Pension Assets Soar to ₦24.63 Trillion as Market Gains Lift Nigeria’s Retirement Funds

Nigeria’s pension industry continued its growth momentum in June 2025, with total assets under management reaching N24.63 trillion—a 2.17% increase from the N24.11 trillion recorded in May, and an impressive 20.24% rise compared to the same period in 2024.

This growth is attributed to enhanced investor confidence, proactive asset allocation by fund managers, and improved performance in domestic equity and fixed income markets. These insights are drawn from recent figures published by the National Pension Commission (PenCom).

Domestic equities posted a robust performance in June, adding N333.05 billion (12.12%) to reach N3.08 trillion, and accounting for 12.5% of the total asset base. This marks one of the most significant single-month surges in 2025, driven by bullish sentiment on the Nigerian Exchange (NGX), strong corporate earnings, and a higher appetite for risk among Pension Fund Administrators (PFAs).

Foreign ordinary shares experienced a modest uptick of 0.95%, reaching N292.78 billion, reflecting a cautiously optimistic view of global markets amid continued economic uncertainty.

FGN securities remain the cornerstone of pension fund investments, representing over 61% of total pension assets. These assets rose by N232.96 billion (1.56%) to N15.19 trillion in June.

FGN Bonds (Held-to-Maturity) climbed by 0.91% to N12.79 trillion, making up 51.9% of the entire portfolio.

Treasury Bills rose 3.24% to N624.15 billion.

Green Bonds surged by an impressive 361.15%, jumping from N2.32 billion in May to N10.71 billion in June.

Sukuk Bonds posted a 3.21% increase to N89.64 billion.

However, Agency Bonds dropped by 5.50%, though FGN securities overall continue to offer the most security and liquidity.

On the corporate side, debt instruments declined by 1.26%, settling at N2.26 trillion. Subcategories also fell:

Corporate Bonds (HTM): down 1.02%

Corporate Infrastructure Bonds: down 1.48%

Corporate Bonds (AFS): saw the sharpest fall, down 1.86%

Despite the declines, corporate debt still accounts for 9.19% of total pension assets, indicating selective but ongoing exposure to private sector instruments.

The money market segment saw a contraction of 3.16% to N2.24 trillion, reflecting fund reallocations toward higher-yielding investment classes. Fixed deposits fell 7.10%, while commercial paper gained 32.98% to reach N342.65 billion. Conversely, foreign money market assets saw a steep 24.69% drop.

Investments in Mutual Funds declined by 0.10% to N183.82 billion, as PFAs adopted a cautious stance:

Open/Close-End Funds slipped by 1.83%

Supranational bonds edged up 0.09%

Real Estate assets declined 6.83% to N255.94 billion

Infrastructure Funds rose 5.62%, signalling growing interest in developmental projects

REITs gained a modest 2.23%

Cash and miscellaneous assets jumped 21.35% to N394.18 billion from N324.84 billion in the previous month.

Among various Retirement Savings Account (RSA) funds:

Fund II rose by 2.57% to N10.3 trillion and accounts for 41% of the total portfolio.

Fund III, focused on older contributors, grew by 1.17% to N6.4 trillion, contributing 25.98%.

Fund I increased 3.21% to N329.6 billion.

Fund IV, known for its conservative strategy, rose by 2.14%.

Fund V and Fund VI (targeting micro-pensions) posted gains of 3.86% and 2.90%, respectively.

Legacy schemes and Closed Pension Fund Administrators (CPFAs) contributed 12.08% and 10.7%, respectively, to the total asset pool, reinforcing consistent performance across legacy plans.

RSA subscriber numbers also nudged upward—from 10.76 million in May to 10.80 million in June, reflecting a 4.01% year-on-year increase.

This resilience showcases the sector’s strategic pivot toward more diversified and higher-yielding instruments, even amid economic challenges. Market analysts will closely monitor how PFAs adjust strategies in the face of interest rate trends, inflationary pressures, and potential regulatory reforms in the second half of 2025.