Pension Contributions Rise 42% in Q1 2026 Amid Dormancy

In the first quarter of 2026, contributions to the Personal Pension Plan surged by 42.46% to N147.16 million, up from N103.30 million in the previous quarter, according to the National Pension Commission’s Q1 2026 report. This increase resulted in cumulative contributions of N1.66 billion since the scheme's inception.

Despite this growth, 91.4% of the registered accounts remain dormant, with only 18,811 of the 219,316 total registrations being funded. Lagos-based stock market trader and pension analyst Ade Ojapa noted that while active participants are depositing larger amounts, the high number of inactive accounts indicates challenges in converting initial registrations into ongoing contributions.

The Micro Pension Plan, designed to extend pension coverage to self-employed individuals and informal sector workers, allows flexible contributions and early access to funds. Dr. Kemi Ojo emphasized the importance of technological integration and engagement to improve participation in the pension scheme, which is crucial given that the informal sector represents 80% of Nigeria's workforce.