Public sector pension contributions surge 234.85% in Q4 2025

Public sector pension remittances rose sharply by 234.85%, reaching N550.96 billion in the fourth quarter of 2025.

This data is highlighted in the Q4 2025 Quarterly Industry Report released by the National Pension Commission (PenCom).

The report shows that total Q4 pension contributions reached N903.7 billion, with the private sector contributing N352.74 billion during the same period.

The surge reflects both improved compliance and the settlement of outstanding arrears across public sector organizations.

This growth reflects increasing adherence to Nigeria’s Contributory Pension Scheme (CPS) and points to a strengthening culture of pension contribution discipline across sectors.

What the data is saying 

PenCom’s report shows continued asset accumulation, with Net Asset Value (NAV) rising to N27.45 trillion in December 2025, up N1.36 trillion from September 2025’s N26.09 trillion, largely driven by equity revaluation rather than fresh contributions.

• “Contribution discipline is improving. Public sector remittances rose by 234.85% on the back of pension increases and the settlement of arrears; private sector remittances grew by 4.16%,” the report noted.

Federal Government legacy obligations are being honoured, with N30.06 billion paid to 8,770 retirees and deceased contributors as accrued rights.

During Q4, N387.79 million was recovered from 16 defaulting employers, bringing cumulative recoveries since 2012 to N32.75 billion, reflecting continued enforcement success.

The data highlights that compliance enforcement and arrears settlement are yielding tangible results, contributing to the growth of pension assets.

More insights

Digital compliance is also gaining traction, with 4,560 electronic Pension Clearance Certificates (ePCCs) issued in Q4, covering N23.62 billion for 61,891 employees.

• The report shows 114,864 new Retirement Savings Accounts (RSAs) onboarded, bringing the total to 11,042,903 RSAs, with 74% of contributors under age 40.
• PenCom noted two structural issues: real returns across all RSA funds remain below inflation over a 36-month basis, and 92% of registered Personal Pension Plan (PPP) accounts remained dormant with no contributions in Q4.

Compliance varies by state: only eight of 36 states and the FCT were fully compliant with the CPS, while the top five Pension Fund Administrators (PFAs) accounted for 62.11% of new RSAs, and the top two alone contributed 39.71%.

AccessARM Pensions led PPP registrations with 52.53% of cumulative accounts, though only 16.36% of legacy RSAs were recaptured, indicating uneven progress across operators.

What you should know 

Nigeria’s total pension assets rose to N29.43 trillion in February 2026, marking a month-on-month increase of N1.39 trillion, the highest since the introduction of the CPS over two decades ago.

This surpasses the previous record of N1.18 trillion in January 2024.

The growth was driven by fresh contributions, increased public sector remittances, and valuation gains across RSA funds.

PenCom’s data highlights the continued expansion of Nigeria’s pension industry, emphasizing the importance of compliance, digital adoption, and targeted interventions to unlock real returns for contributors.