Nigeria’s pension assets rose by about 20% in 2025, reflecting steady growth driven largely by gains in domestic equities, Federal Government securities, and selected alternative assets.
The figures are based on pension asset allocation data for January to December 2025.
Total pension assets expanded from N22.86 trillion in January 2025 to N27.45 trillion by December, representing a year-to-date increase of 20.08%, while most asset classes recorded year-to-date increases, the data also shows signs of cautious rebalancing toward year-end as pension funds responded to mixed market conditions.
On a month-on-month basis, assets grew marginally by 1.48% in December from N27.05 trillion in November, pointing to a more defensive posture late in the year.
What the data is saying
Pension assets recorded broad-based growth in 2025, with equities and government securities anchoring portfolio expansion. The year also saw faster growth in smaller asset classes such as mutual funds and infrastructure investments, even as some segments experienced volatility.
- Total pension assets grew by 20.08% year-to-date, rising by N4.59 trillion between January and December 2025.
- Domestic equities surged by 64.36% year-to-date, increasing pension exposure to Nigerian stocks.
- Federal Government securities accounted for 59.5% of total pension assets by December 2025.
- Cash holdings rose sharply toward year-end, reflecting a more cautious investment stance.
Overall, the data points to steady accumulation alongside tactical adjustments as pension fund managers balanced growth opportunities with risk management.
More insights
Equities were one of the strongest contributors to pension asset growth in 2025, supported mainly by domestic stock market performance. Total equity investments increased from N14.31 trillion in January to N16.33 trillion in December, representing a 14.15% year-to-date rise.
- Domestic ordinary shares climbed from N2.41 trillion to N3.96 trillion, accounting for 14.41% of total pension assets by year-end.
- Foreign ordinary shares remained subdued, ending the year at N263.94 billion, down 0.31% year-to-date.
- Month-on-month equity growth was largely flat in December, rising by just 0.05%, suggesting profit-taking after earlier gains.
- Pension exposure continued to tilt toward local equities amid currency and offshore investment considerations.
The performance highlights the growing role of domestic capital markets in driving pension fund returns.
FGN securities still dominate pension portfolios
Federal Government securities remained the backbone of pension portfolios throughout 2025, maintaining the largest share of total assets. Total FGN securities rose from N14.31 trillion in January to N16.33 trillion in December.
- FGN bonds held to maturity grew by 6.21% year-to-date to N12.83 trillion, accounting for 46.75% of total pension assets.
- Treasury bills declined 4.18% year-to-date but rebounded by 12.67% month-on-month in December.
- State government securities increased by 48.91% year-to-date, reaching N370.48 billion.
- Green bonds surged by 507% year-to-date from a low base, while Sukuk bonds declined by 24.67%.
Despite gradual diversification, government securities continued to play a stabilizing role in pension portfolios.
What you should know
Growth in pension assets was not evenly distributed across fund categories, with active RSA funds accounting for most of the expansion in 2025.
- Fund II recorded the largest absolute increase, rising by N2.09 trillion, representing 56% of total pension asset growth in 2025.
- RSA Active funds (Funds I–III) collectively grew by N3.27 trillion, up 20.82% year-to-date, making them the main engine of growth.
- Fund IV (RSA Retiree) expanded by N571.44 billion, reflecting a 34.12% year-to-date increase.
- Non-interest Fund VI was the weakest performer, declining by N748.05 billion over the year.
With total pension assets now firmly above N27 trillion, the industry enters 2026 focused on managing volatility, sustaining real returns, and gradually increasing exposure to productive sectors of the economy.
