The National Pension Commission (PenCom) has given reasons why it may not be able to hit its Personal Pension Plan (PPP) target of achieving a 30% funded account ratio by the fourth quarter of 2026.
The commission cited widespread funding deficits and an entrenched gap between registration and active contributions.
According to the latest Nigerian Pension Industry Quarterly Report, only 18,811 out of the 219,316 registered PPP accounts have received deposits, leaving the scheme with a funding ratio of just 8.5%.
This indicates that over nine out of every ten accounts remain dormant despite growing onboarding numbers.
PenCom stated that the industry has spent the past year prioritizing registration metrics over actual savings mobilization.
The regulator emphasized that without a fundamental shift in operator strategy and product design, the target will remain out of reach.
To address this, the commission plans to introduce funding-conversion targets for operators, expand the Accredited Pension Agent network, and establish broader distribution partnerships with fintechs, cooperatives, telecom providers, trade unions, and professional bodies to drive consistent contributions from the informal sector.
Total quarterly inflows under the PPP reached ₦147.16 million, bringing cumulative contributions to ₦1.66 billion since inception. In addition, 15 participants accessed ₦11.12 million through the contingent withdrawal window during the period under review.
Meanwhile, overall Retirement Savings Account (RSA) enrollment expanded, rising from 11.04 million at the close of 2025 to 11.18 million by the end of Q1 2026.
The increase was propelled by 143,248 new accounts, up from the 114,864 recorded in the prior quarter. Active pension contributors now represent roughly 12.1% of Nigeria’s estimated 92 million-strong workforce.
Market competition among Pension Fund Administrators (PFAs) showed signs of dispersal.
The top five operators accounted for 54.41% of new RSA registrations in Q1 2026, down from 62.11% in the preceding quarter. Stanbic IBTC Pension Managers retained the largest share at 17.47% (25,024 new registrations), followed by AccessARM Pensions (10.63%), FCMB Pensions (10.15%), TangerineAPT Pensions (9.65%), and Trustfund Pensions (6.73%).
Demographic figures revealed that 75.31% of all new RSA registrations belonged to individuals under the age of 40.
PenCom highlighted this expanding, youthful contributor base as a vital structural advantage, noting that their extended retirement horizon supports a stronger portfolio allocation toward growth-oriented assets rather than the prevailing heavy exposure to Federal Government securities.