Nigeria’s pension fund assets rose to N29.52 trillion in March 2026, reflecting continued growth driven by gains in equities and Federal Government securities.
This is according to the latest data released by the National Pension Commission (PenCom).
The pension fund assets recorded a 0.31% month-on-month rise from N29.43 trillion in February 2026, underscoring steady expansion despite a tight liquidity environment and ongoing portfolio adjustments.
This steady uptick aligns with earlier trends observed in recent Nairametrics reports, where the industry has continued to expand on the back of portfolio rebalancing toward higher-yield assets and sustained contributions, even in a tight liquidity environment.
What the data is saying
The pension industry recorded a modest increase in total assets, supported largely by strong performance in fixed income and domestic equities. Growth in FGN securities and selective asset classes offset declines in money market instruments during the period.
As expected, fixed income securities remained the backbone of pension portfolios, as FGN securities continue to anchor portfolios.
Total investment in Federal Government of Nigeria (FGN) securities rose to N17.14 trillion, up 1.28% MoM, representing a dominant 58.07% of total pension assets.
Within this:
- FGN Bonds (Holding to Maturity) increased modestly by 0.60% to N13.25 trillion, accounting for 44.88% of the total pension asset
- Treasury Bills rose sharply by 7.42% to N1.06 trillion, reflecting improved yields in the short-term debt market.
- Agency Bonds (Nigeria Mortgage Refinance Company & Federal Mortgage Bank of Nigeria) recorded a notable 80.90% surge, climbing to N20.12 billion, albeit from a low base.
- Sukuk Bonds declined by 3.72% to N90.97 billion, suggesting mild portfolio adjustments.
- Green Bonds dipped slightly by 0.52% to N16.90 billion, signaling limited fresh allocation in ESG instruments
- State Government Securities grew modestly by 1.17% to N373.31 billion.
A closer look at asset allocation shows pension fund administrators continued to show confidence in local equities, suggesting that PFAs are leaning more toward domestic opportunities, influenced by currency considerations and attractive local equity returns.
- Domestic ordinary shares rose marginally to N5.46 trillion, up 0.96%, accounting for 18.50% of total assets, while it rose 27.30% from the beginning of the year to date.
- In contrast, foreign equities declined by 5.89% to N246.56 billion, reducing their share to just 0.84%.
Corporate fixed income instruments recorded overall marginal changes as total corporate debt securities slipped slightly by 0.02% to N2.25 trillion.
- Corporate bonds (HTM) rose by 0.88%, reflecting stable long-term positioning
- Corporate bonds (AFS) declined by 2.02%, indicating some mark-to-market or reallocation effects.
- Notably, Corporate green bonds surged 49.72%, though still negligible at 0.01% of assets.
Liquidity management tightens as investments in money market instruments declined by 6.99% to N2.55 trillion (8.65% of total assets), driven by declines in fixed deposits and commercial papers. Within this:
- Fixed deposits fell by 6.16% to N2.34 trillion
- Commercial papers dropped sharply by 21.54% to N164.17 billion
- Foreign money market instruments increased by 18.59% to N45.71 billion, albeit from a low base.
The decline suggests ongoing portfolio rotation away from short-term instruments toward higher-yielding long-duration assets such as bonds and equities.
More Insight
One of the strongest growths in March came from pooled investment vehicles as mutual fund holdings jumped 34.05% to N341.79 billion, largely driven by Real Estate Investment Trusts, which expanded by 120.88% to N171.48 billion.
However, not all sub-categories performed equally:
- Open/close-end Funds declined by 3.96% to N170.30 billion
- Infrastructure Funds dropped significantly by 25.26% to N224.23 billion
- Real Estate increased marginally by 0.25% to N169.94 billion
- Private Equities rose by 0.43% to N259.42 billion
- Cash & Other Assets increased by 3.17% to N463.17 billion
The surge in REITs suggests renewed interest in real estate-linked instruments, possibly driven by inflation-hedging considerations.
What you should know
Key industry indicators show continued expansion in contributors and fund categories, with mid-risk funds maintaining dominance across the pension landscape.
- RSA registrations increased to 11.18 million, up 0.44% from 11.13 million in February, while micro pension participation rose by 26.53% to 91,399 contributors.
- Fund II remained the largest category at N12.59 trillion despite a 0.58% decline, while Fund III grew by 0.97% to N7.53 trillion.
- Fund IV rose by 1.53% to N2.34 trillion, and Fund I recorded a 3.46% increase to N560.18 billion.
- Fund V posted the highest growth at 254.31%, albeit from a low base, while CPFAs declined slightly by 0.94% to N2.74 trillion.
These figures highlight sustained participation growth and continued investor preference for moderate-risk pension fund options.
What this means
The March 2026 data reinforce key structural trends shaping Nigeria’s pension industry, particularly around asset allocation and long-term investment strategy. Despite modest growth, the industry continues to demonstrate resilience amid evolving market conditions.
- Fixed income instruments, especially FGN securities, remain the anchor of pension portfolios, accounting for over 58% of total assets, providing stability and predictable returns.
- Declines in money market instruments alongside growth in equities, REITs, and mutual funds suggest active portfolio reallocation.
- The sharp increase in REITs and growth in private equity allocations indicate PFAs are diversifying beyond traditional instruments.
Despite a modest 0.31% monthly growth, the pension industry continues to expand steadily, supported by contributions and market performance.
