Pension inflows jump 42% to N147.16m as 91.4% of accounts stay dormant

Quarterly contributions into the Personal Pension Plan rose 42.46 per cent to N147.16m in the first quarter of 2026, up from N103.30m in the fourth quarter of 2025. Data from the National Pension Commission’s Q1 2026 report shows the N43.86m increase pushed cumulative contributions under the scheme to N1.66bn since inception.

Active contributors are doing more, but many still drop off

Lagos-based stock market trader and pension analyst Ade Ojapa said the figures show progress and persistent structural problems. “The 42 per cent increase in quarterly inflows demonstrates that active participants are beginning to deposit larger volumes, but the sheer volume of dormant accounts shows that initial onboarding is failing to translate into financial commitment,” Ojapa said.

The PenCom report revealed that 91.4 per cent of registered accounts under the scheme remain dormant. Out of 219,316 total registrations recorded from inception to Q1 2026, only 18,811 accounts, or 8.6 per cent, were funded with active Retirement Savings Accounts. The remaining 200,505 registered accounts have received zero financial contributions.

Informal workers face tough choices

A member of the Pension Fund Operators Association of Nigeria said economic conditions heavily determine compliance among informal workers. “Unlike formal sector employees whose contributions are deducted at source by employers, informal workers must manually transfer funds while managing unpredictable daily incomes,” the official said, requesting anonymity. “When headline inflation squeezes household budgets, voluntary long-term savings are usually the first casualty.”

Launched under the Micro Pension Plan framework, the initiative was designed by PenCom to extend the Contributory Pension Scheme to self-employed individuals and workers in Nigeria’s informal economy. Unlike formal sector employees who benefit from mandatory employer-employee co-contributions under the Pension Reform Act 2014, informal sector contributors participate voluntarily.

To encourage uptake, the plan allows flexible contribution schedules and grants contributors access to 40 per cent of their accumulated funds for contingent withdrawals before retirement. The remaining 60 per cent is locked strictly for retirement benefits.

Digitisation and partnerships seen as the way out

Nigeria’s informal sector accounts for an estimated 80 per cent of the national workforce, making it a critical frontier for pension expansion and financial inclusion. Financial inclusion advocate and economist Dr. Kemi Ojo stressed the need for technology and field-level engagement. “To convert those 200,000 dormant accounts into active income streams, PenCom and PFAs must partner with microfinance institutions and trade unions to automate micro-deductions. Mobile USSD channels and daily micro-contributions are essential if we expect informal earners to build lasting retirement safety nets,” Ojo said.

While the 42.46 per cent quarterly jump in contributions signals encouraging momentum among active depositors, stakeholders emphasise that aggressive sensitisation and digitised collection channels will be crucial to activating the 200,505 idle accounts across the country.