Nigeria’s Contributory Pension Scheme (CPS) has continued to grow steadily, with a total of 10,928,039 Retirement Savings Account (RSA) holders recorded in September 2025. This represents an increase from 10,882,661 registered contributors in August, according to the latest summary report released by the National Pension Commission (PenCom).
The rise in enrolment shows that more Nigerian workers are embracing the formal pension structure, which remains the country’s most reliable long-term savings and retirement plan. The CPS, introduced under the Pension Reform Act, has become a major pillar of retirement security for millions of employees across both the public and private sectors. The new figures reflect continued growth in participation, especially among bigger organisations and federal institutions that have improved compliance in recent months.
However, despite the steady progress, pension penetration remains extremely low when compared to Nigeria’s huge labour market. Experts estimate that the country has over 70 million workers, but less than 16 per cent of them are currently covered under the CPS. This gap highlights the struggles the industry faces in extending pension coverage to the informal sector, small and medium enterprises (SMEs), and self-employed Nigerians who dominate the workforce.
A Lagos-based pension analyst, Mr. Ladi Balogun, said the figures show that Nigeria still has a long way to go in building a truly inclusive retirement savings culture. He noted that while the Micro Pension Plan, launched in 2019 to attract artisans, traders, transport workers, farmers and other informal workers, has recorded modest progress, it has not yet achieved the scale needed to transform the sector. He urged industry players and government agencies to increase grassroots engagement and introduce stronger incentives to get more Nigerians to sign up.
Industry observers also believe that improving compliance among SMEs is key to boosting pension coverage. Many small businesses still fail to register their employees or remit deductions promptly, despite existing regulations. Some analysts said better enforcement, more inspections, and simpler registration processes could make a big difference.
Another expert, the Chief Executive Officer of TrustPension Ltd, Mrs. Aisha Sule, said pension operators must move beyond basic awareness campaigns. She stressed that digital and mobile-driven platforms will play a major role in bringing millions of informal-sector workers on board. According to her, the future of pension inclusion lies in technology that makes contributions easy, flexible, and trustworthy. She argued that many Nigerians in the informal economy are willing to save, but they need systems that match their daily realities.
Mrs. Omolola Oloworaran, the Director-General of PenCom, has also assured contributors that the Commission remains committed to improving enforcement, strengthening compliance, and expanding the Scheme. She said PenCom will continue to encourage voluntary contributions, which have become an important tool for entrepreneurs and workers seeking to build stronger retirement savings.
Speaking on ways to improve contributor numbers and broaden national coverage, the DG said the CPS must evolve beyond a structure that mainly serves the formal sector. She emphasised that true success means ensuring that every state, local government, and informal-sector cluster participates actively in the Scheme. According to her, proper implementation across all regions will help improve retirement security nationwide.
She insisted that employer compliance will remain a top priority. She warned that all deductions made on behalf of workers must be remitted promptly and accurately. She said every contribution must be properly accounted for to ensure trust in the system. She added that the Commission will also continue to deploy its Personal Pension Plan and informal-sector initiatives, which form part of its nationwide expansion programme across all six geopolitical zones.
Analysts believe that as Nigeria’s economy evolves and more people seek financial stability, pension inclusion will become critical to reducing poverty among retirees. They note that the country must strike a balance between strict enforcement and innovative engagement methods if it hopes to increase the number of contributors by several millions in the coming years.
As PenCom continues its awareness drives, stakeholder meetings, and sensitisation campaigns, many industry observers expect the CPS to attract more workers, especially if technology, trust, and convenience are prioritised.
