Nigeria’s pension fund assets have soared to N26.09 trillion as of September 2025, marking a 22.03% year-on-year growth, according to the latest report by the National Pension Commission (PenCom). This represents an increase of over N4.71 trillion from September 2024, reflecting robust expansion in the country’s Contributory Pension Scheme. Pension Fund Administrators (PFAs) continue to strengthen their investments in Federal Government securities, signaling confidence in government instruments despite macroeconomic uncertainties.
The growth trajectory of pension assets has been steady over the year. PenCom’s report showed that Nigeria’s pension funds crossed the N25 trillion threshold in July 2025, closing at N25.79 trillion. The upward trend continued into August with an increase of nearly N98 billion, highlighting consistent inflows and strong fund performance across the sector. Federal Government securities—including bonds, Sukuk, treasury bills, and agency securities—remain the primary investment choice, accounting for roughly 60% of total pension assets.
Beyond government instruments, pension funds have increasingly tapped into the equities market, with Domestic Ordinary Shares rising by about N1.6 trillion year-on-year. This growth has been fueled by improved market valuations, heightened liquidity, and positive investor sentiment. Additionally, corporate debt instruments have seen higher allocations, reflecting renewed activity in the corporate bond market and improved credit conditions for top-rated issuers.
The sector also recorded growth in Retirement Savings Accounts (RSAs), reaching approximately 10.9 million contributors. This expansion has been supported by stricter compliance enforcement, onboarding of new private-sector workers, and increased adoption of the rebranded Personal Pension Plan (PPP). PenCom has emphasized the need to expand pension coverage to Nigeria’s large informal workforce, estimated at 70 to 80 million people, many of whom have little or no access to structured retirement savings.
PenCom’s Director-General, Omolola Oloworaran, highlighted the commission’s focus on digitization to simplify contributions, increase transparency, and build trust in the micro-pension framework. Mobile-friendly, technology-driven solutions allow contributors real-time access to their accounts and investment statements. With conservative and growth-oriented investment options tailored to individual preferences, the revamped PPP aims to deepen financial inclusion, mobilize domestic capital, and secure dignified retirement outcomes for millions of Nigerians currently excluded from formal pension schemes.
source: Punch