Nigerian Stock Market Surges N6.79 Trillion as PenCom Raises Pension Fund Equity Limits

The Nigerian stock market recorded a remarkable gain of N6.79 trillion in its week-on-week performance, driven by the National Pension Commission (PenCom)’s recent decision to increase equity allocation limits for pension funds. The move, announced on February 9, 2026, provided fresh liquidity to the market, sending share prices of key blue-chip companies higher and strengthening investor confidence.

PenCom revised Section 9 of its investment regulations, raising equity allocation caps for multiple Retirement Savings Account (RSA) fund classes. RSA Fund I increased from 30% to 35%, Fund II from 25% to 33%, Fund III from 10% to 15%, and Fund VI (Active) from 25% to 33%. According to the regulator, this adjustment aims to address challenges in implementing the revised regulations on pension fund investments, initially published in September 2025.

The impact on market indicators was immediate. The NGX All-Share Index (ASI) rose 6.16% to close at 182,313.08 points, pushing Month-to-Date and Year-to-Date returns to +10.1% and +17%, respectively. Market breadth remained positive, with 79 advancing stocks outpacing 27 decliners. Zichis Agro Allied Industries led gainers with a 60.71% increase, while Union Dicon Salt and Daar Communications followed with gains of 60.15% and 55.26%, respectively. On the other hand, Abbey Mortgage Bank, Sovereign Trust Insurance, and Ecobank Transnational Incorporated faced notable declines.

Trading activity mirrored the market’s bullish trend, with a total turnover of 4.652 billion shares valued at N193.326 billion across 286,751 deals, compared with 3.86 billion shares worth N128.581 billion the previous week. The Financial Services Industry dominated trading, contributing nearly 60% of total equity volume, followed by the Services and Consumer Goods sectors. This surge reflects broad-based investor engagement, boosted by improved liquidity from the pension fund policy.

Looking ahead, analysts expect the positive momentum to continue, albeit with caution. Cowry Asset Management Limited highlighted that increased capacity for pension funds to invest in equities will sustain demand, particularly in strong-performing stocks, though some profit-taking may occur. Similarly, Afrinvest Limited anticipates a bullish but volatile week, while Imperial Asset Managers Limited recommends that investors focus on fundamentally sound, dividend-paying stocks as corporate earnings and dividends come into focus. Overall, market sentiment remains constructive, underpinned by liquidity-driven buying.

source: This day