RSA registrations rise 24.7% as pension coverage stays low

By Mariam Abeeb

The National Pension Commission said 143,248 new Retirement Savings Accounts were registered under Nigeria’s Contributory Pension Scheme in the first quarter of 2026, representing a 24.7 per cent increase from 114,864 recorded in the preceding quarter.

PenCom disclosed this in its Q1 2026 report, stating that the increase pushed cumulative RSA registrations from 11.04 million at the end of December 2025 to 11.18 million by March 2026, driven by improved digital onboarding and sustained public sensitisation.

The commission said the latest figure represented a significant improvement in pension enrolment compared with the fourth quarter of 2025.

“The quarterly cadence is materially stronger than the 114,864 opened in Q4, and reflects both improved digital onboarding and sustained public sensitisation,” PenCom said.

Despite the growth, the commission said pension coverage remained low relative to Nigeria’s labour force.

According to the report, registered pension contributors represented only about 12.1 per cent of the country’s estimated 92 million labour force.

This leaves a substantial coverage gap, particularly among workers in the informal sector.

PenCom said the five largest Pension Fund Administrators accounted for 54.41 per cent of new registrations during the quarter.

The figure was lower than the 62.11 per cent recorded by the five leading PFAs in Q4 2025.

Th commission said the decline in concentration suggested increased competition among PFAs, particularly mid-tier operators.

The Q1 data also showed that younger Nigerians accounted for the majority of new pension registrations.

PenCom said contributors below the age of 40 represented 75.31 per cent of the new RSAs opened during the quarter.

The commission described the youthful profile as a long-term strength for the pension industry, noting that younger contributors have longer periods to save and accumulate investment returns before retirement.

PenCom, however, said the age profile should also be considered in pension investment strategies.

It explained that contributors with longer investment horizons could have greater capacity to accommodate appropriate levels of investment risk.

The commission said expanding pension coverage remained critical to ensuring more Nigerians, particularly those outside the formal sector, were captured by the CPS.