The National Pension Commission (PenCom) has set a target of opening three million additional funded and active Retirement Savings Accounts (RSAs) by 2027 as part of efforts to expand pension coverage and strengthen retirement security in Nigeria.
The Director-General of PenCom, Omolola Oloworaran, announced the target on Thursday in Abuja during the National Pension Conference and Awards, organised as part of activities marking Pension Week 2026.
She said the commission had challenged Pension Fund Administrators (PFAs) and other stakeholders in the pension industry to work towards achieving the target within the next year.
According to Oloworaran, the owners of all pension fund administrators had committed to the initiative. She emphasised that the target was specifically for funded and active accounts, rather than simply registering more Nigerians on the pension system.
Her message was that opening an account without contributions does not provide the same value as an account receiving actual pension savings.
The distinction is important because the purpose of a Retirement Savings Account is to accumulate contributions that can support an individual after retirement. An account that remains empty does not build the savings needed to provide that financial security.
Oloworaran explained that the commission wanted the industry to focus on bringing more Nigerians into a pension arrangement that produces real savings and long-term benefits.
The three-million-account target forms part of a wider reform agenda aimed at repositioning Nigeria’s pension industry over the next decade.
She identified five major shifts that must take place within the industry during the next 10 years. These reforms are intended to improve the reach, effectiveness and security of the pension system.
One of the key areas is expanding participation beyond workers in the formal employment sector.
Nigeria has a large population of self-employed people and informal-sector workers who may not have access to the traditional employer-based pension arrangement. Many traders, artisans, small business owners, farmers and other independent workers earn income without participating in a structured retirement savings scheme.
PenCom is looking to address this gap through the Personal Pension Plan (PPP), accredited pension agents and other initiatives designed to make pension services more accessible.
The Personal Pension Plan provides a route through which self-employed individuals and people working outside the formal sector can voluntarily save towards retirement.
Through such arrangements, pension participation can extend beyond employees whose employers are required to make pension contributions under the contributory pension system.
PenCom’s proposed expansion is therefore significant because increasing the number of funded accounts could help more Nigerians prepare financially for old age.
The commission’s approach also reflects a shift from measuring progress through account registrations alone to considering whether those accounts are receiving contributions.
For the pension industry, achieving the target will require cooperation among pension fund administrators, agents, employers and other stakeholders.
PFAs will need to strengthen their customer acquisition efforts, improve access to pension services and make it easier for contributors to fund their accounts.
The use of digital platforms and accessible payment channels could also support participation, particularly among individuals who do not work in conventional offices.
However, the expansion effort must be accompanied by public education. Some informal-sector workers may have limited knowledge of pension products, contribution arrangements and the process for accessing retirement benefits.
Building confidence in the system will also be important. Potential contributors need to understand how their money is managed, what benefits they can expect and the rules governing access to their savings.
Oloworaran also spoke about the broader purpose of pension reform, stressing the importance of moving from a system focused mainly on savings to one that delivers greater security for retirees.
The commission’s objective is to ensure that Nigerians who have worked and saved for retirement can enjoy greater financial protection as they grow older.
The success of the three-million-account initiative will depend on whether the new accounts are genuinely active and receive regular contributions. It will also depend on the industry’s ability to reach workers who have historically remained outside formal pension arrangements.
With the 2027 target approaching, PenCom is placing pressure on pension operators to turn their commitments into measurable results.
The initiative could widen access to retirement savings, but its lasting impact will depend on consistent contributions, effective administration and continued protection of pension funds.
