Nigeria’s National Pension Commission (PenCom) is preparing to introduce mandatory contributions to the Pension Protection Fund (PPF) as part of efforts to strengthen retirement security for workers and improve welfare for pensioners.
The initiative was disclosed by PenCom Director-General Omolola Oloworaran during a meeting with the Trade Union Congress of Nigeria (TUC), where she explained that the agency is shifting focus from system stability to delivering more direct impact for retirees.
The Pension Protection Fund, created under the Pension Reform Act of 2014, is designed to support pensioners with low balances in their Retirement Savings Accounts. However, its effectiveness has been limited due to insufficient funding and restricted contribution sources.
According to the DG, only PenCom, Pension Fund Administrators, and Pension Fund Custodians currently contribute to the fund. She noted that expanding contributions—first within the public sector and later to the private sector—would significantly improve its capacity. She also confirmed plans to pursue legislative backing to make worker contributions compulsory in the future.
PenCom also highlighted broader reforms under its “Pension Revolution 2.0” agenda, which includes proposals for a minimum pension threshold to guarantee a living wage for retirees. The commission further revealed plans to introduce free health insurance for low-income earners as part of wider social protection reforms.
The Trade Union Congress, led by Trade Union Congress of Nigeria President Festus Osifo, expressed support for the reforms, stating that the union is open to collaboration aimed at improving workers’ welfare.
Recent data from PenCom shows that Nigeria’s pension assets rose to N29.43 trillion in February 2026, reflecting strong growth in investment performance across equities, bonds, and money market instruments.
Overall, the reforms are aimed at strengthening the pension system, expanding coverage, and ensuring more sustainable retirement benefits for Nigerian workers.
