Nigeria’s pension fund assets continued their upward climb in May 2025, reaching N24.10 trillion, according to fresh data from the National Pension Commission (PenCom). This marks a 1.91% month-on-month increase from April’s total of N23.65 trillion.
The growth was fueled by new Retirement Savings Account (RSA) registrations, steady investment income, and deliberate reallocation of assets across both fixed-income and alternative investment classes—despite ongoing economic challenges.
Asset Allocation Snapshot
FGN Securities Lead the Pack
Federal Government of Nigeria (FGN) securities remain the bedrock of pension investments, climbing 2.04% to N14.95 trillion, and making up 62.06% of total assets.
- FGN Bonds (Held-to-Maturity): Rose 1.73% to N12.67 trillion — the largest single asset class (52.56% of Net Asset Value).
- Treasury Bills: Increased 5.15% to N604.59 billion, indicating a pivot to short-term instruments.
- Green Bonds: Marginal rise of 0.74% to N2.32 billion.
- Agency Bonds and Sukuk: Declined by 14.66% and 10.31% respectively, showing reduced demand.
- State Government Bonds: Fell by 3.07%.
Corporate & Money Market Instruments – Mixed Signals
- Corporate Debt: Slipped 0.98% to N2.29 trillion (9.51% of total assets).
- Money Market Instruments: Gained 6.07% to N2.31 trillion, the highest month-on-month rise.
- Fixed Deposits & Bank Acceptances: Jumped 7.58% to N1.96 trillion.
- Commercial Papers: Dropped 6.78% to N257.67 billion.
- Foreign Money Market Instruments: Surged 19.22% to N68.97 billion — the sharpest monthly increase.
Equities & Alternative Assets – Risk Appetite Grows
- Domestic Equities: Grew 6.78% to N2.75 trillion (11.40% of NAV), reflecting renewed investor confidence in Nigerian stocks.
- Foreign Equities: Rose 4.67% to N290 billion, suggesting growing diversification into global markets.
- Mutual Funds: Up 2.13% to N183.99 billion, driven by open/closed-end funds.
- Infrastructure Funds: Slight increase to N229.88 billion (+0.36%).
- REITs: Improved by 1.15%.
- Cash & Other Assets: Declined significantly by 30.88%, as PFAs moved away from idle capital.
RSA Registrations & Fund Distribution
As of May 2025, RSA enrollment hit 10.76 million, up from 10.72 million in April.
- Fund II: Dominates with N10.04 trillion (41.65% of total assets), catering to contributors under 49.
- Fund III: Grew to N6.32 trillion (26.24%), primarily for contributors aged 50+.
- Fund IV (Retirees): N1.79 trillion (7.42%).
- Fund I (Aggressive investors): Rose 4.73% to N319.34 billion.
- Fund V (Micro Pensions): Inched up to N1.41 billion, supporting informal sector workers.
Legacy Schemes Hold Steady
- Closed Pension Fund Administrators (CPFAs): N2.62 trillion (10.80%).
- Approved Existing Schemes (AES): N2.85 trillion (11.81%).
What This Means
The data underscores a balanced yet cautious strategy by Pension Fund Administrators (PFAs), who continue to rely on government securities for stability while slowly increasing exposure to equities, foreign markets, and alternative investments.
The strong performance in foreign assets and private market-linked funds suggests that PFAs are preparing for persistent inflation and low interest rates by seeking higher returns in non-traditional asset classes. With pension coverage and assets expanding, the industry appears well-positioned for more robust diversification in the months ahead.
