The National Pension Commission (PenCom) has disclosed that job losses across Nigeria’s labour market led to N8.43 billion in pension withdrawals within a three-month period, as affected workers turned to their Retirement Savings Accounts (RSAs) for financial relief.
According to PenCom’s Third Quarter 2025 Report, 8,172 RSA holders were approved to access 25 per cent of their pension balances between July and September 2025 due to temporary loss of employment.
Under the Pension Reform Act, RSA holders who lose their jobs are permitted to withdraw a portion of their retirement savings if they are unable to secure new employment for at least four months after exiting service. The provision is designed to cushion income shocks while safeguarding long-term retirement benefits under the Contributory Pension Scheme (CPS).
“In Q3 2025, a total of 8,172 RSA holders were approved to access 25 per cent of their Retirement Savings Account balances due to temporary loss of employment,” the report stated.
“This benefit is available only to individuals who have been unable to secure another job for at least four months after exiting employment, in accordance with regulatory provisions.”
PenCom said the private sector accounted for the overwhelming majority of the approvals, with 7,688 cases, representing 94.08 per cent of total claims. The commission attributed this to higher employee turnover, restructuring pressures, and job displacement within the private sector.
“In contrast, the public sector recorded 484 approvals (5.92 per cent), comprising 461 Federal Government employees (5.64 per cent) and 23 State Government employees (0.28 per cent), consistent with the sector’s more stable employment dynamics,” the report added.
The commission said the total amount approved for disbursement during the quarter stood at N8.43 billion, providing short-term financial support to affected workers.
PenCom noted that the pattern of withdrawals underscores mounting pressure in Nigeria’s labour market and highlights the role of the 25 per cent withdrawal window as a temporary support mechanism for workers facing unemployment, while preserving the integrity of retirement savings over the long term.
