Nigeria’s pension industry has committed a substantial N5.51 trillion towards financing key sectors critical for long-term economic growth, according to the National Pension Commission (PenCom). These investments cover a range of asset classes, including infrastructure, private equity, real estate, and subnational projects, aimed at boosting the real sector. The announcement was made by PenCom’s Director General, Omolola Oloworaran, during a meeting with a delegation from the International Monetary Fund (IMF) on April 7, 2025, as part of the IMF’s 2025 Article IV Consultations.
PenCom reported that the total net asset value of pension funds grew by 22.65%, from N18.36 trillion in December 2023 to N22.51 trillion in December 2024. This growth was driven by additional contributions and investment income, reflecting the pension sector’s critical role in supporting economic development. However, Oloworaran pointed out the challenges posed by the limited number of investable instruments available in the Nigerian market that meet the minimum requirements for pension fund investments.
Despite these challenges, PenCom continues to collaborate with market operators to expand the variety of financial instruments available for pension funds. The commission is focused on diversifying pension portfolios and enhancing returns, particularly through increased investments in alternative assets. This is part of ongoing efforts to strengthen the long-term sustainability of Nigeria’s Contributory Pension Scheme (CPS).
The IMF delegation, led by Senior Financial Sector Expert Jose De Luna, praised PenCom for its efforts in diversifying pension fund investments. The IMF also acknowledged the remarkable growth of Nigeria’s pension industry, recognizing PenCom’s role in fostering a sustainable financial environment for the country’s economic growth and development.
Source: leadership