…As PenCom Recovery Reach N4.4Bn
Yemisi Izuora
Compliance rate in Nigeria’s pension industry is expanding exponentially as the National Pension Commission (PenCom) records sizable pension recovery.
The noticeable and measurable increase was presented to the media in Lagos, when the Director General (DG) of the Commission, Omolola Aroworaran, presented the Agency’s score card for the outgoing year.
At the media engagement in Lagos, themed ‘A 365-Day Scorecard’ Aroworaran, said this past year has been defined by bold decisions, structural reforms, and measurable impact.
Showcasing her achievements, the DG, revealed that from January to November 2025, total pension recoveries reached ₦4.04 billion, compared to ₦1.44 billion for the whole of 2024.
This represents an increase of over 180 percent. Most notably, ₦2.06 billion was recovered in the third quarter of 2025 alone, almost 150 per cent of total recoveries recorded in the entire year 2024.
She added, “A similar shift is evident in compliance behaviour. Prior to the third quarter, Pension Clearance Certificates were issued at a modest quarterly average of about ₦150 billion. Following the circular, the third quarter recorded issuances of about ₦233 billion, far exceeding the average of preceding quarters. This clearly demonstrates that when compliance is tied to real economic consequences, behaviour changes.”
She stated that the media engagement is therefore not a celebration alone but a review, a reckoning, and a recommitment, adding, ‘Our reforms are built on dialogue, data, and discipline, not isolation.”
The DG, said that in the next phase of the Pension Revolution, the Commission’s focus would remain clear which includes expanding coverage, deepen trust, improve investment outcomes, strengthen supervision, and protect retirees as retirement security is not a privilege but a right, vowing that PenCom will defend it firmly and fairly.
She recalled that the Commission formally launched Pension Revolution 2.0, the most comprehensive reform agenda in the Nigerian pension industry since
2004.
“This was not cosmetic reform. It was structural. It brought together new regulations, stronger supervision, governance reforms, digital transformation, and industry realignment, all designed to future-proof the pension system and position it as a pillar of national stability and long-term development.” she noted.
“One of the most historic milestones of the year was the Presidential approval and disbursement of ₦758 billion to settle outstanding pension liabilities. This unprecedented intervention sent a clear and powerful signal that Nigeria honours its promises to its workers and retirees.
“We also cleared long-standing pension increase backlogs for Federal Government treasury-funded retirees, some dating as far back as 2007. What many believed would never be paid has now been paid.
“In addition, zero waiting time for the payment of accrued pension rights was restored with effect from July 2025. Today, retirees receive their benefits when due, not months or years later.
“To further enhance benefit adequacy, we introduced Pension Boost 1.0, which has already added ₦2.68 billion to monthly pension payments for CPS retirees. These are not just numbers. They are meals on tables, medicines purchased, and dignity preserved.” DG Aroworaran, said.
On the technology front, the Agency achieved full automation of critical pension processes, including the Pension Clearance Certificate system, benefit processing, and contribution remittance platforms.
Also, operational efficiency has improved, she said noting that leakages have reduced, and transparency has increased. We will continue to upgrade our systems and application as technology evolves.
“We also inaugurated the Board of Trustees of the PenCare Initiative, a landmark industry-wide intervention to provide free and accessible healthcare for low income retirees. Retirement should be a season of peace, not a period defined by anxiety over medical bills.
“To strengthen collaboration and leadership across the industry, we established the Pension Industry Leadership Council, a strategic platform that brings together industry leaders to drive innovation, reinforce accountability, and build collective ownership of reforms.” she further reported.
Also, a defining reform of the year was the restructuring and rebranding of the Micro Pension Plan into the Personal Pension Plan, and this was about meeting Nigerians where they are – Artisans, Traders, Gig workers, Creatives, and Informal sector workers.
Under the Personal Pension Plan, the Agency simplified onboarding, expanded digital enrolment, and crucially introduced Accredited Pension Agents.
“Let me be clear, Accredited Pension Agents are not merely distribution channels. They are an employment strategy. Thousands of young Nigerians are expected to be trained, certified, and deployed as pension professionals, earning livelihoods while expanding pension coverage. This is inclusion with impact. Financial inclusion that creates jobs.” Aroworaran, said.
Let me now address governance and industry structure.
This year, PenCom took deliberate steps to raise capital requirements for pension operators.
This according to her was not punitive but purposeful as stronger capital means stronger institutions, better risk management, deeper expertise, and a greater capacity to attract and retain skilled professionals.
The Commission also strengthened governance regulations to eliminate shadow directorships.
“Let me state this clearly. Pensions cannot be managed from the shadows. Transparency, accountability, and fit-and-proper leadership are non-negotiable. A system entrusted with Nigerians’ life savings must be governed by integrity and competence.
“These reforms are already professionalising the industry, deepening skills, and raising standards.” she said.