Nigeria's Pension Accounts Surge, Active Savings Lag Behind

As of the end of the first quarter of 2026, Nigeria has registered 219,316 Retirement Savings Accounts under the Personal Pension Plan, aimed at including self-employed and informal sector workers in the contributory pension system. Despite this growth in registered accounts, only 18,811 accounts, or 8.58 percent, received contributions, leaving 200,505 accounts unfunded.

This disparity highlights a critical issue where registration does not equate to active savings. The Personal Pension Plan allows participants to contribute independently, unlike traditional payroll deductions for formal workers.

In Q1 2026, contributions rose to N147.16 million from N103.30 million in Q4 2025, marking a 42.46 percent increase, yet the total remains low compared to the number of registered accounts. Cumulative contributions reached N1.66 billion by March 2026.

Additionally, 15 contributors accessed N11.12 million through the contingent withdrawal window during the same period.