Equities eligible for pension fund investment on the Nigerian Exchange (NGX) delivered robust returns in 2025, with the NGX Pension Broad Index posting a 59.72 per cent gain, surpassing the broader market as measured by the NGX All-Share Index.
Data from the Exchange showed that the Pension Broad Index closed the year at 2,917.84 points, up from 1,826.89 points at the end of 2024. By comparison, the All-Share Index recorded a 51.19 per cent increase over the same period, underscoring the stronger performance of pension-compliant stocks.
The NGX Pension Broad Index tracks equities that meet the investment eligibility criteria set by the National Pension Commission (PenCom), serving as a key benchmark for Pension Fund Administrators seeking to combine regulatory compliance with competitive returns. The index comprises a diversified mix of equities across financial services, telecommunications, consumer goods, industrials, and energy, a broad sectoral exposure analysts say supported performance amid strong market activity and improving investor sentiment.
The index’s 2025 outperformance, exceeding the All-Share Index by more than 850 basis points, reinforces the potential of pension-compliant equities to deliver strong, risk-adjusted returns over time. Market observers noted that the trend reflects the growing influence of pension assets in Nigeria’s capital market and highlights the importance of transparent, rules-based indices in shaping portfolio strategies and long-term retirement planning.
The Nigerian Exchange affirmed its commitment to working with PenCom and Pension Fund Administrators to deepen market participation through education, data analytics, and the development of pension-focused investment products. Analysts say the 2025 performance may encourage more pension assets to flow into equities, supporting market liquidity and long-term growth.