73 Million Nigerian Workers Excluded from Pension Program, Having Dim Prospects for Old Age

It has been found that over 73 million Nigerian workers, employed both by the government and the private sectors, are not registered with the CPS and hence do not have access to well-structured financial provisions for retirement.

According to data obtained by LEADERSHIP from the National Pension Commission (PenCom), only 10.92 million contributors have been enlisted for the CPS among the estimated 84.15 million employed Nigerians. This data, sourced from the 2024 estimates of the Labour Force Survey, carried out by the National Bureau of Statistics, depicts the enormous gap that exists concerning pension coverage.

Under the CPS, employers, especially those that employ at least three workers, are required to enroll their employees and contribute monthly. However, this law is often flouted by several firms, which only applies it selectively for the purpose of reducing costs. Some of the firms also fail to contribute the amounts owed. PenCom has fined the offenders about N15 billion, and they also got back about N15 billion for the defaulted pension payments.

The pension scheme believes that financial pressure, low profit margins, and the absence of a compliance culture are among the factors that make it difficult for organizations to join the scheme. This means that millions of workers are left vulnerable to hardships when they go into retirement.

Despite these challenges, the pension fund assets continue to record growth. According to PenCom, pension fund assets grew from N25.895 trillion in August 2025 to N26.089 trillion in September 2025, up by N194 billion. The growth was recorded due to returns on investments, new contributions, interest on fixed income securities, and equity and mutual fund investments.

Stakeholders who attended recent industry events in Lagos identified the need for enforcement and education on financial literacy. They advocated for better compliance with the Pension Reform Act of 2014, which would guarantee better retirement benefits for Nigerian workers.

According to PenCom’s Director General, Omolola Oloworaran, efforts are being made for universal coverage, including the private sector. She also explained that new rules regarding investments provide for the allocation of pension funds into infrastructure investments and private equity, yielding better results for scheme members.

To entice more Nigerians to contribute, PenCom has also renamed the Micro Pension Plan the Personal Pension Plan. This is targeted at business people who, hitherto, were not participating in the formal pension scheme. Industry players, including the Parthian Pensions Operations Director, Adetunbi Ashaye, indicated that some Nigerians view their pensions as of little importance. This prompted the need for greater financial awareness on the importance of steady and consistent pension contributions toward a secure retirement.