Over 538,000 Nigerians who lost their jobs have withdrawn a total of N294.4 billion from the nation’s pension fund assets, the National Pension Commission (PenCom) has disclosed.
The withdrawals, permitted under the Contributory Pension Scheme (CPS), cover the period from 2004, when the scheme was established, to March 2025.
The Head of Surveillance at PenCom, Abdulrahman Muhammad Saleem, who spoke at the commission’s 2nd Quarter Press Conference in Lagos, explained that the affected contributors accessed 25 percent of their Retirement Savings Accounts (RSAs) in line with provisions of the Pension Reform Act, 2014.
The law allows contributors under the age of 50 who lose their jobs and are unable to secure new employment within four months to withdraw a quarter of their pension savings to cushion the effect of unemployment.
Saleem noted that a total of 538,237 workers have benefitted from this provision, with N294.4 billion already disbursed. He assured that the withdrawals have not adversely affected the pension fund, which has grown steadily.
“The pension assets increased by N820 billion in the first quarter of 2025, rising from N22.51 trillion in December 2024 to N23.33 trillion as of March 31, 2025,” he stated.
Some of the disengaged workers, industry sources revealed, invested their pension withdrawals in small businesses to become self-employed, while others used the funds to meet immediate financial needs.
Meanwhile, PenCom has intensified enforcement to compel employers to comply with the CPS by enrolling all eligible staff, including contract workers. The Director-General of PenCom, Ms. Omolola Oloworaran, warned that defaulting employers risk sanctions from November 30, 2025.
She also announced new measures that prohibit Pension Fund Administrators and Custodians from transacting with companies that fail to remit pensions for their employees, adding that vendors and service providers must now present valid Pension Clearance Certificates (PCCs) before engaging in any business with Licensed Pension Fund Operators (LPFOs).
“Every counterparty must confirm compliance with the PCC requirement across its vendor network. This attestation must be updated annually and included in all investment documentation,” she stated.
Oloworaran stressed that parent companies, subsidiaries, holding companies, and institutional shareholders of LPFOs are also required to possess valid PCCs as a precondition for entering into service agreements.
She reaffirmed PenCom’s commitment to protecting the retirement savings of Nigerian workers while ensuring increased coverage and accountability within the pension system.
