The National Pension Commission (PenCom) is set to make contributions to the Pension Protection Fund (PPF) mandatory for Nigerian workers, aiming to boost retirement security and ensure a dignified life for retirees.
This disclosure was made by the Director-General of PenCom, Omolola Oloworaran, during a roundtable discussion with the leadership of the Trade Union Congress of Nigeria (TUC) on Tuesday.
The Pension Protection Fund, established under the Pension Reform Act of 2014, is designed to provide financial assistance to pensioners with low balances in their Retirement Savings Accounts (RSAs).
However, the fund’s impact has been limited due to a lack of sufficient contributions and funding.
What the DG is saying
Oloworaran explained that PenCom is transitioning from ensuring system stability to focusing on “visible impact,” emphasizing the need to broaden the fund’s reach across both the public and private sectors.
- “Currently, only PenCom, Pension Fund Administrators (PFAs), and Pension Fund Custodians (PFCs) contribute to the Pension Protection Fund. This restricts the scale at which we can implement it across sectors. Our plan is to begin with the public sector, and once we grow the fund and ensure sustainability, we will extend contributions to private sector workers as well,” Oloworaran stated.
She added that PenCom will seek legislative changes to make worker contributions to the fund compulsory, with the support of organized labor, particularly the TUC.
- “By the time we begin to change the law to make it mandated for workers to contribute, I am sure that TUC will be right beside us, fighting with us,” she added.
Get up to speed
In 2025, the Federal Government allocated N107 billion to the Pension Protection Fund to enhance the financial security of low-income retirees under the Contributory Pension Scheme (CPS).
This is part of a N758 billion bond approved to clear outstanding liabilities and improve retirement benefits for vulnerable pensioners.
The bond also covers N253 billion in accrued pension rights for retirees from treasury-funded Ministries, Departments, and Agencies (MDAs), as well as N388 billion to clear overdue pension increases dating back to 2007.
More insights
The Director-General shared that, in addition to strengthening the Pension Protection Fund, PenCom is working on reforms under the “Pension Revolution 2.0” initiative.
These reforms include establishing a minimum pension for Nigerian workers to ensure retirees receive a living wage.
Oloworaran also revealed that PenCom will soon introduce free health insurance for low-income earners, further demonstrating its commitment to worker welfare.
- “What better way to ensure the well-being of workers than providing health care? We are providing free health care for low-income earners,” she said.
The President of the Trade Union Congress of Nigeria (TUC), Comrade Festus Osifo, expressed the union’s support for the reforms, stating that TUC is always ready to collaborate with PenCom on initiatives aimed at improving the welfare of Nigerian workers.
- “As TUC, we fight for workers’ rights, and we welcome this kind of partnership with PenCom. These initiatives are intended to better the workforce, and we are in tune with anything that will improve the welfare of Nigerian workers,” Osifo affirmed.
He added that TUC is open to continued dialogue to ensure the reforms meet workers’ needs and are effectively implemented.
What you should know
PenCom reported a rise in Nigeria’s pension assets, which reached N29.43 trillion in February 2026, marking a month-on-month increase of N1.39 trillion.
This growth represents the strongest monthly expansion since the introduction of the Contributory Pension Scheme over two decades ago, surpassing the previous record of N1.18 trillion in January 2024.
- The Commission’s data showed that investment in domestic equities surged to N5.41 trillion, reflecting greater participation in Nigeria’s stock market by pension funds.
- However, foreign equity exposure remained modest at N261.99 billion, indicating cautious positioning by fund managers amid global uncertainties.
- Other investments included N2.25 trillion in corporate debt securities, N368.99 billion in state government bonds, and N2.74 trillion in money market instruments.
PenCom remains committed to building on this momentum, ensuring that pension funds remain secure while expanding their benefits for Nigerian workers.
