The National Pension Commission (PENCOM) has clarified that the 38% decline in pension remittances recorded in the first quarter of 2026 is largely due to one-off government payments made in the corresponding period of 2025, and not a reflection of systemic weakness in the pension system.
PENCOM Explains the 38% Decline
In a statement issued on Friday, PENCOM’s Head of Corporate Communications, Abdulqadir Ibrahim, explained that the drop in remittances was expected because the 2025 figures were inflated by special payments from the federal government. These payments, which were not repeated in 2026, included the payment of outstanding pension arrears and other non-recurring contributions.
According to the commission, total pension contributions received in Q1 2026 stood at ₦1.2 trillion, compared to ₦1.94 trillion in the same period of 2025, representing a 38% year-on-year decline. However, PENCOM stressed that the underlying contribution trend, excluding the one-off payments, remains stable.
Impact on Pension Fund Assets
The clarification comes amid concerns from stakeholders about the health of the pension industry. Pension fund assets under management (AUM) still grew to ₦23.4 trillion as of March 2026, up from ₦22.8 trillion at the end of 2025, indicating that the industry continues to expand despite the temporary dip in remittances.
Ibrahim noted that the commission is monitoring the situation and expects remittances to normalize in the coming quarters as the effects of the one-off payments fade. He also reassured contributors that their benefits are secure and that the commission remains committed to ensuring timely and accurate remittance reporting.
Industry Reactions and Next Steps
Pension fund administrators (PFAs) have welcomed the clarification, with some noting that the decline was already anticipated in their internal forecasts. The Pension Fund Operators Association of Nigeria (PenOp) had earlier called for transparency in reporting remittance data, and PENCOM’s statement is seen as a response to that request.
Moving forward, PENCOM says it will continue to engage with stakeholders to improve data accuracy and provide clearer guidance on the impact of non-recurring payments on contribution statistics. The commission also plans to release a detailed breakdown of the Q1 2026 remittance figures in its next quarterly report.
