Nigeria’s Pension Assets Surge to N24.63 Trillion in June 2025 Amid Strong Equities and FGN Securities Performance
Nigeria’s pension fund assets reached a historic N24.63 trillion in June 2025, representing a 2.17% increase from May and a substantial 20.24% year-on-year growth. This rise is largely attributed to improved investor confidence and the strategic reallocation of assets into higher-yielding instruments. According to data from the National Pension Commission (PenCom), the growth reflects the adaptability of Pension Fund Administrators (PFAs) amid changing economic conditions.
A significant portion of this growth came from domestic equities, which surged by 12.12% to N3.08 trillion, marking one of the strongest performances in 2025. The bullish sentiment on the Nigerian Exchange (NGX), boosted by stronger corporate earnings and greater risk appetite, fueled this gain. Federal Government of Nigeria (FGN) securities remained the cornerstone of pension investments, comprising over 61% of total assets and reaching N15.19 trillion, with notable gains in bonds, Treasury Bills, and green investments.
However, corporate debt securities declined across all subcategories, with an overall 1.26% dip to N2.26 trillion. PFAs appeared to reduce exposure to private sector credit amid economic uncertainties. Similarly, money market investments fell by 3.16%, especially in fixed deposits, although Commercial Papers rose sharply by nearly 33%, indicating a shift toward short-term debt strategies. Foreign money market instruments suffered the steepest drop at 24.69%.
Alternative asset classes had mixed results: Real estate investments fell by nearly 7% due to revaluations, while Infrastructure Funds gained 5.62% and REITs rose modestly. Mutual Funds and Open/Close-End funds experienced slight declines, reflecting cautious allocation in riskier or less liquid areas. Cash and other assets increased significantly by over 21%, suggesting strategic liquidity buildup by PFAs.
On the fund performance side, Fund II (for active workers) remains dominant, holding 41% of total assets at N10.3 trillion. Legacy schemes and CPFAs also showed strong contributions, while Fund V and VI (for micro-pensions) experienced healthy growth. RSA registrations continued to rise, hitting 10.80 million in June, highlighting continued interest in the Contributory Pension Scheme despite macroeconomic headwinds.
Source: Nairametrics