The National Pension Commission (PenCom) has clarified that the 38% decline in pension contributions recorded in the first quarter of 2026 was largely due to exceptional Federal Government remittances made in the preceding quarter.
According to PenCom’s Nigerian Pension Industry Quarterly Report, total pension contributions fell to N559.42 billion in Q1 2026 from N903.70 billion recorded in Q4 2025.
However, the Commission said the Q4 figure was significantly boosted by one-off government payments that distorted quarter-on-quarter comparisons.
What they are saying
In a clarification note sent to Nairametrics, PenCom explained that Q4 2025 pension contributions included N499.15 billion in extraordinary inflows from the Federal Government.
- “Total pension contributions amounted to N559.42 billion in Q1 2026, with the public sector contributing 50.9% and the private sector 49.1%. On the surface, this represents a 38.1% decline from the N903.70 billion recorded in Q4 2025. However, this comparison is affected by significant one-off Federal Government remittances recorded during Q4 2025,” the Commission stated.
According to PenCom, the exceptional inflows comprised:
- N379.96 billion for pension increases arising from the 15%, 33%, and consequential adjustments implemented in 2007, 2010, 2019, and 2024
- N107.72 billion for the settlement of the 2.5% shortfall in employer pension contributions covering April 2017 to December 2021; and
- N11.47 billion in accrued rights credited into the Retirement Savings Accounts (RSAs) of eligible staff of Treasury-Funded Agencies.
Underlying contributions rose 38.2%
PenCom noted that after excluding the exceptional inflows, underlying pension contributions in Q4 2025 amounted to N404.55 billion.
Using this adjusted figure, the N559.42 billion recorded in Q1 2026 represents an…
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