Pension Fund Assets Hit ₦25.9trn as Nigeria Records Strong Year-on-Year Expansion
The National Pension Commission (PenCom) has announced that Nigeria’s pension assets under management have surged to ₦25.9 trillion as of August 2025, marking a 23% year-on-year increase.
This remarkable growth underscores the resilience of Nigeria’s pension industry despite macroeconomic headwinds.
A key driver of this expansion has been continued investment in government securities, particularly Federal Government of Nigeria (FGN) bonds and other fixed-income instruments.
As of August 2025, investments in FGN securities alone climbed to ₦15.7 trillion — a 17% jump year-on-year, with FGN bonds accounting for the bulk of this allocation at ₦13.3 trillion. Equities and money-market instruments also contributed significantly to the growth.
Pension fund holdings in the local stock market rose by 86% YoY to reach ₦3.6 trillion, riding on a bullish performance of the stock exchange.
Meanwhile, money market assets climbed 15% YoY to ₦2.4 trillion, Despite the impressive gains, analysts note that pension assets still represent only about 7.1% of Nigeria’s 2024 GDP, reflecting the relatively low penetration of formal retirement savings across the economy.
The growth trajectory suggests increasing confidence among contributors and pension fund administrators in Nigeria’s retirement system.
With a diversified portfolio spanning fixed income, equities and money-market instruments, the pension industry appears better positioned to deliver long-term value for retirees — though greater coverage and deeper market participation remain critical to fully harness its potential.
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