The National Pension Commission (PenCom) announced that Nigeria’s Contributory Pension Scheme assets grew to N23.33 trillion by March 31, 2025, marking an N820 billion increase from N22.51 trillion at the end of 2024. PenCom’s Director of Surveillance, Mr. Saleem Abdulrahman, shared this update during a briefing in Lagos on Thursday, attributing the growth to new contributions from Retirement Savings Account (RSA) holders and investment gains, particularly from rising equity prices and fixed-income interest.
Breakdown of Pension Assets
Abdulrahman detailed that RSA Funds I–VI comprised N17.90 trillion, or 76.73% of total assets. Existing Schemes accounted for N2.77 trillion (11.87%), while Closed Pension Funds contributed N2.66 trillion (11.40%). The majority of investments, 62.09%, were allocated to Federal Government Securities, followed by domestic ordinary shares at 11.02% and money market instruments at 8.91%. The pension industry achieved an annualized year-to-date return of 19.29%, reflecting robust portfolio performance.
Strategic Initiatives for Diversification
To enhance portfolio resilience, PenCom, in partnership with Financial Sector Deepening Africa (FSD Africa), is hosting a workshop on alternative asset investments for Pension Fund Administrators’ (PFAs) board chairpersons and investment strategy committees. Abdulrahman emphasized that this initiative aims to promote diversified and safer pension fund investments, boosting long-term returns while mitigating risks.
Economic Context and Implications
The growth in pension assets underscores the sector’s resilience amid Nigeria’s economic challenges, including inflation and currency volatility. The significant allocation to government securities reflects a conservative approach, while the push for alternative assets signals a shift toward diversification to sustain returns. As pension funds play a critical role in Nigeria’s financial system, PenCom’s efforts to strengthen investment strategies are poised to support economic stability and retiree welfare.
