Nigeria’s pension industry continued its steady climb in October 2025, as fund managers navigated a mix of higher fixed-income yields and subdued stock market activity.
Despite the cautious investment mood, most Pension Fund Administrators (PFAs) posted moderate gains across all RSA fund categories.
According to data compiled by the Nairametrics Research team, the overall average return for the industry stood at 1.91% in October, marking a stronger outing compared to 1.24% recorded in September 2025.
Fund I, which caters to younger contributors with higher risk appetites, remained the best performer with an average return of 2.80%. Fund II followed with 1.88%, Fund III averaged 1.58%, while Fund IV — the retirees’ fund — posted the lowest return at 1.40%.
All percentage returns were calculated based on changes in fund unit prices as published by the 17 Pension Fund Administrator on their official website for September and October 2025, as Nigeria Police Force Pensions Limited data was incomplete.
Top Performing PFAs in October 2025
- OAK Pensions Limited topped the chart as the best-performing PFA in October, with an average return of 2.32%. The company delivered strong results across all fund categories, Fund I (3.72%), Fund II (2.28%), Fund III (2.02%), and Fund IV (1.27%). This indicates a well-diversified portfolio as well as strong risk management.
Its consistent exposure to high-yield government securities and quality equities helped it stay ahead of the pack.
- Coming in a close second was Nigerian University Pension Management Company, with an impressive 2.30% average return. The firm led all PFAs under Fund I, delivering a standout 4.65% gain — the highest return across the entire industry.
This performance was fueled by strategic positioning in high-yield bonds and efficient asset allocation.
- CardinalStone Pensions also posted another strong month, ranking third with an average return of 2.26%. The PFA’s 2.79% return under Fund I shows the impact of its data-driven investment strategy and disciplined risk management.
- Pensions Alliance Limited came in fourth with a 2.23% average return, supported by a strong 3.61% gain under Fund I. The firm benefited from its focus on short-term government securities that delivered higher yields during the month.
- Rounding out the top five was Trustfund Pensions Plc, which maintained consistency with an average return of 2.22% and a 3.29% gain under Fund I. The PFA’s disciplined asset mix and cautious approach to capital preservation helped sustain its performance.
Other PFAs that posted above-average returns include:
- Tangerine Apt Pensions – 2.20%
- Norrenberger Pensions – 2.10%
- Guaranty Trust Pension Managers – 2.01%
- NLPC Pension Fund Administrators – 1.91%
- Leadway Pensure PFA Limited – 1.84%
Meanwhile, Crusader Sterling Pensions Limited recorded the weakest overall return at 1.45%, largely reflecting conservative positioning and lower exposure to higher-yield assets.
RSA fund category breakdown
Fund I (Younger Contributors)
Fund I, designed for contributors under 50 with higher risk tolerance, led the market with an average gain of 2.80%. Improved performance in equities supported stronger results across most PFAs.
Top 3 Performers:
- Nigerian University Pension Management Company – 4.65% (rose to N2.0149 per unit)
- NLPC Pension Fund Administrator – 3.81% (rose to N2.1527 per unit)
- OAK Pensions Limited – 3.72% (rose to N2.9337 per unit)
All 17 PFAs recorded a positive return in this Fund category.
Fund II (Default Fund for Most Contributors)
Fund II, which represents the largest share of contributors, recorded a modest 1.88% average growth in October. This reflects cautious investment strategies amid volatile market conditions.
Top 3 Performers:
- CardinalStone Pensions – 2.50% (rose to N4.8205 per unit)
- Leadway Pensure PFA Limited – 2.46% (rose to N8.3722 per unit)
- Tangerine Apt Pensions – 2.45% (rose to N8.1145 per unit)
All PFAs posted positive results in this category, although Crusader Sterling Pensions lagged with 0.92%.
Fund III (Pre-Retirees)
Fund III, tailored for contributors approaching retirement, performed steadily with a 1.58% average return. Stable bond yields and conservative asset allocation drove returns.
Top 3 Performers:
- OAK Pensions Limited – 2.02% (rose to N2.3769 per unit)
- Tangerine Apt Pensions – 1.86% (rose to N2.6664 per unit)
- Trustfund Pensions Plc – 1.85% (rose to N2.3948 per unit)
RSA Fund IV (Retirees)
Fund IV, the most conservative category, posted an average return of 1.40% in October, reflecting gains in fixed-income and money market instruments.
Top 3 Performers:
- Premium Pension Limited – 1.94% (rose to N6.8985 per unit)
- CardinalStone Pensions – 1.92% (rose to N3.8394 per unit)
- Pensions Alliance Limited – 1.60% (rose to N7.1541 per unit)
What you should know
The improvement in pension fund performance during October was largely driven by higher yields in the fixed-income market, which boosted the value of bond holdings across several PFAs.
Equity market activity, though limited, also contributed positively — the NGX All-Share Index (NGX-ASI) gained around 8% month-to-date during the period, providing mild support to portfolio valuations.
Fund I remained the top performer, reflecting its exposure to equities and longer-duration assets, while Fund IV stayed conservative, aligning with retirees’ lower risk appetite.
It is also worth noting that Nigeria Police Force Pensions Limited, which had led in previous months, was excluded from this ranking due to incomplete data for October.
The strong performance by OAK Pensions and Nigerian University Pension Management reflects how effective asset allocation and strategic diversification can deliver value even in uncertain markets.
