Hardship cripples Nigeria's personal pension plan, 92% of accounts dormant

Nigeria's Personal Pension Plan (PPP) faces a critical challenge, with over 90% of informal sector workers who initially enrolled now abandoning the scheme. Subscribers cite worsening economic hardship as the primary reason for their inability to make regular pension contributions.

Financial Vanguard's investigation reveals a stark reality: out of 215,412 registered Retirement Savings Accounts (RSAs) under the PPP, only 17,320 (8%) had received contributions as of December 2025. The remaining 198,092 accounts, a staggering 92%, are now dormant. This trend persists despite a significant rise in registrations, which increased by 175% to 215,412 in 2025 from 78,087 in 2022. During the same period, the proportion of dormant accounts grew from 87.4% to 92%.

Many traders and artisans also expressed a lack of awareness regarding the scheme's operations. In response, the National Pension Commission (PenCom) has pledged to expand outreach efforts through accredited agents, fintech companies, and cooperatives. PenCom acknowledges that registrations alone do not equate to savings and that a lack of funding creates a misleading picture of financial inclusion. Experts are urging PenCom to implement targeted strategies, including improved participant education and incentive structures, to ensure the PPP's long-term viability and effectiveness. The commission also plans to mandate annual awareness plans from Pension Fund Administrators (PFAs) or face sanctions, as it believes PFAs have been slow in promoting the plan.