Omolola Oloworaran, Director-General of the National Pension Commission (PenCom), voiced her concerns about the troubling downturn in Nigeria’s pension industry since 2021.
Speaking on Thursday at the 2025 Pension Industry Leadership Retreat, themed ‘Sustainable Retirement – Strategic Blueprint for Economic Development and Inclusion,’ she shed light on the Pension Reform Act of 2004, which grants PenCom the authority to regulate, oversee, and ensure the smooth operation of pension affairs in the country.
Oloworaran elaborated on the Commission’s pivotal role, particularly in regulating and supervising the Contributory Pension Scheme (CPS), which was introduced by the Act.
Addressing the retreat’s attendees, she emphasized the critical need for stakeholders to rethink Nigeria’s pension future. The objective: to safeguard and expand retirement savings, harness the potential of pension assets, and leverage them as a driving force for the country’s economic development.
Over the last two decades, Nigeria’s pension sector has made significant strides, amassing more than N23 trillion in assets and serving over 10 million contributors, all under a regulatory framework that has earned global respect.
Despite these successes, Oloworaran pointed to an uncomfortable reality: the industry’s growth has stagnated since 2021, entering a phase of negative growth.
“We’re at a point where pension fund administrators are mostly just shifting account balances between themselves, with minimal new contributions or meaningful expansion into untapped areas,” she explained.
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“This is unsustainable. If we continue down this path, we risk a system that’s mature yet stagnant.”
Oloworaran stressed the urgency of fostering exponential growth, particularly by including the 77 million informal sector workers who are currently underrepresented in the system. At present, fewer than 10,000 of these workers are active contributors to the CPS.
She also underscored the need for pension-driven growth that addresses Nigeria’s pressing issues particularly infrastructure and food security.
“We need growth that not only generates real returns but also maintains dignity for retirees,” she stated.
Looking globally, Oloworaran cited examples from developed economies, where pension funds have spurred national development. In Australia, pension funds have financed major infrastructure projects, while in South Africa, they have supported housing initiatives.
“These nations didn’t achieve success by playing it safe. They found the right balance between caution and bold strategies—safeguarding savers while enabling long-term progress. We must follow suit.”
To make a meaningful impact, Oloworaran suggested that the pension sector might need to adapt. She reminded the audience that the Pension Reform Act tasks PenCom with both safeguarding and growing retirement savings, a responsibility that requires active and bold decision-making. “We must evolve our investment strategies, deepen financial markets, create innovative products, and, crucially, include every Nigerian worker regardless of their employment status into the pension system.”
The retreat, she added, provides an invaluable platform for asking hard questions. How can Nigeria finance infrastructure and food security without jeopardizing safety and liquidity? How can markets be deepened to accommodate alternative assets while maintaining fiscal responsibility? How can technology and data transform the pension industry? And perhaps most critically, how can success be measured not just in monetary terms, but by the impact on people’s lives?
“The Nigerian pension industry holds the key to reshaping the nation’s developmental trajectory,” Oloworaran concluded.