JUST IN: Nigeria’s Pension Assets Hit N23.56 Trillion in April 2025 — Here’s Where the Money Went

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.