Nigeria’s pension fund assets rose to N23.56 trillion in April 2025, up from N23.23 trillion in March—marking a 1.40% month-on-month increase, according to the National Pension Commission (PenCom).
The growth reflects investor confidence and a gradual diversification of portfolio strategies by Pension Fund Administrators (PFAs), even amid ongoing economic challenges.
📊 How the Funds Were Deployed
✅ Federal Government Securities – Still the Core
- Total allocation to FGN instruments climbed 1.76% to N14.65 trillion, accounting for 61.94% of total pension assets.
- FGN Bonds (Held-to-Maturity): +0.53% to N12.46 trillion
- Sukuk Bonds: +8.50% to N96.83 billion
- Agency Bonds (NMRC & FMBN): +8.75%
- Green Bonds: -8.19%
- Treasury Bills: -3.08%
🏛️ State Government Securities
- Slight increase of 1.12% to N252.53 billion, showing modest interest in sub-national debt.
💼 Corporate Debt
- Total corporate bonds dipped 1.38% to N2.32 trillion (9.79% of assets).
- Corporate Bonds (HTM): -4.04% to N1.47 trillion
- Corporate Bonds (AFS): +3.05%
- Infrastructure Bonds: +16.81%
- Corporate Green Bonds: 0% for second consecutive month
💰 Money Market Instruments
- Rose to N2.18 trillion from N2.08 trillion (9.21% of total assets)
- Fixed Deposits: +4.54%
- Commercial Papers: +10.43%
- Foreign MM Instruments: -9.86%
📈 Private Equity & Alternatives
- Private Equity: +40.10% to N230.18 billion — significant signal of increased risk appetite
- Mutual Funds: +16.94% to N180.15 billion
- Open/Closed-End Funds: +24.41%
- Real Estate Investments: +6.18% to N275.08 billion
- REITs: +7.91% to N75.24 billion
- Supra-national Bonds: +1.90%
- Infrastructure Funds: -2.09%
- Cash & Other Assets: -6.44%
📉 Equities: Local vs Foreign
- Domestic Equities: +0.10% to N2.57 trillion
- Foreign Equities: +5.20% to N277.08 billion
- Combined equities now make up 12.05% of total pension assets
🔍 By Fund Category
Fund II (Default for contributors <49 years)
- Largest share: N9.83 trillion (41.54% of assets)
Fund III (Age 50+)
- Rose to N6.20 trillion (26.21%)
Fund IV (Retirees)
- Increased to N1.77 trillion (7.46%)
Fund I (Aggressive contributors <49)
- Up 1.29% to N304.91 billion
Fund V (Micro Pension Plan)
- Slight increase to N1.35 billion
Fund VI (Sharia-compliant)
- Main Fund: N134.48 billion
- Retiree Fund: N12.98 billion
🏢 Closed PFAs & Legacy Schemes
- Closed Pension Fund Administrators (CPFAs): N2.61 trillion (+11.01%)
- Approved Existing Schemes (AES): N2.80 trillion (+11.85%)
🔚 Key Takeaway
April 2025 data shows Nigerian PFAs are cautiously expanding into higher-yielding assets like private equity, infrastructure bonds, and foreign equities—signaling a gradual shift from the traditional safe-haven investments. While FGN securities remain dominant, the increasing diversification highlights a growing appetite for risk-adjusted returns in a high-inflation, low-interest environment.
