Nigerians Move ₦191 Billion in Pension Shakeup as Search for Better Returns Intensifies

A growing number of Nigerians are taking a more proactive approach to managing their retirement savings, resulting in a sharp 19% rise in pension fund transfers in the first quarter of 2025, according to iReporter Online.

Recent data from the National Pension Commission (PenCom) reveals that 27,701 Retirement Savings Account (RSA) holders transferred their accounts from one Pension Fund Administrator (PFA) to another between January and March 2025, moving a total of ₦191.12 billion. This marks a significant increase from ₦141.87 billion and 23,226 transfers recorded in the fourth quarter of 2024.

This surge highlights a growing awareness among Nigerian workers about the importance of not just saving for retirement, but actively seeking higher returns and improved service delivery from pension fund managers.

One example is Peter Ukwong, a 53-year-old estate surveyor based in Port Harcourt, who switched PFAs two years ago in search of better returns. Since then, he has inspired several of his colleagues to do the same, with many now benefitting from more competitive returns and improved customer experience.

Analysts attribute the spike in transfers to rising financial literacy, digital access to pension performance data, and increasing competition among PFAs. However, the increased competition has also raised concerns over unethical practices.

In a recent circular, PenCom warned against coercive tactics by employers and financial institutions, which allegedly pressure employees and vendors to transfer their RSAs to preferred PFAs. The Commission emphasized that this violates the Pension Reform Act (PRA) 2014, which guarantees RSA holders the right to freely choose or transfer to a PFA of their choice.

PenCom’s Head of Surveillance, A.M. Saleem, stated in the circular that any attempt to influence RSA transfers, directly or indirectly, undermines the integrity of the contributory pension system.

The Commission cited Section 11(1) and Section 13 of the PRA 2014, both of which affirm employees’ rights to freely select or transfer PFAs. It also pointed to Section 2.3 of the regulatory guidelines, which strictly prohibits employers from interfering in the choice of a pension provider.

As awareness spreads and transparency improves, many RSA holders are now holding PFAs accountable, ensuring that their retirement funds are not just safe but also actively growing.