The Nigerian pension industry witnessed varied performances across different Retirement Savings Account (RSA) funds in March 2025, as sixteen Pension Fund Administrators (PFAs) posted an average return of 0.85% for the month.
According to data compiled and analyzed by Nairalytics, the research arm of Nairametrics, Crusader Sterling Pensions Limited, NLPC Pensions Limited, and OAK Pensions Limited emerged as the top-performing PFAs for the month under review.
The Nigerian pension sector has seen remarkable growth in recent years, with PFAs striving to deliver competitive returns amid evolving market conditions.
A breakdown of the performance data reveals that RSA IV funds led the way with a return of 1.15%, followed by RSA III funds, which recorded 0.92%. Meanwhile, RSA II funds registered returns of 0.69% and 0.58%, respectively.
The latest performance underscores the importance of strategic fund management in navigating market dynamics as contributors seek optimal returns on their retirement savings.
The latest monthly performance data reveals an interesting trend that aligns with the fundamental principle of investing: the risk-return tradeoff. This concept suggests that investments with higher risk levels tend to generate higher returns, while those with lower risk levels typically yield lower returns.
Best performing pension fund administrators by RSA accounts
Pension Fund Administrators (PFAs) in Nigeria recorded another month of steady performance across the various Retirement Savings Account (RSA) fund categories in March 2025.
Based on the latest analysis, Crusader Sterling Pensions Limited emerged as the top-performing PFA for the month, posting an average return of 1.23%. NLPC Pension Fund Administrators Limited followed closely with 1.15%, while OAK Pensions Limited secured the third spot with 1.11%.
It is worth noting that ARM Pension Managers Limited, Leadway Pensure PFA Limited, and CardinalStone Pensions (Radix Pension Fund Managers Limited) were excluded from this analysis due to invalid data.
Among the four RSA funds, Fund IV emerged as the best-performing category, followed by Fund III, while Fund II came in third based on average returns for the month, and Fund I as the least performing fund category.
RSA Fund I performance
RSA Fund I, known for its high allocation to variable income instruments (ranging between 20% and 75%), recorded an average return of 0.58% in March 2025, making it the least-performing fund for the month. This fund is designed for contributors seeking higher investment returns, but it remains inaccessible to retirees and active contributors aged 50 and above unless formally requested.
Among the PFAs, NLPC Pension Fund Administrators Limited led the RSA Fund I category with an impressive 1.58% return. Crusader Sterling Pensions Limited followed with a 1.41% gain, while Fidelity Pension Managers Limited rounded out the top three with a 1.19% return.
Out of the participating PFAs, 13 recorded positive returns, while 3 PFAs posted negative returns for RSA Fund I in March 2025.
- First: NLPC Pension Fund Administrators Limited – 1.58%
- Second: Crusader Sterling Pensions Limited – 1.41%
- Third: Fidelity Pension Managers Limited – 1.19%
RSA Fund II performance
RSA Fund II serves as the default fund for RSA holders aged 49 years and below. Designed for contributors with a medium-risk appetite, the fund adopts a balanced investment approach with reduced exposure to variable income instruments compared to Fund I.
In March 2025, RSA Fund II delivered an average return of 0.69%, ranking third among the four fund categories. However, several PFAs outperformed this benchmark, with Crusader Sterling Pensions Limited leading the pack at 1.13%.
- First: Crusader Sterling Pensions Limited – 1.13%
- Second: NLPC Pension Fund Administrators Limited – 1.09%
- Third: Stanbic IBTC Pension Managers Limited – 1.05%
RSA Fund III performance
Targeted at contributors aged 50 to 60 years, RSA Fund III is a more conservative option for those approaching retirement or seeking reduced risk. Despite its lower risk profile, Fund III posted impressive returns in March, with an average gain of 0.92%, making it the second-best performing fund category.
Guaranty Trust Pension Managers emerged as the top performer in this category, posting a 1.20% return. Crusader Sterling Pensions Limited and Fidelity Pension Managers Limited followed closely, both achieving 1.13%.
- First: Guaranty Trust Pension Managers -1.20%
- Second: Crusader Sterling Pensions Limited – 1.13%
- Third: Fidelity Pension Managers Limited – 1.13%
RSA Fund IV performance
RSA Fund IV, which is exclusively available to retirees, was the best-performing fund category in March 2025, delivering an average return of 1.15%.
The standout performer in this category was OAK Pensions Limited, which posted a remarkable 1.32% gain. Fidelity Pension Managers Limited and Crusader Sterling Pensions Limited also delivered strong results, with returns of 1.27% and 1.24%, respectively.
- First: OAK Pensions Limited – 1.32%
- Second: Fidelity Pension Managers Limited – 1.27%
- Third: Crusader Sterling Pensions Limited – 1.24%
Breakdown of industry investment
Nigeria’s pension fund assets rose to N22.86 trillion as of January 31, 2025, marking a 1.55% increase from N22.512 trillion recorded at the end of December 2024, according to the latest data released by the National Pension Commission (PenCom).
The January 2025 monthly report, obtained by Nairametrics, highlights the continued resilience and steady expansion of the pension industry despite prevailing economic headwinds.
The breakdown of the pension fund portfolio reveals that Federal Government of Nigeria (FGN) securities remained the most significant asset class, accounting for N14.309 trillion, representing 62.59% of the total Net Asset Value (NAV).
In addition, corporate debt securities attracted N2.25 trillion, or 9.92% of the fund’s total assets, while money market instruments accounted for 9.55%, valued at N2.18 trillion.
Investments in domestic equities through local stockbroking firms stood at N2.24 trillion, making up 10.53% of the overall fund. Meanwhile, mutual funds contributed N93.22 billion, representing a modest 0.41% share of the pension assets.
On the membership side, total RSA registrations rose to 10.61 million as of January 2025, compared to 10.22 million in January 2024. This reflects a 3.83% year-on-year increase, indicating sustained interest and participation in the contributory pension scheme.
Furthermore, as of January 2025, RSA Fund II—the default fund for active contributors under the Multi-Fund structure retained its position as the largest fund by Net Asset Value (NAV), accounting for N9.431 trillion or 41.26% of total industry assets.
Fund III, which caters to contributors aged 50 and above, recorded a modest uptick of 1.62%, rising to N6.014 trillion from N5.919 trillion in December 2024. Meanwhile, Fund IV, the retiree-focused fund, saw a stronger growth trajectory, expanding by 3.64% to N1.674 trillion over the same period.
