Pension contributions fall 38% in Q1 2026 as Nigeria’s remittances slow
Pension contributions under Nigeria’s Contributory Pension Scheme dropped to N559.4 billion in Q1 2026, a 38% decline from N903.7 billion recorded in the fourth quarter of 2025. Public sector remittances made up 50.9% of the total, while the private sector accounted for 49.1%, according to data released by the National Pension Commission (PenCom).
The sharp fall follows an exceptionally strong Q4 2025 and signals a slowdown in pension remittances during the first three months of 2026. Despite the drop, PenCom described the contribution level as healthy, noting net assets crossed N29 trillion and benefit administration continued on schedule. The Commission also recovered N1.18 billion from 15 defaulting employers—N450 million in outstanding contributions and N729 million in penalties—and issued 12,185 electronic Pension Clearance Certificates covering N212.63 billion for 199,481 employees.
Additionally, 28,437 contributors accessed N92.7 billion from their Retirement Savings Accounts to finance residential mortgages under the pension-backed mortgage framework, indicating growing adoption. PenCom is pushing for higher employer statutory contributions in ongoing Pension Reform Act amendments, a proposal opposed by the Organised Private Sector of Nigeria over concerns of added business pressure.
Will you review your RSA contributions in light of the sector slowdown, or wait for clearer policy direction before adjusting your retirement savings plan?