Pension inflows in Nigeria recorded a strong increase in the first quarter of 2026, with quarterly contributions under the Personal Pension Plan climbing by 42.46 per cent to N147.16m from N103.30m in the fourth quarter of 2025. The N43.86m increase pushed total contributions under the scheme to N1.66bn since inception, according to data from the National Pension Commission’s Q1 2026 pension industry report.
Despite the impressive rise in contributions, the figures reveal a major challenge facing Nigeria’s Micro Pension Plan: most registered accounts are still inactive. PenCom reported that 219,316 accounts had been registered under the scheme from inception to Q1 2026, but only 18,811 accounts, representing 8.6 per cent, had received contributions. This leaves a staggering 200,505 accounts, or 91.4 per cent, without any financial contributions.
Financial analyst Ade Ojapa said the increase shows that active contributors are beginning to put more money into their pension accounts, but the high number of dormant accounts remains a concern. According to him, registration alone is not translating into consistent financial commitment, highlighting the need to find better ways of keeping informal-sector workers actively engaged with the pension system.
The challenge is particularly significant because informal workers do not have the automatic salary deductions enjoyed by formal-sector employees. A member of the Pension Fund Operators Association of Nigeria explained that unpredictable income and rising household costs often make voluntary long-term savings difficult for self-employed workers. Under the Micro Pension Plan, contributors can make flexible payments and access up to 40 per cent of their accumulated savings for eligible contingent needs, while 60 per cent remains reserved for retirement.
With Nigeria’s informal sector accounting for an estimated 80 per cent of the workforce, stakeholders believe activating the dormant accounts could significantly expand pension coverage and financial inclusion. Economist and financial inclusion advocate Dr. Kemi Ojo called for stronger partnerships between PenCom, Pension Fund Administrators, microfinance institutions and trade unions, alongside mobile USSD channels and automated micro-contributions. While the 42.46 per cent jump in pension inflows is encouraging, the bigger test will be turning the country’s 200,505 dormant accounts into regular contributors.
source: punch
