Nigeria’s total pension fund assets rose to N23.65 trillion as of the end of April 2025, up from N23.33 trillion in March, according to the latest unaudited report from the National PensionCommission (PenCom). The reported figure encompasses all approved pension schemes,including existing contributory pension schemes, closed pension fund administrators,retirement savings account (RSA) funds, and unremitted contributions.
The data highlights a continued strong preference for government-backed securities within
the industry’s investment portfolio. Federal Government securities including FGN bonds,
treasury bills, Sukuk, agency bonds, and green bonds remain the dominant asset class,
accounting for the majority of pension fund investments.
This trend reflects the pension industry’s focus on capital preservation and consistent
returns, as government instruments are generally considered safe and reliable. The
dominance of FG securities also underscores the limited diversification in the current asset
allocation strategy, although it aligns with regulatory guidelines and the risk-averse nature of pension fund management in Nigeria.
PenCom’s monthly reports continue to provide transparency into how pension assets are
managed and allocated, ensuring accountability while offering insights into the evolving
structure of Nigeria’s pension landscape. The steady growth in assets signals increasing
confidence in the pension system and its role in long-term national economic stability.
Despite the continued dominance of Federal Government securities in pension fund
portfolios, the National Pension Commission (PenCom) has urged Pension Fund
Administrators (PFAs) to diversify their investments by increasing exposure to alternative
assets. The call is part of efforts to enhance returns and ensure the long-term sustainability of pension funds.
Speaking at a sensitisation workshop held in Lagos last Thursday for Chairpersons of the
Board Investment Strategy and Risk Management Committees of PFAs, PenCom’s Director-
General, Omolola Oloworaran, highlighted the limitations of over-reliance on government
instruments. She noted that the strong perception of safety and liquidity in FG securities has constrained PFAs from fully tapping into the broader investment potential of pension funds, especially given Nigeria’s youthful and growing population.
Oloworaran emphasised that alternative assets such as infrastructure projects and private
equity can play a vital role in strengthening pension fund strategies. She explained that
these investments serve as a complementary pillar to traditional asset classes, offering
portfolio diversification, alignment with long-term investment horizons, and improved risk-
adjusted returns.
PenCom’s push for diversification reflects a broader strategy to encourage PFAs to adopt
more dynamic and growth-oriented investment approaches, capable of delivering better
outcomes for retirees and contributing more meaningfully to Nigeria’s economic
development.
