11 Million New Contributors Drive N4.5trn Pension Growth as Assets Hit N27.45trn
Nigeria’s pension industry recorded one of its strongest performances in 2025, with assets under management rising by about ₦4.5 trillion to close the year at ₦27.45 trillion, largely driven by the onboarding of more than 11 million new contributors into the Contributory Pension Scheme (CPS). The surge highlights the growing importance of pensions as a stabilising pillar of the country’s financial system.
Data from the industry show that pension assets climbed from ₦22.51 trillion in December 2024 to ₦27.45 trillion by December 2025, supported by fresh inflows from newly enrolled workers and steady investment returns. About 11.04 million employees were registered into the CPS after their employers opened Retirement Savings Accounts (RSAs) on their behalf, significantly expanding the contributor base and deepening long-term savings.
The impact of the expanded enrolment was reflected in consistent month-on-month growth throughout the year. Pension assets crossed the ₦24 trillion mark by May 2025, rose sharply to ₦25.79 trillion in July, and continued their upward trajectory to ₦26.66 trillion in October, before ending the year with a ₦450 billion increase in December alone.
Industry analysts attribute the sustained growth to improved employer compliance, rising awareness among workers, and prudent investment strategies by Pension Fund Administrators (PFAs). Federal Government securities remained the dominant investment choice at ₦16.33 trillion, while money market instruments and corporate debt securities attracted ₦2.62 trillion and ₦2.2 trillion respectively, helping to deliver stable returns amid market volatility.
Despite the impressive gains, stakeholders warn that Nigeria’s pension potential remains largely untapped, with an estimated 73.1 million workers still outside the pension system. Experts stress that stronger enforcement of the Pension Reform Act (PRA) 2014, increased advocacy, and incentives for informal sector participation are crucial to expanding coverage and ensuring long-term retirement security for more Nigerians.
source: The sun