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Home Insurance & Pension Business

Young Nigerians account for 75% of new pension accounts in Q1 2026

by Joy Agwunobi
September 6, 2026
in Insurance & Pension Business
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Nigeria’s pension system added 143,248 new Retirement Savings Accounts (RSAs) in the first quarter of 2026, with Nigerians below the age of 40 accounting for more than three quarters of the new enrolments, according to the latest report by the National Pension Commission (PenCom).

The development pushed cumulative RSA registrations under the Contributory Pension Scheme (CPS) from 11.04 million at the end of December 2025 to 11.18 million by the end of March 2026.

Data contained in PenCom’s Q1 2026 report showed that 11,183,475 RSAs had been registered by the end of the quarter, representing an addition of 143,248 accounts during the three-month period.

The pace of enrolment also accelerated compared with the preceding quarter, when 114,864 new RSAs were opened. The Q1 figure therefore represents an increase of about 24.7 per cent over the number of new accounts recorded in Q4 2025.

The age distribution of the new entrants was particularly significant, with younger Nigerians making up the bulk of those joining the formal pension system.

According to the report, 57,256 new RSAs, representing 39.97 per cent of the Q1 additions, belonged to Nigerians below 30 years, while another 50,622 accounts, or 35.34 per cent, were opened by people aged between 30 and 39.

Combined, the two age groups accounted for 107,878 new accounts, representing 75.31 per cent of total RSA registrations during the quarter.

Nigerians aged 40 to 49 accounted for 26,334 new RSAs, representing 18.38 per cent, while those aged 50 years and above recorded 9,036 new registrations, or 6.31 per cent.

The figures indicate that the latest expansion of the CPS is being driven predominantly by younger workers who have a relatively long period of working life ahead of them before retirement.

PenCom said the demographic composition of the new registrations remained favourable to the long-term growth of the pension system, given the extended contribution period available to younger contributors.

The commission also reported a gradual narrowing of the gender gap in pension enrolment. Female registrations accounted for 44.08 per cent of new RSAs opened during the quarter, while males accounted for 55.92 per cent.

Despite the increase in membership, PenCom noted that pension coverage still has significant room for expansion, particularly among workers outside the formal economy.

The commission estimated that the 11.18 million registered contributors represented about 12.1 per cent of Nigeria’s estimated 92 million labour force, highlighting the size of the potential market for further pension enrolment.

The Q1 performance therefore comes against the backdrop of efforts to extend pension coverage beyond the traditional formal workforce and bring more workers, particularly those in the informal sector, into the Contributory Pension Scheme.

PenCom’s report further highlighted the implications of the increasingly youthful composition of new contributors for the management of pension assets.

It noted that the large proportion of younger contributors provides the pension system with a long-term contributor base and argued that the investment strategy of pension funds would need to take account of the longer investment horizons associated with this demographic profile.

As of the period under review, the report noted that 58.07 per cent of pension assets were allocated to Federal Government securities, while suggesting that the emerging age profile of contributors could inform future consideration of investment strategies and default-fund glide paths.

The Q1 figures thus point to two parallel developments in Nigeria’s pension industry: a stronger pace of new RSA registrations and the increasing participation of younger Nigerians, while a large proportion of the country’s workforce remains outside the formal pension system.

Joy Agwunobi
Joy Agwunobi
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