PenCom Sets One-Year Deadline for PFAs to Open 3 Million Funded Pension Accounts

• PenCom targets three million funded Retirement Savings Accounts in one year, with a focus on informal workers
• Tinubu’s Pension Security Initiative is due in November 2026, as PFAs face a June 2027 recapitalisation deadline
• Five leading PFAs captured 54.41% of new RSA registrations in the first quarter of 2026

Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.

The National Pension Commission (PenCom) has directed Pension Fund Administrators (PFAs) and other industry stakeholders to open three million additional funded Retirement Savings Accounts (RSAs) within one year.

PenCom's Director-General, Omolola Oloworaran, announced the ambitious target on Thursday, October 29, 2026, at the National Pension Conference and Awards in Abuja, held as part of National Pension Week 2026.

She said the initiative would expand pension coverage, particularly among millions of Nigerians working outside the formal employment sector.

PenCom unveils five major pension reforms

Oloworaran outlined five strategic reforms designed to transform Nigeria's pension industry over the next decade.

The first involves shifting pension coverage from payroll-based participation to broader population inclusion, targeting traders, farmers, transport operators and other informal workers.

Through the Personal Pension Plan (PPP) and accredited pension agents, PenCom intends to reach previously underserved Nigerians.

She emphasised that the target involves three million genuinely funded accounts rather than mere registrations.

"An empty account is a statistic, but a funded account is a future," she declared.

According to her, PFA owners have already committed to achieving the target.

Tinubu plans new pension security initiative

The second reform focuses on strengthening retirement security and protecting Nigerians from financial hardship in old age, according to Nairametrics.

Oloworaran disclosed that President Bola Tinubu would launch the Pension Security Initiative in November 2026.

She also promised tougher enforcement against employers defaulting on pension obligations.

The Commission, she said, would deploy its statutory powers under the Pension Reform Act to recover outstanding contributions owed to workers.

Pension administrators face new recapitalisation deadline

Another major reform involves strengthening the financial capacity of pension operators.

Oloworaran reiterated that all pension fund administrators and custodians must complete their recapitalisation by June 30, 2027.

She also advocated responsible pension investments in infrastructure, housing, electricity and productive enterprises.

However, she stressed that pension assets remain workers' deferred earnings and must be protected.

Tinubu warns against reckless pension investments

Represented by Secretary to the Government of the Federation George Akume, President Tinubu urged pension operators to prioritise accountability, regulatory compliance and prudent investment decisions.

He warned against reckless investments that could jeopardise contributors' retirement savings.

Meanwhile, Awabah CEO Tunji Andrews urged accredited pension agents to intensify public awareness campaigns and expand pension participation.

Competition Grows Among Leading Pension Administrators

Industry data showed that five leading PFAs accounted for 54.41% of new RSA registrations in the first quarter of 2026.

Stanbic IBTC Pension Managers led with 25,024 registrations, representing 17.47%.

AccessARM, FCMB Pensions, TangerineAPT and Trustfund Pensions followed, highlighting growing competition as PenCom pushes for wider pension inclusion.

Nigeria’s pension assets hit ₦31.48trn

Legit.ng earlier reported that Nigeria’s pension assets have climbed to ₦31.48 trillion, as the National Pension Commission (PenCom) says its reforms are delivering higher monthly payments, clearing outstanding benefits and shortening the wait for retirement income.

For workers approaching retirement and pensioners struggling with living costs, the changes promise relief from inadequate payments and uncertainty over when benefits will arrive.