Nigeria’s pension industry began 2026 on a steady ground, with total assets under management (AUM) climbing to N28.04 trillion in January 2026.
This marks a 2.11% increase from N27.46 trillion in December 2025 and a 22.64% jump compared to N22.86 trillion in January 2025, according to data from the National Pension Commission (PenCom).
The numbers show that the sector is resilient despite ongoing macroeconomic challenges.
The repeated pattern remained unchanged, in which pension managers are heavily invested in fixed‑income products, which are dominated by federal government securities.
What the data is saying
The industry added roughly N589 billion in one month, extending the growth trend seen throughout 2025. The industry recorded N22.86 trillion in January 2025, increasing to N27.46 trillion in December 2025 and N28.04 trillion in January 2026.
However, asset growth is being driven more by higher yields on government securities than by broad-based equity gains. In a high-interest-rate environment, fixed income has become a boost for portfolio performance.
FGN instruments remain the backbone of Nigeria’s pension portfolio, recording a total of N16.70 trillion, contributing 59.55% to the total pension assets. All the securities in the FGN category recorded gains.
- FGN Bonds (HTM): N13.16 trillion (46.95%)
- Treasury Bills: N894.1 billion (3.19%)
- Agency Bonds (NMRC & FMBN): N9.68 billion (0.03%)
- Sukuk Bonds: N95.09 billion (0.34%)
- Green Bonds: N18.30 billion (0.07%)
- State Government Securities: N371.06 billion (1.32%)
Treasury bills recorded a notable 17.48% month-on-month increase, reflecting improved yields and stronger positioning in short-term instruments.
What you should know
Money market instruments rose to N2.75 trillion, accounting for 9.82% of total assets.
Within this category:
- Fixed Deposits/Bank Acceptances: N2.48 trillion (+9.63% MoM)
- Foreign Money Market Instruments: N54.53 billion (+9.39% MoM)
Conversely, Commercial Papers recorded N213.79 billion, a 30.36% decline from N306.99 billion posted in the previous month, suggesting selective risk reduction.
Corporate debt securities stood at N2.24 trillion, representing 7.98% of pension assets. This is a marginal increase of 1.43% from N2.20 trillion in the previous month.
Key movements include:
- Corporate Bonds (HTM): N1.45 trillion, up 3.69%)
- Corporate Bonds (AFS): N715.88 billion, down 6.71%
- Corporate Infrastructure Bonds: N67.42 billion, up 81.30%, signaling increasing appetite for structured long-term projects.
Equity instruments remained modest when compared with the allocation to fixed‑income instruments.
- Domestic ordinary shares stood at N4.29 trillion, representing 15.30% of total assets, and increased by 8.47% month‑on‑month. This uptick reflects the improved stock market performance toward the end of the previous year.
- Foreign ordinary shares closed at N262.99 billion, accounting for 0.94% of assets after a 0.36% monthly decline.
The overall equity allocations remain conservative, consistent with the pension industry’s focus on capital preservation.
Alternative Assets and Others
Other asset classes recorded the following:
- Real Estate: N170.04 billion, down 0.42%
- Private Equity: N241.85 billion, up 1.39%
- Infrastructure Funds: N292.32 billion, up 3.61%
- REITs: N110.47 billion, down 1.76%
- Cash & Other Assets: N450.44 billion, down 39.70%
The significant drop in cash holdings suggests portfolio reallocation into higher-yielding instruments during the month.
RSA fund category breakdown
The Retirement Savings Account (RSA) breakdown shows Fund II continue to dominate, recording N11.86 trillion, up 2.94%, contributing 42.29% to the total pension assets.
This reflects the large base of active contributors in the mid-risk default category.
- Fund III: N7.19 trillion (25.64%)
- Fund IV: N2.27 trillion (8.11%)
- Fund I: N476.62 billion (1.70%)
- Fund VI: N229.53 billion (0.82%)
- Fund VI Retiree: N24.68 billion (0.09%)
- CPFAs: N2.70 trillion (9.62%)
- Existing Schemes: N3.29 trillion (11.73%)
Meanwhile, RSA registrations rose to 11.08 million, indicating gradual expansion of formal participation.
What this means
The pension industry remains heavily supported by sovereign assets, with almost 60% of total funds invested in federal government securities.
- High interest rates are shaping allocation decisions, driving growth in fixed deposits and Treasury bills.
- As equity exposure is gradually increasing, it still plays a secondary role relative to fixed‑income holdings.
- Overall, the pension industry continues to show stability.
Asset growth has been steady, risk management remains cautious, and contributors’ funds are largely protected from sharp market swings.
In a period shaped by policy changes, FX reforms, and shifting market conditions, stability has become the feature that stands out in the sector.
