, farmers, transport operators and other informal workers through the Personal Pension Plan (PPP) and accredited pension agents.

The second reform focuses on retirement security and protecting Nigerians from financial hardship in old age. President Bola Tinubu is due to launch the Pension Security Initiative in November 2026. PenCom also promised tougher enforcement against employers defaulting on pension obligations. It will deploy its statutory powers under the Pension Reform Act to recover outstanding contributions owed to workers.

Recapitalisation deadline stays

Another reform covers the financial capacity of pension operators. Oloworaran reiterated that all pension fund administrators and custodians must complete recapitalisation by June 30, 2027. She also advocated responsible pension investments in infrastructure, housing, electricity and productive enterprises, while stressing that pension assets remain workers' deferred earnings and must be protected.

President Tinubu, represented by Secretary to the Government of the Federation George Akume, urged pension operators to prioritise accountability, regulatory compliance and prudent investment decisions. He warned against reckless investments that could jeopardise contributors' retirement savings. Awabah CEO Tunji Andrews urged accredited pension agents to intensify public awareness campaigns and expand pension participation.

Competition among PFAs

Industry data showed that five leading PFAs accounted for 54.41% of new RSA registrations in the first quarter of 2026. Stanbic IBTC Pension Managers led with 25,024 registrations, representing 17.47%. AccessARM, FCMB Pensions, TangerineAPT and Trustfund Pensions followed.

Nigeria's pension assets have climbed to ₦31.48 trillion. PenCom says its reforms are delivering higher monthly payments, clearing outstanding benefits and shortening the wait for retirement income. For workers approaching retirement and pensioners struggling with living costs, the changes promise relief from inadequate payments and uncertainty over when benefits will arrive.