Nigeria’s Pension Fund Administrators (PFAs) have increased their equity investments by 40% in just one year, reflecting the growing confidence in the stock market.
Between July 2023 and July 2024, equities surged from N1.54 trillion to N2.16 trillion, thanks to the Nigerian stock market’s strong performance, with the NGX All Share Index rising by 33.81%.
Private equity investments also saw impressive growth, jumping by 70% within the same period, highlighting opportunities in high-growth sectors.
Pension assets in Nigeria have expanded significantly, with over 50% of funds allocated to Federal Government of Nigeria (FGN) securities, which grew by 19% this year.
Other safe investments like money market instruments and corporate debt also saw steady growth, rising by 31% and 22%, respectively. These investments provide a balance between risk management and strong returns.
In H1 2024, Nigeria’s stock market was the best performer in Africa, beating competitors like the Casablanca and Namibian stock exchanges.
Even with increased competition from fixed-income yields, pension funds continue to invest heavily in equities to boost returns and manage risks, ensuring sustainable growth for the future.