Nigeria’s pension sector remained strong in May 2025, delivering steady returns across all Retirement Savings Account (RSA) categories, with all funds administrators posting positive returns, despite prevailing market volatility and macroeconomic uncertainties.
Performance data compiled by Nairalytics, the research arm of Nairametrics, revealed that all four RSA fund types posted gains for the month, resulting in an average return of 1.85%.
RSA Fund I, designed for aggressive investors, led the charge with an average return of 2.42%.
RSA Fund II, the default option for contributors under 50, followed closely at 1.97%, while the more conservative RSA Fund III and RSA Fund IV recorded 1.61% and 1.41%, respectively.
Best Performing Pension Fund Administrators
Pensions Alliance Limited led the pack in May 2025, delivering an impressive 2.25% return across its portfolios, with RSA Fund III standing out at 2.18%, though it did not secure the first position in any of the fund categories.
Trustfund Pensions Plc followed closely, posting a 2.23% return.
OAK Pensions Limited rounded out the top three, maintaining steady returns with an average of 2.18%, while dominating RSA Fund I with a 3.89% return.
Other notable performers included Guaranty trust Pension Managers, which recorded 2.16% average returns and topped RSA Fund III with a 2.18% return, and FCMB Pensions Limited, which posted an impressive 2.07% return, leading RSA Fund II. Norrenberger Pensions also delivered a solid 2.04% return.
However, ARM Pension Managers Limited and CardinalStone Pensions (Radix Pension Fund Managers Limited) were excluded from the analysis due to incomplete data.
RSA Fund I performance
RSA Fund I maintained its position as the top-performing pension fund in May 2025, delivering a 2.42% return, driven by its strategic allocation to variable income instruments.
OAK Pensions Limited led the category with an impressive 3.89% return, followed closely by Pensions Alliance Limited at 3.56%, and Trustfund Pensions Plc at 3.54%.
All 17 participating Pension Fund Administrators (PFAs) recorded positive returns, with Tangerine Apt Pensions posting the lowest return at 0.81%.
Top Performers in RSA Fund I
- First: OAK Pensions Limited – 3.89%
- Second: Pensions Alliance Limited – 3.56%
- Third: TrustFund Pensions Plc – 3.54%
RSA Fund II performance
RSA Fund II, tailored for contributors under 50 with a medium-risk appetite, posted an average return of 1.97% in May 2025, reflecting steady performance across the category.
FCMB Pensions Limited led the pack with an impressive 2.67% return, followed by AccessARM at 2.36%, while Stanbic IBTC Pension Managers Limited secured third place with 2.30%.
All 17 participating Pension Fund Administrators (PFAs) recorded positive returns, with Tangerine Apt Pensions posting the lowest at 1.54%.
Top Performers in RSA Fund II
- First: FCMB Pensions Limited – 2.67%
- Second: AccessARM – 2.36%
- Third: Stanbic IBTC Pension Managers Limited – 2.30%
RSA Fund III performance
RSA Fund III, designed for contributors aged 50 to 60, posted a 1.61% return in May 2025, securing its position as the third-best performing fund among the four RSA categories.
Guaranty Trust Pension Managers led the segment with an impressive 2.18% return, followed by FCMB Pensions Limited at 2.01%. Norrenberger Pensions rounded out the top three with 1.91%.
Top Performers in RSA Fund III
- First: Guaranty Trust Pension Managers – 2.18%
- Second: FCMB Pensions Limited – 2.01%
- Third: Norrenberger Pensions – 1.91%
RSA Fund IV performance
RSA Fund IV, the most conservative pension fund tailored exclusively for retirees, posted an average return of 1.41% in May 2025, making it the lowest-performing category among the four RSA funds.
Nigeria Police Force Pensions Limited led the segment with a 1.58% return, followed by Trustfund Pensions Plc at 1.53%, while AccessARM secured third place with 1.52%.
Top Performers in RSA Fund IV
- First: Nigeria Police Force Pensions Limited – 1.58%
- Second: TrustFund Pensions Plc – 1.53%
- Third: AccessARM – 1.52%
Backstory: Pension fund assets and investments
Nigeria’s pension fund assets climbed to N23.27 trillion in March 2025, marking a 0.27% increase from February’s figures, according to the latest data released by PenCom. Despite ongoing economic challenges, this growth—alongside the strong performance of Pension Fund Administrators (PFAs)—reinforces the resilience and stability of the industry.
A breakdown of the portfolio shows that Federal Government of Nigeria (FGN) securities remain the dominant asset class, accounting for 62.09% of total assets, amounting to N14.48 trillion. Corporate debt securities and money market instruments represent 10.07% and 8.91%, respectively.
Meanwhile, investments in domestic equities dipped to N2.57 trillion, or 11.02% of total assets, while mutual funds contributed 0.66%, totaling N154.05 billion.
RSA registrations and fund distribution
As of May 2025, total RSA registrations reached 10.68 million, reflecting a 3.98% increase from the previous year, according to the latest data from PenCom.
RSA Fund II, the default fund for active contributors, maintained its position as the largest by Net Asset Value (NAV), holding N9.65 trillion, which accounts for 41.39% of total pension assets.
RSA Fund III, designed for contributors aged 50 and above, expanded to N6.09 trillion, while RSA Fund IV, catering exclusively to retirees, recorded a 0.86% growth, reaching N1.73 trillion.
