Your pension took a hit in June as stocks erased N623 billion

Nigeria’s pension fund industry closed the first half of 2026 with a decline in total assets under management, as a pullback in domestic equities, FGN securities and money market instruments weighed on the overall portfolio, despite growth in alternative investments and selected pension fund categories.

Data from the National Pension Commission (PenCom) showed that total pension assets stood at N30.70 trillion in June 2026, down from N31.32 trillion in May 2026, representing a 1.99% month-on-month decline.

Despite the June decline, the pension industry remained significantly larger than it was a year earlier.

Total pension assets were 24.64% higher year-on-year than the N24.63 trillion recorded in June 2025, indicating that the industry added approximately N6.08 trillion to its asset base compared with the corresponding period of the previous year.

Changes reflect reported month-end asset values published by PenCom. Variations may arise from market valuation changes, portfolio reallocation, new contributions, benefit payments, or a combination of these factors.

What the data is saying

The June performance highlights the mixed investment environment facing pension fund managers, with the portfolio showing declines across several of its largest asset classes, while private equities, corporate infrastructure bonds, open/close-end funds and foreign money market instruments recorded positive monthly movements.

• The data also show that pension assets remained heavily concentrated in FGN securities and Fund II, although both recorded declines during the month.
• The decline in June largely reflected losses in asset values for domestic equities, and lower holdings in several fixed-income asset classes.
• Total pension assets fell from N31.32 trillion in May to N30.70 trillion in June 2026, equivalent to N624 billion, representing a 1.99% month-on-month decline.
• On a year-on-year basis, however, the industry recorded stronger growth, with total assets increasing by 24.64%.

This means that while the pension industry experienced a short-term contraction in June, its longer-term growth trajectory remained positive.

Equity investments record broad-based decline

The decline in June was largely reflected in some of the industry’s biggest asset classes.

• Domestic ordinary shares, which represented 19.24% of total pension assets, declined by 8.76% month-on-month to N5.91 trillion.
• Despite the monthly pullback, domestic equities remained one of the best-performing asset classes over the past year as the asset class posted an impressive 91.74% year-on-year growth.
• Domestic equities accounted for 19.24% of total pension assets, making them the second-largest asset class after Federal Government securities.
• Foreign equity exposure remained relatively stable at N281.8 billion, down marginally by 0.34% month-on-month and 3.75% year-on-year, contributing only 0.92% to overall pension assets.

The decline in domestic equities signals profit-taking activities in the stock market after an extended rally that had significantly boosted pension fund valuations over the last 12 months.

Federal Government securities

FGN securities remained the largest investment broad asset class in the portfolio, accounting for 56.69% of total pension assets in June 2026.

Total investments in FGN securities stood at N17.40 trillion, from N17.48 trillion in May 2026, representing a slight 0.43% decline month-on-month. However, the category remained firmly in positive territory on a year-on-year basis, with holdings rising 14.61%.

• Within the category, FGN bonds held to maturity (HTM) remained the largest single investment class at N13.60 trillion, accounting for 44.31% of total pension assets.
• Holdings in FBN bonds increased by 0.89% month-on-month from N13.48 trillion and were 6.38% higher year-on-year.
• Treasury Bills rose marginally by 0.10% month-on-month to N1.13 trillion and surged 81.33% year-on-year, reflecting sustained interest in short-term government instruments amid elevated yields.
• Agency bonds issued by NMRC and FMBN declined sharply by 50.20% month-on-month, while Sukuk bonds fell by 6.62% during the month.
• Green bonds also declined significantly, falling 52.41% month-on-month to N7.11 million.
• Investments in state government securities declined by 2.28% month-on-month to N353.3 billion, though they remained 46.04% higher than the same period last year.

Together, these movements suggest that pension fund managers were rebalancing within the fixed-income segment rather than exiting government-related securities outright.

Corporate debt securities

Corporate debt securities accounted for 7.20% of total pension assets in June, with holdings falling 2.21% month-on-month to N2.21 trillion. The asset class was also 2.34% lower year-on-year.

• Within the segment, corporate bonds held to maturity accounted for 4.72% of total pension assets and declined by 4.58% month-on-month, although they remained marginally higher by 0.96% year-on-year.
• Corporate bonds available for sale (AFS), representing 2.29% of total pension assets, increased by 1.50% month-on-month but fell 10.89% year-on-year.
• Notably, the strongest monthly performance within the broader corporate debt segment came from corporate infrastructure bonds, which rose by 18.13% month-on-month and was 52.60% higher year-on-year.

This suggests that while overall corporate debt exposure contracted, pension fund managers continued to show interest in infrastructure-linked investment opportunities, particularly those offering long-term returns that align with the duration of pension liabilities.

Money market instruments

Money market instruments accounted for 9.55% of total pension assets in June 2026, with holdings declining by 2.89% month-on-month from N3.02 trillion to N2.93 trillion.

• The decline reflected lower holdings in fixed deposits and bank acceptances, which fell by 2.74% to N2.68 trillion, while commercial paper holdings dropped 7.21% month-on-month and were down 39.03% year-on-year.
• Despite the monthly decline, money market investments remained 31.05% higher than June 2025, reflecting sustained interest in short-term income-generating instruments amid relatively attractive yields.
• Foreign money market instruments bucked the trend, rising 9.76% during the month, although they remained 8.00% lower year-on-year.

The movement suggests pension fund managers holdings in short-term instruments declined to changing market yields and liquidity conditions.

Mutual funds and alternative assets

Mutual fund investments recorded one of the strongest increases in June, rising 6.40% month-on-month to N288.49 billion, representing 0.94% of total pension assets. On an annual basis, holdings were up by 56.94%.

• The growth was driven mainly by open and closed-end funds, which increased 8.46% month-on-month and 60.95% year-on-year, accounting for 0.56% of pension assets.

Other alternative investments also posted positive performances:

• Infrastructure funds rose 3.72% month-on-month and 35.68% year-on-year, accounting for 1.07% of total assets.
• Private equity investments gained 1.90% month-on-month and 14.76% year-on-year, contributing 0.86%.
• REITs increased 3.55% during the month and 51.48% year-on-year, representing 0.38% of pension assets.

It is worth noting that Cash and other assets recorded the strongest monthly growth among all asset classes, rising 34.18% to N534.72 billion in June.

The category accounted for 1.74% of total pension assets and was 35.66% higher year-on-year.

The sharp rise may indicate that some pension fund managers increased liquidity buffers amid market volatility and portfolio rebalancing activities during the month.

Fund category breakdown

The distribution of pension assets across fund categories remained highly concentrated, with Fund II retaining its position as the dominant fund.

However, June data showed that the largest fund categories experienced declines, while smaller categories recorded much stronger growth rates.

• Fund II continued to dominate Nigeria’s pension industry, accounting for 42.66% of total pension assets.
• Assets under the fund declined by 3.68% month-on-month from N13.48 trillion in May to N12.98 trillion in June. However, the fund remained 30.41% higher year-on-year.
• Given its size, the decline in Fund II contributed significantly to the overall drop in total pension assets during the month.

Fund III accounted for 25.49% of total pension assets, making it the second-largest pension fund category.

• Assets declined by 1.63% month-on-month to N7.77 trillion but were still 23.55% higher than a year ago.
• Together, Fund II and Fund III represented 68.15% of total pension assets, underscoring their importance to the industry’s overall performance.
• Assets under existing schemes increased marginally by 0.20% month-on-month to N3.55 trillion, accounting for 11.63% of total pension assets and recording 23.83% annual growth.
• Meanwhile, Closed Pension Fund Administrators (CPFAs) held 9.28% of total pension assets, with holdings declining by 2.02% month-on-month but remaining 3.05% higher year-on-year.
• Fund IV accounted for 7.94% of total pension assets and grew by 0.71% month-on-month. The fund also posted a strong 35.72% year-on-year growth, highlighting continued asset accumulation within the category.

Although they account for a relatively small share of industry assets, Funds V and VI continued to record the strongest growth rates.

• Fund V rose 22.97% month-on-month and 418.73% year-on-year.
• Fund VI increased 3.29% month-on-month and 141.33% year-on-year.
• Fund VI Retiree gained 2.92% month-on-month and 100.07% year-on-year.

What you should know

The number of Retirement Savings Account (RSA) registrations continued to grow despite the decline in asset values.

• RSA registrations increased from 11.27 million in May to 11.32 million in June 2026, representing a 0.41% month-on-month increase and 4.81% year-on-year growth.

The steady increase in contributors remains a positive indicator for the long-term growth of the pension industry, as new inflows continue to support asset accumulation over time.