Nigeria’s pension industry continued to show resilience in April 2025, as funds under management delivered steady returns across all Retirement Savings Account (RSA) categories, despite ongoing market volatility and macroeconomic uncertainty.
According to performance data tracked by Nairalytics, the research arm of Nairametrics, the country’s Pension Fund Administrators (PFAs) posted an average return of 1.28% for the month, with all four RSA fund types reporting gains.
RSA Fund I, targeted at aggressive investors, led the pack, with a 1.39% average return.
RSA Fund II, the default fund for contributors under 50, followed closely at 1.34%, while the more conservative Fund III and Fund IV posted 1.22% and 1.18% respectively.
Best Performing Pension Fund Administrators
For the month of April 2025, Tangerine Apt Pensions emerged as the top performer, recording an impressive 1.83% return across its portfolios and a remarkable 3.45% return in RSA Fund I. This stellar performance positions Tangerine Apt Pensions as a leader in the industry, benefiting from robust management strategies that have significantly outpaced competitors.
Crusader Sterling Pensions came in second, with a strong 1.76% return, driven by gains in RSA Fund II and solid performance across its more conservative funds. Pensions Alliance Limited rounded out the top three, maintaining steady returns with an average of 1.44%.
Several other PFAs recorded notable performances, including Pension Fund Administrators Limited, which posted a 1.15% return, and OAK Pensions Limited, which followed closely with a 1.11% return.
It is important to note that ARM Pension Managers Limited, Guaranty Trust Pension Managers, and Veritas Glanvills Pensions were excluded from the analysis due to invalid or incomplete data.
RSA Fund I performance
RSA Fund I, which targets contributors seeking higher investment returns with its heavy allocation to variable income instruments, was the top performer in April, delivering a return of 1.39%. Tangerine Apt Pensions led this category with an outstanding 3.45% return, followed by FCMB Pensions Limited at 1.67% and Stanbic IBTC Pension Managers Limited at 1.61%.
Out of the 16 participating PFAs, 15 recorded positive returns, while OAK Pensions Limited experienced a slight decline of -0.06%.
- First: Tangerine Apt Pensions – 3.45%
- Second: FCMB Pensions Limited – 1.67%
- Third: Stanbic IBTC Pension Managers Limited – 1.61%
RSA Fund II performance
RSA Fund II, designed for contributors under the age of 50 with a medium-risk appetite, posted an average return of 1.34% in April. Crusader Sterling Pensions topped this category, delivering a remarkable 1.91% return, followed by Norrenberger Pensions with 1.88%. Pensions Alliance Limited came third with a 1.68% return.
- First: Crusader Sterling Pensions Limited – 1.91%
- Second: Norrenberger Pensions – 1.88%
- Third: Pensions Alliance Limited – 1.68%
RSA Fund III performance
RSA Fund III, catering to contributors aged 50 to 60, demonstrated a solid 1.22% return for April, ranking third among the four funds. Crusader Sterling Pensions led the way with an impressive 1.86%, followed by Pensions Alliance Limited with 1.58% and Leadway Pensure PFA Limited with 1.44%.
- First: Crusader Sterling Pensions Limited – 1.86%
- Second: Pensions Alliance Limited – 1.58%
- Third: Leadway Pensure PFA Limited – 1.44%
RSA Fund IV performance
RSA Fund IV, the most conservative option aimed exclusively at retirees, was the least performing category for April, recording an average return of 1.18%. Crusader Sterling Pensions once again led with a 1.65% return, followed by OAK Pensions Limited at 1.31% and Pensions Alliance Limited with 1.29%.
- First: Crusader Sterling Pensions Limited – 1.65%
- Second: OAK Pensions Limited – 1.31%
- Third: Pensions Alliance Limited – 1.29%
Backstory: Pension fund assets and investments
As of February 2025, according to the data released by PenCom, Nigeria’s pension fund assets reached N23.27 trillion, reflecting a 1.77% increase from N22.86 trillion in January 2025. Despite prevailing economic challenges, this growth recorded in February, alongside the performance of the Pension Fund Administrators (PFAs) reviewed in this article, underscores the resilience and stability of the pension industry.
The portfolio breakdown shows that Federal Government of Nigeria (FGN) securities remain the dominant asset class, accounting for 62.18% of total assets, amounting to N14.47 trillion. Corporate debt securities and money market instruments represent 10.01% and 9.51% of the portfolio, respectively.
Investments in domestic equities rose to N2.58 trillion, or 11.10% of total assets, while mutual funds contributed a modest 0.36%, totaling N84.76 billion.
RSA registrations and fund distribution
As of February 2025, total RSA registrations stood at 10.65 million, a 3.82% increase from the previous year. RSA Fund II, the default fund for active contributors, remained the largest by Net Asset Value (NAV), holding N9.62 trillion, or 41.33% of total assets. RSA Fund III, which serves contributors aged 50 and above, rose to N6.06 trillion, while Fund IV, catering to retirees, grew by 2.25% to N1.71 trillion.
This growth reflects the increasing participation in the contributory pension scheme and the continued expansion of Nigeria’s pension industry, which remains resilient despite broader economic challenges.
