Nigeria’s pension fund assets continued their steady climb, reaching N24.63 trillion in June 2025 — a 2.17% increase from N24.11 trillion recorded in May and a 20.24% rise year-on-year. This growth reflects strong investor confidence, better market performance, and strategic asset shifts by Pension Fund Administrators (PFAs), especially into domestic equities and Federal Government securities.
The figures, released by the National Pension Commission (PenCom), offer a detailed view of how the pension industry is adapting to economic trends and pursuing long-term value creation.
Key Investment Highlights
Equities on the Rise
- Domestic equities surged by N333.05 billion (up 12.12%) to N3.08 trillion, contributing 12.5% of total pension assets — one of the strongest monthly performances so far in 2025.
- This performance was largely driven by bullish activity on the Nigerian Exchange (NGX), solid corporate earnings, and increased investor risk appetite.
- Foreign equities rose slightly by 0.95% to N292.78 billion, reflecting cautious optimism amid global uncertainties.
Dominance of FGN Securities
- FGN securities remained the backbone of the industry, making up over 61% of total pension assets, increasing by N232.96 billion (1.56%) to N15.19 trillion.
- Key segments included:
- FGN Bonds (HTM): Up 0.91% to N12.79 trillion (51.9% of total assets)
- Treasury Bills: Rose 3.24% to N624.15 billion
- Green Bonds: Jumped 361.15% to N10.71 billion
- Sukuk Bonds: Grew 3.21% to N89.64 billion
- Agency Bonds: Fell 5.50%
Despite minor setbacks in some areas, FGN securities remain the most trusted and liquid investments in the pension portfolio.
Mixed Performance in Corporate Debt
- Corporate debt securities fell by 1.26% to N2.26 trillion, with all subcategories experiencing losses:
- Corporate Bonds (HTM): -1.02%
- Infrastructure Bonds: -1.48%
- Corporate Bonds (AFS): -1.86%
- However, corporate debt still makes up 9.19% of the total pension assets, showing a moderately cautious private sector investment approach.
Money Market and Alternatives
- Money market instruments dropped by 3.16% to N2.24 trillion, as PFAs shifted towards higher-yielding assets.
- Fixed deposits: Down 7.10%
- Commercial Papers: Up 32.98% to N342.65 billion
- Foreign instruments: Fell 24.69%
Alternative Investments
- Mutual Funds: Down 0.10% to N183.82 billion
- Open/Close-End Funds: Dropped 1.83%
- Supra-national Bonds: Slight increase of 0.09%
- Real Estate: Down 6.83% to N255.94 billion
- Infrastructure Funds: Rose 5.62%
- REITs: Increased 2.23%
- Cash & Other Assets: Jumped 21.35% to N394.18 billion
Performance by Fund Category
- Fund II (active contributors): Up 2.57% to N10.3 trillion, accounting for over 41% of total assets.
- Fund III (older contributors): Grew by 1.17% to N6.4 trillion.
- Fund I: Rose 3.21% to N329.6 billion.
- Fund IV: Increased 2.14%.
- Micro-pension Funds V & VI: Grew by 3.86% and 2.90% respectively.
- Legacy Schemes & CPFAs: Contributed 12.08% and 10.7%, supporting overall asset growth.
RSA Registration Trends
- RSA membership edged up from 10.76 million in May to 10.80 million in June 2025, reflecting a 4.01% year-on-year growth.
- This steady rise demonstrates continued enrollment into the Contributory Pension Scheme, despite prevailing economic challenges.
Outlook
The June 2025 data underscores the resilience and adaptability of Nigeria’s pension fund industry. With total assets approaching the N25 trillion mark, PFAs are strategically reallocating resources — capitalizing on equity market momentum and the stability of government securities while cautiously retreating from underperforming corporate and money market instruments.
As the year progresses, analysts and stakeholders will closely watch how PFAs respond to interest rate movements, inflation, and regulatory changes to maintain growth and deliver sustained value to Nigerian workers.
