The Federal Government of Nigeria has proposed N334.54 billion in the 2026 Appropriation Bill to fund contributory pension schemes across 674 federal agencies, parastatals, universities, teaching hospitals, security outfits, and other public institutions.
Okay News reports that the allocation, detailed in the recently submitted budget proposal, covers pension contributions for active employees in these entities and reflects the government’s ongoing commitment to sustaining the retirement benefits framework.
The largest single allocation goes to police formations and commands, with N73.671 billion earmarked for their contributory pension scheme. This forms part of the broader N1.302 trillion budgeted for the Nigeria Police Force, encompassing salaries, pensions, and operational expenses.
The Nigeria Security and Civil Defence Corps (NSCDC) follows with N15.493 billion for pensions, included within its total N244.259 billion allocation for the year.
The Nigeria Correctional Service has been assigned N8.459 billion for pension contributions, as part of its N198.846 billion overall budget.
Smaller allocations appear at the lower end, such as N830,529 for the National Agriculture Development Fund (NADFund) and N1.491 million for the Nurse Tutor Programme in Akoka, Lagos.
This pension funding comes against the backdrop of a robust pension industry in Nigeria, where total assets have now surpassed N25 trillion, ensuring prompt lump-sum payments for new retirees and uninterrupted monthly pensions for over 552,000 existing beneficiaries.
In October 2025, pension assets reached N26.66 trillion, marking a 2.19 per cent month-on-month increase from N26.09 trillion in September and a 21.63 per cent year-on-year rise.
The growth has remained resilient despite macroeconomic pressures including inflation, foreign exchange volatility, and capital market uncertainties, supported by cautious rebalancing into safer, more liquid assets and strong confidence in Federal Government securities.
Federal Government securities continue to dominate the pension portfolio, accounting for 59.86 per cent of total assets at N15.96 trillion, with a 1.35 per cent monthly increase.
Retirement Savings Account (RSA) enrollments also grew steadily from 10.93 million in September to 10.97 million in October, reflecting continued onboarding of formal sector workers and micro-pension participants.
The N334.54 billion allocation in the 2026 budget reinforces the stability of Nigeria’s contributory pension system and signals the government’s priority on meeting retirement obligations even amid broader fiscal constraints.
