Nigeria’s pension regulator is seeking wider coverage and stronger retirement protections after its chief said nearly 70% of private-sector workers receive pensions below the national minimum wage.
National Pension Commission (PenCom) Director-General Omolola Oloworaran gave the estimate at a summit in Abuja on Oct. 29. She said private-sector workers were retiring with benefits below the wage floor, highlighting a gap in retirement security.
Pension fund administrators have pledged to increase the number of funded, active retirement accounts by three million over the coming year, with informal-sector workers among those the effort aims to reach, BusinessDay and The Guardian reported. PenCom has an existing route for some workers outside standard employer plans: its personal pension plan covers self-employed people and employees of organizations with fewer than three employees.
PenCom’s August 2026 industry summary listed pension assets of ₦31.802 trillion and 11,391,008 Retirement Savings Account members as of Aug. 31. Those totals show the scheme’s scale, but the summary does not break down how many retirees receive payments below the minimum wage.
Oloworaran attributed low benefits in part to contributions being calculated from pensionable earnings that may not include a worker’s full pay. She also said inflation reduces the purchasing power of savings. The Pension Reform Act 2014 sets minimum monthly contributions of 10% from employers and 8% from employees.
A Pension Security Initiative is expected to launch Nov. 10, with a minimum pension guarantee and health care for retirees, according to reports by BusinessDay and Punch. The 2014 law provides for a minimum guarantee. BusinessDay also reported that PenCom called on private employers to contribute to the Pension Protection Fund alongside the Federal Government and the pension industry.
Oloworaran set June 30, 2027, as the deadline for pension fund administrators and custodians to complete recapitalization.
