Total pension contributions reached N1.318tn in the first three quarters of 2025, according to data from the National Pension Commission, driven primarily by stronger inflows from the private sector.
An analysis of PenCom’s quarterly reports shows total pension contributions for the first three quarters of 2025 neared the N1.368tn recorded for all of 2024. They were also close to the N1.319tn in 2023 and surpassed the N1.037tn in 2022 and prior years. Notably, total contributions have consistently crossed the N1tn threshold only in the last four years. Since inception, the total contribution stood at N12.627tn as of September 2025.
In the period under review, the private sector accounted for N744.36bn, significantly outpacing the N574.42bn recorded by the public sector. This means private sector contributions represented the larger share of total pension inflows during the period.
Quarterly data show a steady rise in overall contributions from N389.17bn in Q1 to N426.42bn in Q2, before peaking at N503.19bn in Q3.
The Q3 performance was largely influenced by a sharp increase in private sector contributions, which climbed to N338.65bn, the highest quarterly figure across both sectors. In contrast, public sector contributions were more moderate, standing at N185.93bn in Q1, rising to N223.95bn in Q2, before declining to N164.54bn in Q3.
Overall, the data indicate that growth in pension contributions during the period was led by the private sector, particularly in the third quarter, resulting in total contributions of N1.318tn across Q1 to Q3.
The Pension Fund Operators Association of Nigeria commented on the Q3 figures. The association noted, “In Q3 2025, total remittances into individual Retirement Savings Accounts reached N503.19bn. This reflects strong compliance with pension requirements in both sectors. The public sector contributed N164.54bn, or 32.7 per cent of total inflows. The private sector accounted for N338.65bn, or 67.3 per cent. This underscores the continued expansion and dominance of private sector participation in the pension system.”
“Public sector remittances declined by 26.5 per cent, falling from N223.95bn in Q2 to N164.54bn in Q3. This decrease is largely attributed to seasonal disbursement patterns. In contrast, private sector contributions rose sharply by 67.3 per cent, increasing from N202.47bn to N338.65bn.”
The association maintained that the recorded “growth reflects improved compliance, broader coverage, and potentially higher employment-related remittances from private employers during the quarter. Overall, the sustained inflow of contributions signals continued growth and resilience of the pension system, strengthening the financial base of the Contributory Pension Scheme and enhancing its long-term sustainability, investment capacity, and ability to meet future retirement benefit obligations.”
Meanwhile, The PUNCH reports that pension fund assets rose to N26.66tn as of 31 October 2025, up from N26.09tn in the previous period, representing a net growth of about N571.8bn month-on-month, reinforcing the sector’s role as one of the largest pools of long-term domestic capital in the Nigerian economy.
