Nigeria’s pension contributions reached nearly US$934 million (1.318 trillion naira) in the first nine months of 2025, driven mainly by stronger inflows from the private sector, according to data from the National Pension Commission (PenCom).
An analysis of PenCom’s quarterly reports shows that contributions between January and September were close to the US$970 million (1.368 trillion naira) recorded for the whole of 2024. The figure is also broadly in line with the US$935 million (1.319 trillion naira) collected in 2023 and exceeds the US$735 million (1.037 trillion naira) recorded in 2022, underscoring sustained growth in pension inflows in recent years.
Total annual pension contributions have crossed the US$700 million mark only in the past four years, reflecting expanding participation and improving compliance under Nigeria’s contributory pension scheme. Since the scheme’s launch, cumulative contributions stood at about US8.95 billion (12.627 trillion naira) as of September 2025, PenCom data showed.
The private sector accounted for the bulk of pension inflows during the period under review. Contributions from private employers and employees amounted to about US$528 million (744.36 billion naira), significantly higher than the $407 million (574.42 billion naira) recorded by the public sector.
Quarterly data point to a steady rise in total contributions through 2025. Pension inflows increased from about US$276 million (389.17 billion naira) in the first quarter to US$302 million (426.42 billion naira) in the second quarter, before peaking at around US$357 million (503.19 billion naira) in the third quarter.
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The strong third-quarter performance was largely driven by a sharp increase in private sector remittances, which climbed to about US$240 million (338.65 billion naira)—the highest quarterly figure recorded across both sectors. In contrast, public sector contributions were more volatile.
Public sector inflows stood at around US$132 million (185.93 billion naira) in the first quarter, rose to $159 million (223.95 billion naira) in the second quarter, and then declined to about $117 million (164.54 billion naira) in the third quarter.
The Pension Fund Operators Association of Nigeria (PenOp) said the third-quarter figures reflected strong compliance with pension requirements, particularly in the private sector. In a statement, the association said total remittances into individual Retirement Savings Accounts reached about $357 million in the third quarter alone.
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“The public sector contributed US$117 million, representing 32.7 per cent of total inflows, while the private sector accounted for US$240 million, or 67.3 per cent,” PenOp said. “This underscores the continued expansion and dominance of private sector participation in the pension system.”
PenOp noted that public sector remittances fell by 26.5 per cent in the third quarter, attributing the decline largely to seasonal disbursement patterns. By contrast, private sector contributions rose sharply by 67.3 per cent, increasing from about $143 million (202.47 billion naira) in the second quarter to US$240 million in the third quarter.
According to the association, the growth reflects improved compliance, broader coverage and potentially higher employment-related remittances from private employers. It added that the sustained inflow of contributions points to the growing resilience of Nigeria’s pension system.
The association said the rising contributions are strengthening the financial base of the contributory pension scheme, improving its long-term sustainability and enhancing its investment capacity to meet future retirement obligations.
Meanwhile, pension fund assets continued to expand. Total assets under management rose to about US$18.9 billion (26.66 trillion naira) as of Oct. 31, 2025, up from US$18.5 billion (26.09 trillion naira) a month earlier, representing a net increase of roughly US$405 million (571.8 billion naira).
The growth reinforces the pension sector’s role as one of Nigeria’s largest pools of long-term domestic capital, at a time when authorities are seeking to deepen local funding sources for investment and economic growth.
