PenCom Recovers ₦36.6bn From Pension Defaulters

The National Pension Commission (PenCom) says it had recovered ₦36.6 billion from employers who failed to remit workers' pension contributions as of July 2026, a new record, and has warned that defaulters will be pursued. At the same time, its "Pension 2.0" reforms are opening Retirement Savings Accounts (RSAs) to traders, artisans, self-employed people and Nigerians abroad. Here is what was announced, and what it means for your retirement money.

The enforcement message

Director-General Omolola Oloworaran spoke at the 2026 PenCom Media Conference in Lagos. Her core point was simple: a pension deduction that shows on your payslip but never reaches your RSA is, in her words, a breach of trust and a breach of the law.

She said recoveries from defaulting employers last year broke every record in the history of the Contributory Pension Scheme (CPS), and that 2026 has already passed that record. PenCom said it will find what is owed, recover it and hold those responsible to account.

She also urged workers to read their statements, know their Pension Fund Administrator (PFA) and report any deduction that does not appear in their account.

Key numbers

Vanguard reported the ₦31.48 trillion figure as of June 2026, while Leadership reported it as of July 2026. Either way, pension assets grew by roughly half in under two years.

Pension 2.0: who can now join

Nigerians abroad and in foreign companies

PenCom has issued a Guideline on the Administration of Retirement Savings Accounts in Foreign Currency. According to Punch, it gives Nigerians working abroad, and Nigerians working for foreign companies, a framework to save into the CPS. For people earning in dollars or pounds, this is a way to build Nigerian retirement savings without converting everything to naira.

Self-employed and informal workers

The bigger change is the Personal Pension Plan (PPP), which replaced the old micro-pension guidelines in October 2025. It is aimed at traders, artisans, vulcanisers, fashion designers, self-employed professionals and people in organisations with fewer than three employees.

PenCom's Head of Micro Pension, Babatunde Alayande, said registration has been cut to just a phone number and a National Identification Number (NIN). The commission has licensed corporate organisations and fintech companies as agents to sign people up in markets and underserved communities.

How the PPP works:

• Your RSA is split in two: 40% goes into a contingent portion you can access for emergencies, and 60% is preserved strictly for retirement.
• You can retire from age 50 and take benefits as a lump sum or as a programmed withdrawal.
• Contributions are invested, like those of formal-sector workers.

Alayande noted that fewer than 10% of informal sector workers are covered by any social security programme. Bringing even a small share of the 85 million target into the system would be a large change.

$250 million for infrastructure

PenCom also announced the pension industry's first joint commitment to infrastructure: $200 million from pension fund operators over the next 10 years, plus $50 million expected from development finance institutions, with talks still ongoing. The first tranche is expected before the end of the first quarter of 2027. Specific projects have not been named.

The DG said the aim is to give the economy productive capital while securing sustainable returns for contributors.

Bigger operators, better returns

Separately, BusinessAM reported that Oloworaran told pension operators who have not met new capital requirements to act with urgency ahead of the July 2027 recapitalisation deadline. She stressed that bigger balance sheets mean little if contributors do not feel better returns and service.

What this means for investors

Your RSA is likely one of the largest investments you own, even if you never think about it. A few practical steps:

• Check your statement. Compare the pension deductions on your payslips with the credits in your RSA. Gaps should be raised with your employer and your PFA, and can be reported to PenCom.
• If you are self-employed, look at the PPP. The 40% emergency portion means you are not locking away every naira until age 50.
• If you live abroad, ask your PFA about the foreign currency RSA guideline.
• Watch the infrastructure plan. Infrastructure can offer long-term returns but money is tied up for years, so how projects are chosen matters.
• Capital market link. With ₦31.48 trillion under management, pension funds are among the largest buyers of government bonds and NGX stocks. How PFAs allocate money affects the wider market.

This is for information only and is not investment advice.

FAQ

What should I do if my employer deducts pension but does not remit it?

Ask your employer and your PFA for an explanation first, using your payslips and RSA statement as evidence. If it is not resolved, report it to PenCom, which says it is actively recovering unremitted contributions.

Can a trader or artisan open a pension account?

Yes. Under the Personal Pension Plan, self-employed and informal workers can open an RSA with a phone number and NIN, often through licensed agents or fintech partners.

Can I withdraw from a Personal Pension Plan before retirement?

Partly. 40% of your RSA sits in a contingent portion you can access for emergencies. The other 60% is kept for retirement, which can begin from age 50.

Sources

• Vanguard, "Pension defaulters in trouble as PenCom steps up enforcement" (12 Oct 2026)
• Punch, "PenCom widens pension net to diaspora, self-employed Nigerians" (6 Oct 2026)
• Leadership, "PenCom Mobilises $250m For Infrastructure, Targets 85m Informal Workers"
• BusinessAM, "PenCom demands capital compliance, better pension returns" (12 Oct 2026)