Despite the rapid growth of Nigeria’s pension assets to a record N31.32 trillion, the vast majority of retirement savings accounts (RSAs) opened under the personal pension plan (PPP) are unfunded, widening the gap between pension registration and actual retirement savings.

Data from the National Pension Commission (PenCom) first-quarter 2026 industry report showed that only 18,811 of the 219,316 PPP accounts registered nationwide had received contributions as of March 2026, leaving 200,505 accounts, representing 91.4 per cent, unfunded.

The development highlights one of the biggest challenges confronting efforts to expand pension coverage in Nigeria: getting Nigerians who open retirement accounts to move beyond registration and begin making regular contributions.

It also reflects a stressed economy with many small business operators struggling to meet their basic needs.

Although PPP registration continues to increase, the high number of inactive accounts suggests that the growth in participation has yet to translate into a corresponding expansion in long-term retirement savings among self-employed workers, informal sector operators and other Nigerians outside the mandatory employer-based pension arrangement.

The PPP, introduced to provide pension coverage for self-employed persons and employees of organisations with fewer than three employees, is regarded as a key instrument for extending the CPS to the large informal economy.

PenCom’s latest figures suggest that the challenge is no longer simply convincing Nigerians to open pension accounts, but ensuring that accounts are active and adequately funded.

During the first quarter, PPP contributions stood at N147.16 million, bringing cumulative contributions since inception to N1.66 billion. The amount remains modest when compared with the scale of the wider pension industry, whose assets have continued to expand.

The industry’s total pension assets reached N31.32 trillion in May 2026, representing a N384.98 billion increase from N30.94 trillion in April and a 29.5 per cent rise from N24.18 trillion recorded in May 2025.

The contrasting figures point to an imbalance in the pension market. While assets under management continue to rise, largely driven by the formal sector and investment returns, pension coverage among workers outside formal employment remains relatively shallow.

For industry stakeholders, expanding the PPP is critical to ensuring that the growing pension pool does not remain concentrated among formally employed workers.

The segment is particularly significant given the size of Nigeria’s informal economy, where millions of traders, artisans, farmers, transport operators and small-business owners earn incomes outside conventional payroll structures.