Nigeria pension assets hit ₦32trn amid Kenya study visit
By Patience Ikpeme
Nigeria’s pension industry has recorded a major expansion, with total pension assets now rising to over ₦32 trillion, representing about 10.4 per cent of the country’s Gross Domestic Product (GDP). The National Pension Commission (PenCom) says this growth reflects the steady progress made since the introduction of the Contributory Pension Scheme (CPS) in 2004.
The Director General of National Pension Commission, Ms. Omolola Oloworaran, made this known during an engagement with a visiting delegation from the Retirement Benefits Authority, which is in Nigeria from June 8 to 11, 2026, to study the country’s pension regulatory and supervisory systems.
She was represented at the event by the Director of Surveillance Department, Abdulrahaman Muhammad Saleem, who explained that the strong growth in pension assets over the years has been driven by continuous reforms, stronger governance structures, and improved supervisory practices aimed at protecting contributors’ funds and improving retirement benefits.
According to her, the expansion of the pension sector shows that the reform introduced over two decades ago has continued to deliver results, particularly in building confidence in the system and ensuring steady accumulation of long-term savings.
Oloworaran noted that one of the most important achievements in recent years is the Federal Government’s settlement of outstanding accrued pension rights liabilities. She described the development as a turning point in addressing long-standing delays that had affected retirees from Treasury-Funded Ministries, Departments and Agencies, where funding gaps and slow budget releases often slowed down access to benefits.
She explained that the introduction of a Federal Government bond to clear these liabilities has changed the retirement process for affected workers. With this arrangement, accrued pension rights are now transferred directly into retirees’ Retirement Savings Accounts, allowing them to begin accessing investment returns immediately without unnecessary waiting periods.
“The issuance of a Federal Government bond to settle accrued rights has changed the retirement experience for public sector workers. Accrued pension rights are now credited directly into Retirement Savings Accounts, which allows retirees to benefit from investment returns without delay,” she said.
She added that while significant progress has been made, PenCom remains committed to further reforms that will strengthen governance in the pension system, improve retirement security, and ensure the long-term sustainability of the CPS for future generations.
The PenCom Director General also used the occasion to restate Nigeria’s readiness to deepen cooperation with other African countries through knowledge sharing and regulatory collaboration. She said such partnerships are important in strengthening pension systems across the continent and improving outcomes for workers after retirement.
A statement from National Pension Commission noted that the visit by the Kenyan delegation reflects growing recognition of Nigeria as a reference point in pension reform and regulatory innovation within Africa.
The four-member delegation from Kenya was led by John Keah, Director of Market Conduct and Industry Development at the Retirement Benefits Authority. Speaking at the opening session in Abuja, Keah explained that the visit was part of efforts to strengthen learning among pension regulators across countries facing similar challenges in retirement financing and pension coverage.
He said Kenya and Nigeria share similarities in the structure of their pension systems, making Nigeria’s experience particularly useful for ongoing reforms in Kenya. According to him, the delegation is interested in understanding how Nigeria has implemented key reforms to improve efficiency and widen participation in the pension sector.
“We are here to learn from Nigeria’s experience and explore how some of the lessons can be adapted to our own environment. We are particularly interested in PenCom’s environmental, social and governance initiatives, risk-based supervision framework, strategies for expanding pension coverage to the informal sector, and the Diaspora Pension Arrangement,” he said.
Keah also commended the regulatory safeguards built into Nigeria’s pension system, noting that they have helped strengthen trust and stability in the industry. He further described the Diaspora Pension Arrangement as an innovative policy that could help improve retirement security for Nigerians living abroad while reducing the risk of old-age poverty.
The technical study visit, themed “Risk-Based Supervision and ESG Integration in Pension Funds,” includes presentations from different departments of PenCom. It also features interactive sessions designed to give the visiting team a deeper understanding of how Nigeria regulates and monitors pension fund operations.
As part of the programme, the delegation is expected to visit selected Pension Fund Administrators to observe operational practices firsthand. The visit will conclude with a feedback session where both sides will review key lessons, discuss emerging risks in pension management, and identify areas for future cooperation.
Officials say the engagement is expected to further strengthen ties between Nigeria and Kenya in pension regulation, while also supporting the exchange of ideas that can help build more resilient, inclusive, and sustainable retirement systems across Africa.
