The Commission disclosed this as a four-member delegation from Kenya’s Retirement Benefits Authority (RBA) arrived in Abuja on Monday to study the frameworks that have driven that growth over more than two decades of reform.

The Kenyan delegation, led by John Keah, director of Market Conduct and Industry Development at the RBA, is on a four-day technical study visit running from June 8 to 11, 2026, themed “Risk-Based Supervision and ESG Integration in Pension Funds.”

The visit marks a significant acknowledgement of Nigeria’s emergence as a reference point for pension reform and regulatory innovation on the African continent.

According to a statement from the commission, Keah said the engagement reflects the importance of cross-border learning among pension regulators seeking to strengthen retirement systems and improve outcomes for their citizens.

He noted that Kenya and Nigeria share several structural similarities in their pension landscapes, making Nigeria’s experiences directly relevant to ongoing reforms in Nairobi.

“We are here to learn from Nigeria’s experiences and assess how some of those lessons can be adapted to our own environment. We are particularly interested in PenCom’s ESG initiatives, risk-based supervision framework, strategies for expanding pension coverage to the informal sector and the Diaspora Pension Arrangement.”

Keah also commended the governance safeguards embedded in Nigeria’s pension architecture and described the Diaspora Pension Arrangement as an innovative initiative with significant potential to enhance retirement security and reduce old-age poverty. He said the arrangement was among the key areas his team had specifically come to examine.

Receiving the delegation on behalf of PenCom director general Omolola Oloworaran, Abdulrahaman Muhammad Saleem, director of the Surveillance Department, highlighted the remarkable trajectory of Nigeria’s Contributory Pension Scheme (CPS) since its introduction in 2004.

He said the growth of pension assets to over N32 trillion reflects the sustained success of structural reforms implemented over more than two decades.

The DG attributed the industry’s expansion to consistent regulatory reforms, stronger governance standards, and enhanced supervisory mechanisms designed to protect contributors’ funds and improve retirement outcomes.

She reaffirmed Nigeria’s commitment to knowledge sharing and regional collaboration as part of efforts to strengthen pension systems across Africa.

Oloworaran also described the federal government’s recent settlement of outstanding accrued pension rights liabilities as one of the most significant milestones in the history of the CPS.

She explained that the intervention addressed a longstanding challenge that had left many retirees from Treasury-Funded Ministries, Departments and Agencies (MDAs) facing prolonged delays in accessing their retirement benefits due to funding constraints and irregular budget releases.

“The issuance of a federal government bond to settle the accrued rights liabilities has transformed the retirement experience for public sector employees. Accrued pension rights are now transferred directly into retirees’ Retirement Savings Accounts, enabling immediate access to investment returns and eliminating lengthy waiting periods,” she stated.

The study visit programme features presentations and interactive sessions by several PenCom departments, study visits to selected Pension Fund Administrators (PFAs), and a concluding feedback session on lessons learned, emerging risks, and future areas of collaboration between the two regulatory bodies.

The engagement is expected to deepen bilateral cooperation between Nigeria and Kenya while fostering the exchange of regulatory best practices that support the development of more resilient, inclusive, and sustainable pension systems across the continent.

PenCom said it remains focused on advancing reforms that will further strengthen governance, enhance retirement security, and ensure the long-term sustainability of the CPS.

Delivered virtually under the theme ‘From policy to pockets: How 2026 economic shifts will shape your financial decisions’, the summit explored how Nigeria’s shift from economic stabilisation to growth consolidation is redefining opportunities and risks for decision-makers.

Discussions examined monetary policy transmission, sectoral opportunities, equity valuations and institutional risk frameworks.

Speaking on the objective of the webinar, Busola Jejelowo, chief executive, Stanbic IBTC Asset Management, said:

“Stanbic IBTC brings a distinct perspective to this conversation. As an integrated financial services group spanning asset management, banking, pension administration, insurance, stockbroking, trustees and investment banking, we support clients across every stage of their financial journey from treasury and trade finance to pension fund custody and structured investment solutions.”

Busola added that today’s environment calls for discipline and long-term thinking.

“Economic uncertainty demands proactive risk management and continuous learning. By working with trusted advisers and staying ahead of market shifts, investors can preserve value and position to capture opportunities in a transforming economy. Our teams are ready to support portfolio reviews, strategic asset allocation, and tailored solutions”.

Kuranga, Abdulazeez, an Economist in Global Markets at Stanbic IBTC Bank, expressed confidence that Nigeria’s economy will rely less on oil and grow from a wider mix of sectors in 2026.

In his view,

“We expect broader sectoral diversification in Nigeria’s growth trajectory, with the non-oil sector driving GDP expansion in 2026 as structural reforms deepen and reliance on petroleum revenues declines.”

Abdulazeez projected GDP growth of between 4.1% and 4.4% in 2026, marking a clear acceleration and pointing to stronger macroeconomic fundamentals compared to 2025.

Toyin Aju, head of Fixed Income at Stanbic IBTC Asset Management, highlighted the value of professional asset management:

“Mutual funds simplify investing by undertaking rigorous credit analysis and comprehensive reviews before deploying capital. Sound financial health starts with informed decisions, and we encourage investors to engage us in planning their financial future.”

On equities, Kehinde Owonubi, head of Equities, Stanbic IBTC Asset Management, maintained a positive outlook:

“We remain constructive across most sectors, supported by expectations of sustained economic growth and improving macroeconomic stability. In particular, the banking sector stands to benefit from this growth momentum. As interest rates decline, we expect credit growth to accelerate, supporting lending activity and profitability.”

He also described the recent regulation by the National Pension Commission (PENCOM), which revised the allowable limit for pension fund allocation to equities upward, as supportive of market depth, noting that increased pension fund participation should be constructive for long-term market development.

Across sessions, speakers agreed that while stabilisation progress is evident, translating stability into sustainable returns will require disciplined execution.

Panellists emphasised scenario-based portfolio construction incorporating optimistic, baseline, and downside cases to build resilience across varying economic outcomes.

The summit reinforces Stanbic IBTC’s role as a thought partner to investors, deepening market insight; strengthening investment decisions; and supporting the long-term growth of Nigeria’s financial ecosystem.

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Under the updated guidelines, PFAs must increase their capital from the current ₦5 billion to ₦20 billion. Meanwhile, PFCs must raise their capital base to ₦25 billion.

Revised Capital Framework

• PFAs with assets under management (AUM) above ₦500 billion will need ₦20 billion plus 1% of the excess (AUM – ₦500 billion).
• PFAs with AUM below ₦500 billion must hold a minimum of ₦20 billion.
• For PFCs, the required capital is ₦25 billion plus 0.1% of Assets Under Custody (AUC).
• New PFAs or PFCs applying for licensing must meet these thresholds immediately.

The capital review is backed by sections 60(1)(b), 62(b), and 115(1) of the Pension Reforms Act 2014.

According to PenCom, the changes reflect the exponential growth in industry assets and the need for stronger financial resilience, according to Leadership News

Any shortfall identified in audited financial statements must be corrected within 90 days.

PenCom also plans to review the required minimum capital every two years to keep pace with evolving risks.

In a circular dated August 11, 2025, and signed by Obiora Ibeziako, Head of the Benefits and Insurance Department, PenCom directed all PFAs and PFCs to immediately halt the processing of such applications from the affected banks.

“Following the cited letter, the Commission instructs that Pension Fund Administrators, including Closed Pension Fund Administrators, and Pension Fund Custodians, immediately stop accepting or processing equity contribution applications submitted by the following Primary Mortgage Banks,” the circular stated.

The affected banks are Jigawa Savings & Loans Limited, FHA Mortgage Bank Limited, Delta Trust Mortgage Bank Limited, AG Mortgage Bank Limited, Infinity Trust Mortgage Bank Plc, First Trust Mortgage Bank Limited, and Mutual Alliance Mortgage Bank Limited.

Explaining the decision, PenCom’s spokesperson, Ibrahim Buwai, said the mortgage banks failed to generate the mortgages for which pension funds had been approved. The loans were intended to help approved applicants pay their equity contributions through mortgages. However, investigations revealed that some of the institutions did not deliver on this mandate, breaching regulatory requirements.

In September 2022, PenCom introduced a policy allowing Retirement Savings Account (RSA) holders to use up to 25 percent of their RSA balance as equity contribution for residential mortgages.

It further revealed that “Out of the 1,234 applicants whose benefits were approved, 379 were from the private sector, while the remaining 855 were from the public sector.”

Pencom report also noted that a total of 14,179 Retirement Savings Account, RSA, holders who lost their jobs this year have withdrawn 25% of their pension savings to sustain themselves and their families in the first half of 2024, H1’24.

According to the second quarter report released by the National Pension Commission, PenCom, the RSA holders withdrew N23.4 billion during the period.

However, the second quarter report indicates slower withdrawals as a total of 5,528 RSA account holders withdrew N9.2 billion in Q2’24, as against 8,651 RSA holders that withdrew N14.2 billion in the first quarter. However, some industry observers attributed the higher number in Q1’24 to the usual beginning-of-the-year financial pressures.

The PenCom report for Q2’24 stated: “Out of the 5,528 applicants whose benefits were approved, 5,223 were from the private sector, while the remaining 305 were from the public sector. N9.3 billion was approved for the 5,528 RSA holders under 50 years.”

The report stated on payment of death benefits: “A total of 4,387 beneficiaries applied to access the death benefits of deceased employees/retirees. Out of that, 4,376 requests were approved, while eleven were rejected due to incorrect documentation. Of the 4,376 death benefit requests approved, 807 were from the private sector, while the remaining 3,569 were from the public sector. A total of N29,318.98 million was approved for the 4,376 beneficiaries.”

Recall that CBN had further raised MPR, which is the benchmark for interest rates in the country to 24.75% last month, thus pushing up returns on fixed income securities higher.

Findings from the data released by National Pension Commission, (PenCom) shows that PFAs’ investments in Corporate Debt Securities rose Year-on-Year, YoY, by  38.0 %  to N2.304 trillion in the   two months  ended February 2024 from N1.611 trillion in the corresponding period in 2023.

Furthermore, PFAs’ investments allocation to Corporate Debt Securities accounted for 11.7 % of the total Pension Fund Asset during the period under review, which stood at N19.759 trillion.

Analysis of the investment in Corporate Debt Securities for February 2024 showed that Hold to Maturity, HTM Corporate Bonds stood at N1.415 trillion, representing 61.4% of the total Corporate Debt Securities, followed by Available for Sale, AFS Corporate Bonds recording N871.375 billion and accounted for 37.8% of the total   Corporate Debt Securities.

The Corporate Infrastructure Bonds recorded N15.918 billion to account for 0.7% of the Corporate Debt Securities, while Corporate Green Bonds recorded the lowest vale posting N1.815 billion to account for 0.07% of the total Corporate Debt Securities.

However, analysts have said that the greater investment in Corporate Debt Securities is attributed to the rising MPR, which is the bench mark in determining the interest rate for investment in securities.

They further stressed that the rise in PFA investment in Corporate Debt Securities could also be attributed to safety in fixed income. Attention of institutional investors also shifted to debt where FGN is also active. Perhaps also, PFAs were reducing their exposure to equities, following rate hike by the CBN. With the recent rate hike by CBN the possibility is high that financial assets will generally migrate to the safety of debt and high return.

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Recall that the House of Representatives in October 2023 adopted a motion mandating its Committee on Pensions to recover N10tn pension funds “borrowed” by the Federal Government.

Dismissing the claim over the weekend, Dahir-Umar said that PenCom was not a bank and did not warehouse or manage pension funds, adding that the Federal Government did not obtain a N10tn loan from the commission.

She said,

“Investments by the PFAs in the securities of the Federal Government of Nigeria are not loans as erroneously portrayed, but investments in securities, through bonds and treasury bills, as approved by the relevant government agencies, in this case, the Debt Management Office and Securities and Exchange Commission. They are traded on authorised capital markets. That is, the Nigerian Exchange Limited and FMDQ OTC Securities Exchange.

“Moreover, pension fund assets are not managed by PenCom. I have said repeatedly that when we say pension assets have grown to N19.6tn, that does not mean PenCom has N19.6tn locked somewhere in its office or bank accounts. Pension fund assets are managed by the licensed PFAs and held in custody by the licensed Pension Fund Custodians.

“The PFAs are responsible for investing pension fund assets in allowable asset classes, including FGN debt instruments. The objectives are safety and fair returns. All these are in line with the provisions of the enabling law, the Pension Reform Act 2014, and the rules issued by the commission. It is obvious from the above that what is referred to as ‘loan to FGN’ is just investment in FGN securities by the PFAs, as is done by other institutional investors such as banks, insurance companies, asset managers, etc.”

Responding to claims that PenCom was owing Federal Government retirees arrears of pensions, Dahir-Umar argued that the Federal Government had consistently met its repayment obligations.

The PenCom DG further clarified claims about outstanding benefits to Federal Government retirees: “The delayed payment of retirement benefits to some Federal Government retirees and deceased employees is because of the inadequate and delayed funding for the payment of Accrued Pension Rights for those who were in service before the Contributory Pension Scheme was introduced when PenCom was established in 2004.

“Payment of the accrued rights is subject to release of funds by the Federal Government. So, it is beyond the powers of the Commission. However, we have been engaging the Federal Ministry of Finance for more funds to be released to settle these liabilities, but it is not a secret that the government itself has budgetary constraints.”

She said all those enrolled under the CPS had been receiving their benefits through their PFAs, adding that there was no unsolved complaint before the commission.

The total assets under the Contributory Pension Scheme reached N18.36tn by the end of 2023. (Credit: Punch)

This represents a year-on-year increase of 22.43%, which is the fastest growth on record.

This is according to the unaudited report on pension fund portfolio as released by the National Pension Commission (PenCom).

Also, the total number of RSA registrations hit 10.19 million as of the end of December 2023, reflecting a 3.3% increase from 9.86 million recorded as of the end of 2022.

A breakdown of the portfolio, showed that investments in federal government securities (N11.92 trillion) accounted for 64.9% of the total assets, which is in line with PenCom regulation to invest most of the contributions in fixed less risky assets like the FGN bonds, treasury bills etc.

Additionally, corporate debt securities (N1.91 trillion) accounted for 10.2% of the assets, while investments in the Nigerian equities market (N1.57 trillion) contributed 8.6% to the total.

A total of N1.67 trillion was invested in money market instruments as of the end of the year, accounting for 9.1% of the total pension assets.

In terms of breakdown by fund category, Fund II continues to dominate with a total asset value of N7.8 trillion, accounting for 42.5% of the funds.

This is the default fund for contributors below the age of 49 years as it allows PFAs 55% of the portfolio in variable instruments.

Fund III followed with a total portfolio of N4.94 trillion, while Fund V recorded the least amount of N731.4 million.

The Nigerian pension industry has recorded significant strides in recent years, as represented in its growing penetration rate. In the last five years, the industry asset value has more than doubled, following several reforms that shaped and is still shaping the industry.

One of such policies include the increment of the minimum regulatory capital requirement for PFAs from N1 billion to N5 billion, triggering a series of mergers and acquisitions in the industry.

A move which was aimed at fortifying the financial capacity of the pension administrators. Recall that before the recapitalization in 2021, there were 22 PFAs, however following the implementation, the number of players reduced to about 19, with more anticipated mergers in 2024.

Also, the restructuring of some major commercial banks into Holding companies, with diversified interest in the pensions industry spurred improved competition in the industry.

New players such as Access Pensions, Norrenberger Pensions, GT Pensions, Tangerine amongst others have helped to drive increased growth in the industry through market efficiency and profitability.

Access Holdings recently announced that its subsidiary, Access Golf Nigeria has received the necessary regulatory approval to acquire a majority stake in ARM Pension Managers, a move that could further reduce the number of PFAs.

According to the records,  a total of 101,820 Retirement Savings Account (RSA) holders switched their Pension Fund Administrators (PFA) in 2023, representing an increase of 10.2% compared to the 92,413 transfers recorded in the previous year, and the highest on record.

A total of N462 billion was moved by the RSA holders in the review year, 28% higher than the N361.5 billion that was transferred in the previous year, bringing the total since the inception of the transfer window to N1.14 trillion.

This transfer is in line with section 13 of the Pension Reform Act (PRA) 2024, which specifies that an RSA holder may transfer his/her account from one PFA to another.