By Chibuzor Alli
Parthian Pensions Limited has called for a shift from pension asset growth to retirement income security, warning that inflation and rising living costs are eroding the real value of Nigerians’ savings.
Nigeria’s pension industry must prioritise the purchasing power of retirees over headline asset growth, Parthian Pensions Limited has said, as pension assets surpass ₦31.80tn amid persistent economic pressures.
The pension fund administrator made the call at its 2026 Stakeholders’ Forum in Lagos, where industry leaders stressed the need to ensure that decades of contributions translate into financial independence and dignity in retirement.
The forum, themed ‘Driving Pension Innovation in a Digital Age,’ focused on expanding pension coverage, improving retirement income adequacy and leveraging technology to reach workers outside the formal economy.
Speaking at the event, the Managing Director and Chief Executive Officer of Parthian Pensions, Olufemi Odukoya, said the industry must confront the challenge of protecting contributors’ savings from macroeconomic pressures while widening access to pension services.
“Despite the growth of the pension industry into one of Africa’s major financial-sector reforms with N31.80tn in assets under management, persistent macroeconomic pressures continue to erode the real value of accumulated benefits”, Odukoya said.
He noted that the industry’s expanding responsibilities, driven by evolving market conditions and regulatory requirements, demand practical solutions to longstanding structural challenges.
Odukoya also highlighted the millions of Nigerians who remain outside the formal pension system, calling for more accessible retirement savings options.
“Pension coverage remains a major concern. Millions of Nigerians remain outside the formal pension system, highlighting the need to explore ways to expand participation and make retirement savings more accessible,” he said.
Beyond increasing participation, he urged pension fund managers to assess whether contributors’ accumulated balances would provide adequate income to sustain them through retirement, particularly in an inflationary environment.
The Executive Director of Operations and Governance at Parthian Financial Services Limited, Olawunmi Abiodun, warned that rising pension balances do not necessarily translate into stronger retirement security.
“A pension balance may increase on paper while its real value declines because of inflation,” Abiodun said.
She stressed that pension administrators have a responsibility to protect the long-term financial wellbeing of contributors whose savings represent decades of hard work.
“We are entrusted with people’s hard-earned money, accumulated over decades of work, with the expectation that those savings will provide financial security when they are no longer able, or no longer wish, to work,” Abiodun added.
She said retirement should offer independence rather than financial reliance on family members.
“The goal of retirement should not be to depend on our children for sustenance. It should be to have the financial independence to live with dignity, meet our needs and, hopefully, enjoy the years after our working lives.”
Digital innovation seen as key to pension inclusion
Stakeholders at the forum identified digital technology as a critical tool for extending pension coverage to artisans, farmers, freelancers and micro-entrepreneurs whose earnings may be irregular.
They said automation, data analytics, artificial intelligence and digital payment integrations could simplify contributions, improve record-keeping and give workers clearer projections of their retirement benefits.
However, industry experts cautioned that technology must address operational inefficiencies rather than simply replicate existing processes digitally.
They concluded that the next phase of pension reform should deliver broader participation, more consistent contributions and better retirement outcomes, ensuring that Nigeria’s growing pension assets translate into lasting financial security for retirees.
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