Nigeria’s pension fund assets surged to N23.26 trillion in February, according to the latest data from the National Pension Commission (PenCom).
This marks a 1.77 percent increase from the N22.86 trillion reported in January 2025, further highlighting the continuous growth and stability of the country’s pension industry. The growth, while notable on a month-to-month basis, also points to a more significant trend—one of steady, long-term development supported by sound investment strategies.
The most recent figures reveal that the total net asset value (NAV) of the pension fund has experienced a remarkable year-on-year growth of 17.75 percent, rising from N19.75 trillion in February 2024 to N23.26 trillion in February 2025. In the span of just over a year, Nigeria’s pension assets have grown by N3.51 trillion. This consistent upward trajectory is a testament to the strategic management of the nation’s retirement savings, reflecting both an increase in contributions and a strong return on investments. Since 2023, the pension fund’s assets have expanded by N4.91 trillion, rising from N18.36 trillion to N23.26 trillion, bolstered by prudent asset allocation and a diversified investment approach.
At the heart of this growth is the continued strong performance of Federal Government of Nigeria (FGN) securities, which have remained a cornerstone of pension fund investment. As of February 2025, FGN securities account for N14.46 trillion—representing a substantial 62.18 percent of the total NAV—indicating strong investor confidence in government-backed instruments.
This is a notable increase from the N12.37 trillion recorded in February 2024.
Over the past year, the value of FGN securities has increased by over N2 trillion, reflecting their vital role in supporting the growth of the pension fund.
The pension industry’s diversified portfolio also includes other investments that have contributed significantly to the fund’s overall performance. Investments in ordinary shares of local companies rose to N2.58 trillion in February, up by 7.33 percent from January’s value of N2.40 trillion. This uptick signals a positive shift towards equities, particularly in the local market, which continues to offer attractive returns for long-term investors. Corporate debt securities also showed strong performance, amounting to N2.32 trillion, while money market instruments grew slightly to N2.21 trillion from N2.18 trillion in January, indicating a steady recovery in this asset class. Furthermore, investments in foreign equities remained stable at N267.72 billion, reflecting a measured approach to international diversification within regulatory boundaries.
However, not all asset classes saw gains in February. State government securities experienced a minor decline of 0.85 percent, bringing their value down to N246.69 billion. Likewise, investments in supranational bonds saw a significant drop of 29.76 percent to N19.56 billion, and mutual funds also witnessed a decline, falling by 9.08 percent to N84.76 billion. Cash and other assets saw a reduction of 7.72 percent, dropping to N399.51 billion. Despite these setbacks, the overall performance of the pension fund remains strong, with the gains in other sectors more than compensating for the declines.
The continued growth of Nigeria’s pension system is further reflected in the allocation of assets within the Multi-Fund Structure. Fund II, which serves as the default fund for the majority of Retirement Savings Account (RSA) holders, remains the largest of the active RSA funds, with an asset value of N9.61 trillion, representing 41.33 percent of the total NAV. This fund continues to offer a solid foundation for retirement savings, contributing to the financial security of millions of Nigerians. Fund III also showed a slight increase, rising by 0.74 percent to N6.05 trillion, securing its position as the second-largest fund.
The number of RSA members has also seen steady growth. As of February 2025, the total number of RSA holders increased to 10,650,990, up from 10,615,028 in January 2025. This 0.34 percent growth reflects a consistent rise in pension plan participation, further demonstrating public confidence in the pension system.
This growth in both assets and membership highlights the strength of Nigeria’s pension industry and its increasing importance in the nation’s financial landscape.
With continued contributions and a well-managed investment portfolio, the pension fund is set to play an even greater role in supporting the financial well-being of the country’s workers. The recent performance of the pension assets further reinforces confidence in the system’s resilience and long-term sustainability, providing a solid foundation for future growth and financial stability. The Nigerian pension sector continues to evolve as a beacon of stability, protecting and securing the future of millions of Nigerian workers and retirees alike.
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