The Federal Government of Nigeria has allocated a total of N334.54 billion for contributory pension schemes across its various agencies in the 2026 appropriation bill.
This budgetary allocation is intended to cover pension contributions for 674 federal government agencies, parastatals, universities, teaching hospitals, and security agencies, among others.
The amount is detailed in the 2026 budget proposal, which was recently submitted to the National Assembly for approval.
What the document is saying
The appropriation bill outlines the major contributions within the contributory pension scheme for the year, with a significant portion earmarked for various sectors.
Among the largest allocations is N73.671 billion for the police formations and commands, marking the highest contribution for the year.
This amount forms part of the broader N1.302 trillion budgeted for the Nigeria Police Force, which includes salaries, pensions, and other operational expenses.
Other government agencies
Next in line is the Nigeria Security and Civil Defence Corps (NSCDC), with an allocation of N15.493 billion for its contributory pension scheme. This is part of the NSCDC’s total N244.259 billion budget for the year.
Additionally, the Nigeria Correctional Services has been allocated N8.459 billion for its pension contributions, which forms part of the N198.846 billion total allocated for the services.
At the lower end of the allocation spectrum, the National Agriculture Development Fund (NADFund) is allocated N830,529 for its contributory pension scheme, while the Nurse Tutor Programme Akoka, Lagos, is allocated N1.491 million.
What this means
The total pension assets in Nigeria have now surpassed N25 trillion, a milestone that ensures new retirees will be able to access their lump-sum benefits promptly, without unnecessary delays.
This increase in assets highlights the resilience of the Nigerian pension system, offering a solid foundation for the future of retirement savings.
The N334.54 billion earmarked for contributory pension schemes in the 2026 appropriation bill further signals stability for the over 552,000 retirees currently benefiting from the scheme. With this allocation, retirees can be assured of timely, uninterrupted monthly pension payments in the coming year.
What you should know
In October 2025, Nigeria’s pension industry continued to show growth, with total pension assets reaching N26.66 trillion. This marked a 2.19% month-on-month increase from N26.09 trillion recorded in September, and a notable 21.63% year-on-year surge.
Despite the challenging macroeconomic environment characterized by inflation, foreign exchange volatility, and capital market uncertainties, the pension industry has remained resilient.
A major contributor to this stability has been cautious about rebalancing into safer, more liquid assets and strong confidence in Federal Government securities.
The data also highlights a steady increase in the number of RSA (Retirement Savings Account) enrollments, which grew from 10.93 million in September to 10.97 million in October. This reflects the continued onboarding of new formal sector workers and micro-pension participants.
Federal Government securities continue to be the dominant asset in Nigeria’s pension portfolio, accounting for 59.86% of total pension assets. These instruments grew marginally by 1.35% from the previous month, reaching N15.96 trillion.
Thanks to President Bola Ahmed Tinubu ‘s administration along with PenCom DG Ms Owoloraran and Ministry of Finance for all the care rendering to the senior citizens. May God Almighty render them care as they have rendered care to us. Thank you.
Please Pencom should make it very important to include self founded department like Nigeria customs service pensioner to receive their pension arrears because we were yet to collect our pension arrears