Public sector pension contributions surged 234.85 per cent to N550.96bn in the fourth quarter of 2025, highlighting stronger compliance with Nigeria’s Contributory Pension Scheme and the settlement of outstanding pension arrears.

This was disclosed in the Q4 2025 Quarterly Industry Report released by the National Pension Commission, which showed total pension contributions rose to N903.7bn during the period. The private sector accounted for N352.74bn, representing a modest growth of 4.16 per cent.

According to PenCom, the sharp increase in public sector remittances was driven largely by pension adjustments and the clearance of outstanding obligations by government institutions.

The report also showed continued growth in pension assets, with the industry’s Net Asset Value rising by N1.36tn to N27.45tn in December 2025 from N26.09tn recorded in September.

The increase was supported mainly by gains in equity valuations and sustained contributions.

PenCom noted that compliance enforcement continued to yield results. During the quarter, N387.79m was recovered from 16 defaulting employers, bringing cumulative recoveries since 2012 to N32.75bn. In addition, the Federal Government paid N30.06bn in accrued rights to 8,770 retirees and deceased contributors’ beneficiaries.

Digital adoption within the pension industry also strengthened, with 4,560 electronic Pension Clearance Certificates issued during the quarter, covering N23.62bn in pension remittances for 61,891 employees.

The report further revealed that 114,864 new Retirement Savings Accounts were opened, bringing the total number of contributors to over 11 million. Notably, 74 per cent of RSA holders are below the age of 40, reflecting growing participation among younger workers.

Despite the positive momentum, PenCom identified challenges, including inflation-adjusted returns remaining negative across RSA funds and low activity within the Personal Pension Plan segment, where most registered accounts remain dormant.

The commission said the data reflects the continued expansion of Nigeria’s pension industry, driven by stronger compliance, digital innovation, and growing contributor participation.