The Federal Government of Nigeria has earmarked N334.54 billion for contributory pension schemes across its agencies in the 2026 appropriation bill, underscoring its commitment to supporting retirees and strengthening the pension system. The allocation covers 674 federal agencies, parastatals, universities, teaching hospitals, and security organizations.
The budget proposal, recently submitted to the National Assembly for approval, reveals that among the largest contributors are police formations, which will receive N73.671 billion, forming part of the broader N1.302 trillion allocated for salaries, pensions, and operational expenses of the Nigeria Police Force. Following closely is the Nigeria Security and Civil Defence Corps (NSCDC), which has an allocation of N15.493 billion for its pension scheme from a total budget of N244.259 billion.
Other allocations include N8.459 billion for Nigeria Correctional Services and smaller amounts such as N830,529 for the National Agriculture Development Fund and N1.491 million for the Nurse Tutor Programme in Lagos. These figures highlight the government’s comprehensive approach to ensuring pension coverage across all sectors, from high-profile security agencies to smaller educational programs.
Nigeria’s pension assets have now surpassed N25 trillion, ensuring that retirees can access their lump-sum benefits promptly. The N334.54 billion allocation signals continued stability for more than 552,000 retirees, guaranteeing uninterrupted monthly pension payments despite challenges in the wider economy. The growth reflects the resilience of the pension system and builds confidence in long-term retirement planning.
Recent industry data shows Nigeria’s total pension assets reached N26.66 trillion in October 2025, a 21.63% year-on-year increase. This growth is supported by cautious investment in safer, liquid assets and strong Federal Government securities, which now account for 59.86% of total pension assets. Enrollment in Retirement Savings Accounts (RSAs) continues to rise, demonstrating a steady onboarding of formal sector workers and micro-pension participants into the system.
source: nairametrics