Nigeria’s Retirement Savings Account (RSA) registrations have surpassed 10.9 million, reflecting sustained expansion of pension coverage, even as low contribution activity in the informal sector and administrative gaps raise concerns about long-term sustainability.
The Quarter Report published on the website of the National Pension Commission disclosed that and a copy of which was obtained by The HR Anchor, 129,154 new RSAs were opened in the third quarter of 2025.
The under-40 demographic accounted for 74.6 per cent of new registrants, signalling strong youth participation in the Contributory Pension Scheme.
Informal Sector Participation Weak
However, beneath the growth in registrations lies a troubling participation trend in the Personal Pension Plan (PPP), which was designed to extend pension coverage to informal sector workers.
Of the 215,914 registered PPP accounts, only 7.6 per cent were funded during the quarter, indicating a high level of dormancy.
Analysts describe the disparity between enrolment and active contribution as a structural challenge. While the pension system appears successful in issuing account numbers, consistent savings behaviour remains weak among informal sector participants.
Given Nigeria’s vast informal workforce — estimated at over 90 million — sustained dormancy could undermine efforts to broaden meaningful retirement security beyond the formal economy.
Public Sector Remittances Decline
The report also showed volatility in contribution flows. Public sector pension remittances fell by 26.5 per cent in Q3, attributed to seasonal fiscal disbursement patterns.
In contrast, private sector contributions rose by 67.3 per cent quarter-on-quarter, reflecting improved compliance enforcement and expansion in wage bills.
The divergence highlights concerns about the predictability of government remittances, which are critical to maintaining contributor confidence in the system.
Data Recapture Compliance Low
Administrative integrity also remains a concern. Only 15.8 per cent of legacy RSA holders have completed the mandatory data recapture exercise, aimed at updating and validating contributor biodata.
Industry stakeholders warn that incomplete records may result in delays in retirement benefit processing, death benefit claims and account transfers, potentially eroding public confidence.
The Commission urged employers and Pension Fund Administrators to intensify awareness campaigns and accelerate compliance with the recapture initiative.
Overall, the Q3 figures illustrate a pension system that is expanding rapidly in coverage and scale, but still confronting fundamental challenges in contribution consistency, data integrity and public sector funding stability.
