The National Pension Commission (PenCom) has announced a bold initiative aimed at increasing the number of funded Retirement Savings Accounts (RSAs) in Nigeria by three million within the next year. This ambitious target was revealed by PenCom's Director-General, Omolola Oloworaran, during the National Pension Conference and Awards held in Abuja on October 29, 2026.

Oloworaran emphasized that this initiative is particularly focused on informal workers, a demographic that has historically been underserved in the pension system. The goal is to enhance pension coverage across the country, ensuring that more Nigerians, including traders, farmers, and transport operators, can benefit from retirement savings plans.

She clarified that the target of three million accounts pertains specifically to genuinely funded RSAs, not just registrations. "An empty account is a statistic, but a funded account is a future," Oloworaran stated, highlighting the importance of actual contributions to retirement savings.

As part of this initiative, PenCom has outlined five major reforms aimed at transforming Nigeria's pension industry over the next decade. The first reform focuses on expanding pension coverage beyond traditional payroll-based participation, which has limited access for many informal workers. Through the Personal Pension Plan (PPP) and the involvement of accredited pension agents, PenCom aims to reach those who have previously been excluded from the pension system.

In addition to expanding access, Oloworaran announced that President Bola Tinubu is set to launch a Pension Security Initiative in November 2026. This initiative aims to strengthen retirement security and protect Nigerians from financial hardships in old age. The Commission will also intensify enforcement against employers who fail to meet their pension obligations, using its powers under the Pension Reform Act to recover any outstanding contributions owed to workers.

Another significant aspect of the reforms is the recapitalisation requirement for pension fund administrators (PFAs). All PFAs and custodians must complete their recapitalisation by June 30, 2027, to enhance their financial capacity and ensure the protection of pension assets, which are considered workers' deferred earnings.

Oloworaran also urged pension operators to make prudent investment decisions, warning against reckless investments that could jeopardize contributors' retirement savings. This call for accountability and regulatory compliance was echoed by President Tinubu, who stressed the importance of safeguarding the financial futures of Nigerian workers.

Recent industry data indicates that competition among PFAs is intensifying, with five leading administrators accounting for 54.41% of new RSA registrations in the first quarter of 2026. Stanbic IBTC Pension Managers led the way with 25,024 registrations, representing 17.47% of the total. Other notable players include AccessARM, FCMB Pensions, TangerineAPT, and Trustfund Pensions.

As Nigeria's pension assets continue to grow, now standing at ₦31.48 trillion, the reforms being implemented by PenCom promise to deliver higher monthly payments and improved access to retirement benefits for workers across the country. These changes aim to alleviate the financial struggles faced by pensioners and those approaching retirement, ensuring a more secure future for all Nigerians.