June 3 (THEWILL) — Public sector pension contributions surged by 234.85 per cent to ₦550.96 billion in the fourth quarter of 2025, highlighting stronger compliance with Nigeria’s Contributory Pension Scheme (CPS) and the settlement of outstanding pension arrears.
This was disclosed in the Q4 2025 Quarterly Industry Report released by the National Pension Commission (PenCom), which showed total pension contributions rose to ₦903.7 billion during the period.
The private sector accounted for ₦352.74 billion, representing a modest growth of 4.16 per cent.
According to PenCom, the sharp increase in public sector remittances was driven largely by pension adjustments and the clearance of outstanding obligations by government institutions.
The report also showed continued growth in pension assets, with the industry’s Net Asset Value (NAV) rising by ₦1.36 trillion to ₦27.45 trillion in December 2025 from ₦26.09 trillion recorded in September.
The increase was supported mainly by gains in equity valuations and sustained contributions.
PenCom noted that compliance enforcement continued to yield results.
During the quarter, ₦387.79 million was recovered from 16 defaulting employers, bringing cumulative recoveries since 2012 to ₦32.75 billion.
In addition, the Federal Government paid ₦30.06 billion in accrued rights to 8,770 retirees and deceased contributors’ beneficiaries.
Digital adoption within the pension industry also strengthened, with 4,560 electronic Pension Clearance Certificates issued during the quarter, covering ₦23.62 billion in pension remittances for 61,891 employees.
The report further revealed that 114,864 new Retirement Savings Accounts (RSAs) were opened, bringing the total number of contributors to over 11 million.
Notably, 74 percent of RSA holders are below the age of 40, reflecting growing participation among younger workers.
Despite the positive momentum, PenCom identified challenges, including inflation-adjusted returns remaining negative across RSA funds and low activity within the Personal Pension Plan segment, where most registered accounts remain dormant.
The commission said the data reflects the continued expansion of Nigeria’s pension industry, driven by stronger compliance, digital innovation, and growing contributor participation.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
