Pension contributions under Nigeria’s Contributory Pension Scheme (CPS) plunged by 38 per cent in the first quarter of 2026.
According to data released by the National Pension Commission (PenCom) in the Nigerian Pension Industry Quarterly Report, total pension contributions declined to N559.4 billion in Q1 2026, compared with N903.7 billion recorded in the fourth quarter of 2025.
The data shows that the public sector contributed 50.9% of total pension remittances during the quarter, while the private sector accounted for the remaining 49.1%.
Although the report did not provide specific reasons for the decline, the Commission described the level of contributions as healthy despite the sharp quarter-on-quarter drop.
The report highlighted ongoing enforcement efforts, revealing that PenCom recovered N1.18 billion from 15 defaulting employers during the quarter.
The recovered amount comprised N450 million in outstanding pension contributions and N729 million in penalties.
PenCom also disclosed that it had intensified enforcement actions by engaging the Independent Corrupt Practices and Other Related Offences Commission (ICPC) on unresolved compliance cases, with six employers already interrogated.
The Commission also issued 12,185 electronic Pension Clearance Certificates (PCCs) during the review period, covering N212.63 billion in pension remittances for 199,481 employees.
According to the report, this represents roughly two-and-a-half times the volume of certificates issued in the preceding quarter.
The Federal Government also paid N11.19 billion in accrued pension rights to 4,592 retirees and deceased contributors, while PenCom continued to automate pension processing through its Contribution and Bond Redemption Application platform.
The report showed growing adoption of the pension-backed mortgage framework.
A total of 28,437 contributors accessed N92.7 billion from their Retirement Savings Accounts (RSAs) to finance residential mortgages under Section 89(2) of the Pension Reform Act.
