Despite ongoing efforts by the National Pension Commission (PenCom) to promote personal pension savings, the vast majority of registered Personal Pension Plan (PPP) accounts remain unfunded, highlighting a critical challenge for Nigeria’s pension industry.
As of the third quarter of 2025 (Q3’25), PenCom reported that 191,240 PPP accounts—approximately 92.4 percent of the 206,917 registered accounts—were inactive, leaving only 15,677 accounts, or 7.6 percent, with actual contributions.
The regulator noted that while registration continues to grow, the persistent lack of funding in most accounts limits the accumulation of pension assets and undermines the long-term effectiveness of the PPP initiative. PenCom emphasized the need for targeted strategies to drive regular contributions, including enhanced participant education, incentive structures, and simplified remittance processes.
A closer examination of the data reveals significant disparities among Pension Fund Administrators (PFAs) in funding levels. AccessARM Pensions, which manages the largest share of PPP accounts at 107,547, had just 2,129 funded accounts, representing only 2 percent of its total, highlighting a substantial pool of dormant accounts. Similarly, Stanbic IBTC reported 33,340 unfunded accounts, or 92 percent of its total.
Other PFAs with particularly high unfunded ratios include Guarantee Trust Pensions (96%), NLPC PFA (95%), and Trustfund Pensions (94%).
By contrast, a few PFAs demonstrated relatively higher engagement. Fidelity Pension Managers had 1,667 funded accounts out of 1,887, leaving only 12 percent unfunded. FCMB Pensions and Veritas Glanvills also recorded lower unfunded ratios of 69 percent and 71 percent, respectively, suggesting stronger contributor activity.
PenCom stressed that the figures point to a vast untapped potential within Nigeria’s informal sector. “A broader, more coordinated effort by the pension industry is essential to deepen micro-pension penetration,” the commission said. Strengthening public awareness, expanding agent networks, and designing products suited to the realities of informal workers are critical steps to achieving national pension inclusion targets and ensuring the long-term sustainability of the PPP.