March 17, (THEWILL) — Investments in Federal Government of Nigeria (FGN) securities rose by 16.7 percent, pushing total pension fund assets to about ₦28 trillion, according to the National Pension Commission (PenCom).
The increase reflects sustained allocation to government instruments, as pension fund administrators continue to favour relatively low-risk assets in a high-interest-rate environment.
PenCom data shows that FGN securities remain the largest component of pension portfolios, accounting for a dominant share of total assets.
The growth was largely driven by continued investments in government bonds and treasury bills.
The expansion of pension assets to ₦28 trillion highlights the steady growth of Nigeria’s contributory pension scheme, supported by regular contributions and investment returns.
Analysts note that the strong positioning in FGN securities underscores a cautious investment approach by fund managers, aimed at preserving capital while generating stable income.
However, market experts have reiterated the need for broader diversification into equities and alternative assets to improve long-term yields and reduce concentration risk.
The development further reinforces the role of pension funds as a major source of long-term financing for the government, while supporting stability in Nigeria’s fixed-income market.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
