Nigeria’s pension fund assets have reached a new high, surging to N22.86 trillion as of January 31, 2025. This marks a 1.55% increase from the N22.512 trillion recorded in December 2024, according to the latest data from the National Pension Commission (PenCom).
Steady Growth Amid Economic Challenges
Despite prevailing economic challenges, the pension industry continues to demonstrate resilience and stability. The sector benefits from strategic asset allocations and a diversified investment approach, fostering confidence among contributors and positioning it for continued expansion within Nigeria’s financial ecosystem.
Investment Portfolio Breakdown
A detailed analysis of the pension fund portfolio shows that Federal Government of Nigeria (FGN) securities remain the dominant asset class, accounting for N14.309 trillion or 62.59% of the total net asset value (NAV). Other significant allocations include:
- Ordinary Shares (Local Companies) – N2.406 trillion (10.53%)
- Corporate Debt Securities – N2.267 trillion (9.92%)
- Money Market Instruments – N2.182 trillion (9.55%)
- State Government Securities – N248.80 billion
This diversified investment strategy aims to balance risk while optimizing returns for pension contributors.
Fluctuations in Money Market Instruments
Money market instruments experienced a marginal month-on-month decline of 1.50%, dropping from N2.215 trillion in December 2024 to N2.182 trillion in January 2025. Within this category:
- Fixed deposits/bank acceptances increased by 1.13%
- Commercial papers fell by 13.33%
- Foreign money market instruments dropped by 26.07%
Meanwhile, investments in state government securities declined by 0.82% to N248.80 billion, whereas supranational bonds saw a substantial rise of 34.09% to N27.851 billion.
Fund Allocation Under the Multi-Fund Structure
Under the Multi-Fund Structure, Fund II, the default Retirement Savings Account (RSA) Fund, remained the largest, holding N9.431 trillion or 41.26% of total NAV. Other key fund allocations include:
- Fund III – N6.014 trillion, up 1.62% from N5.919 trillion in December 2024
- Fund IV – N1.674 trillion, marking a 3.64% increase
Additionally, RSA membership recorded a 0.31% increase, growing from 10,582,299 in December 2024 to 10,615,028 in January 2025.
Year-on-Year Growth and Sector Resilience
On a year-on-year basis, pension fund assets have risen significantly, jumping from N19.530 trillion in January 2024 to N22.861 trillion in January 2025—a 17.05% surge. For context, between 2023 and 2024, pension fund assets grew by N4.156 trillion, from N18.355 trillion to N22.512 trillion.
The sustained rise in pension fund assets is largely driven by increased pension contributions and growing portfolio values, with FGN securities alone expanding from N12.139 trillion in January 2024 to N14.309 trillion in January 2025.
This consistent growth underscores the resilience and long-term sustainability of Nigeria’s pension industry, further strengthening confidence in the sector’s future.