PenCom Orders Mandatory Retiree Verification to Safeguard N31.3tn Pension Assets

Nigeria’s pension industry has entered a new phase of regulatory oversight, with the National Pension Commission (PenCom) introducing a mandatory annual “I Am Alive” verification exercise for retirees.

The development followed disclosure that pension fund assets in the country has climbed to N31.32 trillion and Retirement Savings Account (RSA) membership has exceeded 11.27 million contributors.

The new verification framework is aimed at confirming that retirees receiving monthly pensions under the Contributory Pension Scheme (CPS) are alive and eligible for continued benefit payments, while eliminating fraud, strengthening transparency and protecting pension assets from leakages.

According to a circular issued to licensed Pension Fund Administrators (PFAs), the exercise will become an annual requirement beginning December 1, 2026, with PenCom allowing digital verification through mobile applications, secure online portals and video calls, alongside physical verification at PFA offices and designated centres nationwide.

Under the new framework, retirees who fail to complete the verification exercise within 12 months will be granted a three-month grace period. Thereafter, their monthly pension payments will be temporarily suspended, while prolonged non-compliance could also result in suspension from the health insurance programme after one year.

The Commission said the initiative forms part of broader reforms designed to improve retirees’ welfare while ensuring accountability, transparency and sustainability of Nigeria’s contributory pension system.

The policy comes at a time when Nigeria’s pension industry continues to expand steadily.

PenCom’s latest industry report showed that pension fund assets rose from N30.94 trillion in April 2026 to N31.32 trillion in May 2026, representing an increase of N384.98 billion, or 1.24 per cent, in just one month.

The report also showed that RSA membership increased to 11,270,361 contributors, reflecting gradual growth in pension participation across both the public and private sectors.

Federal Government securities remained the industry’s dominant investment destination, accounting for N17.48 trillion, or more than 55 per cent of total pension assets.

Investments in domestic equities stood at N6.47 trillion, while money market instruments accounted for N3.02 trillion and corporate debt securities amounted to N2.26 trillion.

Fund II, which accommodates the majority of active RSA contributors, remained the largest pension fund under the multi-fund structure with assets valued at N13.48 trillion, followed by Fund III with N7.90 trillion, while the Retiree Fund held N3.55 trillion.

Industry analysts say the rapid expansion of pension assets makes stronger governance increasingly important, particularly as monthly contributions continue to rise and investment portfolios become larger and more diversified.

To support the verification exercise, PenCom directed PFAs to conduct nationwide awareness campaigns through SMS, emails, WhatsApp, radio and their websites before each verification cycle.

The Commission also instructed operators to provide dedicated support channels, implement two-factor authentication and ensure retirees’ personal information is protected in line with the Nigeria Data Protection Act 2023.

PenCom warned that Pension Fund Administrators that fail to comply with the new guidelines would face sanctions under the Commission’s regulatory framework. The circular takes effect from December 1, 2026.