Nigeria’s pension industry continued its steady climb in September 2025, with total pension assets rising to N26.09 trillion, up from N25.90 trillion in August.
The increase represents 0.75% month-on-month growth and a strong 23.44% surge year-on-year, underscoring sustained investor confidence despite mixed capital market conditions.
Fresh figures released by the National Pension Commission (PenCom) show that contributor registration under the Contributory Pension Scheme (CPS) also inched upward, growing 0.42% to 10.93 million, marking continued onboarding of new participants even as economic challenges persist.
FGN Securities still dominate pension portfolios
Government instruments remain the pension industry’s investment anchor, though the numbers were mixed in September.
Total FGN Securities dipped 0.50% to N15.75 trillion, driven largely by:
- FGN Bonds (Held to Maturity) – down 3.37% to N12.84 trillion, and two other categories that posted declines:
- Sukuk – down 5.83%
- Agency Bonds – sharply lower by 18.42%
However, the industry saw notable gains in other government instruments:
- Treasury Bills jumped 2.50% to N616.33 billion
- Green Bonds climbed 7.69% to N13.46 billion
- State Government Securities rose 1.33% to N240.91 billion
Despite these movements, government instruments still account for 60.35% of total pension assets, reflecting the industry’s conservative posture amid inflationary pressure, exchange rate volatility, and macroeconomic uncertainty.
Equity investments showed mild improvement:
- Domestic equities rose 1.47% to N3.66 trillion, representing 14.03% of total assets
- Foreign ordinary shares were almost flat, inching up 0.04% to N277.49 billion
The performance suggests fund managers are gradually increasing exposure to the Nigerian stock market while maintaining a cautious stance.
Notably, total corporate debt securities nudged higher, up 0.12% to N2.24 trillion
- Corporate Bonds (Held to Maturity) gained 1.41% to N1.41 trillion
- Corporate Bonds (Available for Sale) declined 2.29% to N785.39 billion
Corporate debt now accounts for 8.58% of total pension assets, showing slow but positive momentum despite divergent performance across categories.
Money market investments continued to provide stability, rising 0.74% to N2.42 trillion, with key contributors including:
- Fixed deposits and bank acceptances, which grew 6.14% to N1.99 trillion
- Foreign money market instruments, which surged 31.73% to N124.02 billion
- Commercial paper, however, declined 29%, though the segment still accounts for 9.29% of pension assets, supported by attractive short-term yields.
Alternative investment performance
Mutual funds fell 3.32% to N218.98 billion, indicating a more cautious stance by PFAs in these categories
- REITs surged 23.61% to N98.11 billion, reflecting renewed investor interest in real estate-backed securities
- Open/Close-end funds tumbled 17.84% to N120.88 billion
- Private equity declined 4.66% to N260.53 billion
- Real estate assets dipped 4.42% to N243.35 billion
Despite their performance, alternatives still account for just 0.84% of total pension assets, indicating significant growth as the market matures.
Cash positions see sharp expansion
One notable movement in September was the significant jump in cash holdings and other residual assets, which spiked 78.45% to N518.95 billion, now contributing 1.99% of total pension assets. This may reflect tactical shifts toward liquidity amid market swings.
Performance by fund category
Among RSA funds and legacy schemes:
- Fund II, the most popular fund for active contributors, rose marginally at 0.50%, from N10.90 trillion to N10.96 trillion. This fund contributed 42.1% to the total assets, highlighting strong inflows and solid investment returns.
- Fund III (for older contributors) also saw a modest 0.61% rise to N6.73 trillion, contributing 25.82% to the asset portfolio.
- Fund I grew by 1.86% to N396.39 billion, while Fund IV increased by 2.98%, reflecting the conservative nature of its portfolio.
- Fund V and Fund VI (for micro-pensions) recorded moderate growths of 1.79% and 5.76% respectively.
- Existing Schemes and CPFAs contributed by 12.01% and 10.47% to the total asset funds, respectively, reinforcing the growth trajectory across legacy and institutional schemes.
What this means for you
The September 2025 data reinforce a clear narrative that Nigeria’s pension industry remains resilient, expanding assets despite persistent market fluctuations and macroeconomic pressure.
Government bonds continue to dominate due to their relative safety, but the measured rise in equities and REITs indicates growing diversification and a gradual appetite for market-driven returns.
For contributors, this means that the pension assets remain secure and growing; fund managers are tilting portfolios cautiously toward higher-return opportunities.
Also, the system continues to maintain stability even under challenging economic conditions.
Overall, the numbers show a pension sector that is not just sustaining momentum—but evolving.
good works thanks.