FGN Securities Drive Nigeria’s Pension Assets to N28 Trillion Amid 16.7% Growth
Nigeria’s pension industry has seen a remarkable surge in its Net Asset Value (NAV), reaching N28.04 trillion in January 2026, up from N22.51 trillion a year earlier. This 24.6% increase is largely driven by higher yields from investments in Federal Government of Nigeria (FGN) securities, according to the latest data from the National Pension Commission (PenCom).
The report highlights that pension funds’ holdings in FGN securities grew 16.7% Year-on-Year (YoY), rising to N16.695 trillion from N14.309 trillion in January 2025. FGN bonds continue to dominate pension portfolios, making up approximately 59.5% of total pension assets, underscoring the government’s role in shaping investment trends in the sector.
PenCom notes that regulatory limits on investments significantly influence this allocation, steering pension fund administrators to favor government securities. Treasury bills also saw notable growth, climbing 12.6% YoY to N894.1 billion from N794.3 billion in January 2025, reflecting a renewed interest in low-risk government instruments. Meanwhile, Sukuk bonds, comprising Hold Till Maturity (HTM) and Available for Sale (AfS) assets, fell by 9.2% YoY to N85.02 billion.
Analysts at InvestData Consulting Limited attributed the growth in government-backed investments to Nigeria’s high interest rate environment in 2025 and the government’s increased borrowing to cover budget deficits. These factors, they explained, have made fixed-income securities an attractive option for pension funds seeking stable returns.
David Adonri, Executive Vice Chairman at Highcap Securities Limited, added that the rising demand for FGN securities reflects their reputation as safe-haven assets. “High liquidity, attractive yields, and regulatory guidance from PenCom ensure that a growing portion of pension fund investments flow to government securities,” he said, noting that this trend is expected to continue as pension funds expand further.
source: vanguard