November 19, (THEWILL) — Nigeria’s pension fund assets recorded 22.03 percent growth as of the end of the third quarter, rising by more than N4.71 trillion. This is as Pension Fund Administrators deepened their allocation to Federal Government securities, the latest monthly data released by the National Pension Commission has shown.
The figures, contained in PenCom’s latest Monthly Industry Report, indicated that total pension assets increased from N21.38 trillion in September 2024 to N26.09 trillion in September 2025, marking a robust year-on-year expansion of the Contributory Pension Scheme.
Nigeria’s pension fund assets surpassed the N25 trillion threshold in July when they closed at N25.79 trillion. The upward trend continued in August as the funds rose by about N97.88 billion to N25.89 trillion.
The monthly report revealed that Federal Government of Nigeria securities, comprising bonds, Sukuk, treasury bills, and agency securities, remained the dominant asset class for PFAs, accounting for roughly 60 percent of total pension assets.
Between September 2024 and September 2025, PFAs increased their exposure to FGN securities by about N3 trillion, reflecting confidence in Federal Government instruments amid persistent macroeconomic uncertainties.
Beyond government instruments, pension funds significantly increased their participation in the equities market. PenCom’s documents showed that Domestic Ordinary Shares rose sharply by about N1.6 trillion year-on-year, driven by improved market valuations, increased liquidity, and strong investor sentiment.
Corporate debt instruments also received higher allocations, reflecting renewed activity in the corporate bond market and improved credit conditions for highly rated issuers.
On the count of Retirement Savings Accounts, the pension industry also recorded moderate growth, as RSA membership rose to approximately 10.9 million, supported by increased compliance enforcement, onboarding of new private-sector workers, and improved adoption of the rebranded Personal Pension Plan.
In recent times, PenCom has emphasised the need to deepen participation in the Contributory Pension Scheme, especially as it relates to the informal sector, which is where the PPP becomes instructive, hinging on advanced technological innovations.
At the recent Annual Conference of the Pension Correspondents Association of Nigeria, the Director-General, Omolola Oloworaran, said the revamped micro-pension framework is central to closing the country’s wide pension gap.
Oloworaran, who was represented by the Head of Corporate Communications, Ibrahim Buwai, said, “Nigeria’s informal workforce is estimated at between 70 and 80 million people, yet most have no structured retirement savings.”
She also bemoaned the fact that while artisans, traders, gig-economy workers, freelancers, and market operators power the nation’s economy, they remain outside formal pension protection. “For far too long, many of these individuals have had little or no access to structured pension arrangements”, she lamented.
The PenCom DG added that the commission was placing strong emphasis on digitisation to rebuild trust and reduce barriers in the PPP, which is aimed at deepening financial inclusion, mobilising long-term domestic capital, and securing dignified retirement outcomes for millions currently left out.
“Contributors receive instant acknowledgement of their contributions and have real-time access to their statements,” she said, adding that Pension Fund Administrators and Accredited Pension Agents would deploy mobile-friendly, technology-driven solutions to simplify onboarding.
THEWILL reports that the Nigerian Exchange (NGX) Pension Index recorded a robust performance in September – hitting 6,677.28 points on Friday, September 26 – a 17.63 points increase from the 6,659.65 the market closed on August 29, 2025. This is a remarkable performance given the challenging macroeconomic environment that has lingered for a long time.
The NGX Pension index tracks the performance and reflects the dimension of activities in the industry. It is part of the NGX All-Share Index – a benchmark index that mirrors the performance of the Nigerian stock market.
The pension industry showed positive stock performance in the first half of 2025, with total assets under management growing to over N24.6 trillion by June 2025, driven by strong performance in domestic equities and government securities.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
