Nigeria’s pension fund assets inched up to N23.32 trillion in March 2025, reflecting a slight 0.27% increase from the N23.26 trillion recorded in February, according to the latest National Pension Commission (PenCom) report.
The modest monthly rise underscores the sustained stability of the pension industry, driven by strategic asset diversification and prudent investment management that continue to support the sector’s long-term growth trajectory.
Portfolio Composition
Federal Government securities remain the cornerstone of pension fund investments, accounting for N14.48 trillion or 62.09% of total assets under management (AUM). Key portfolio allocations include:
- Corporate Debt Securities: N2.34 trillion (10.07% of AUM)
- Money Market Instruments: N2.07 trillion (8.91% of AUM)
- Foreign Ordinary Shares: N263.38 billion
- Federal Government Bonds: N12.38 trillion (53.11% of AUM)
- State Government Securities: N246.72 billion
- Ordinary Shares (Local Companies): N2.57 trillion, a slight 0.46% decline from February’s N2.58 trillion
Significant rebounds were recorded in other asset classes, with mutual funds soaring 81.75% to N154.95 billion from N84.76 billion the previous month.
Additional March highlights include:
- Commercial Paper jumped 37.67% to N250.29 billion
- Real Estate Investment Trusts (REITs) and Open/Close-End Funds posted robust gains of 178.31% and 41.23%, respectively
- Cash and other assets grew 25.72% to N502.28 billion
Conversely, Treasury Bills declined 15.12% to N593.21 billion, while Foreign Money Market Instruments tumbled 37.26% to N64.18 billion. Agency Bonds and Sukuk Bonds also dipped by 9.04% and 5.85%, respectively.
Fund Allocation and Membership Trends
Within PenCom’s Multi-Fund Structure, Fund II remains the largest Retirement Savings Account (RSA) fund, commanding N9.65 trillion or 41.39% of total AUM. Fund III follows as the second-largest, posting a 0.51% increase to N6.09 trillion in March.
RSA membership grew modestly by 0.36%, reaching 10,689,846 contributors, up from 10,650,990 in February.
Year-on-Year Performance
Over the past year, Nigeria’s pension assets surged by 18.06%, rising from N19.75 trillion in March 2024 to N23.32 trillion in March 2025. This growth has been fueled primarily by increased pension contributions and strong investment returns, particularly in Federal Government Securities, which jumped 18.72% year-on-year from N12.20 trillion to N14.48 trillion.
Long-Term Growth Amid Currency Challenges
Over a two-year span, pension fund assets have demonstrated steady growth in Naira terms despite currency depreciation affecting their dollar valuation. Assets grew from N15.58 trillion in March 2023 (approximately $33.53 billion at an exchange rate of N464.67 to $1) to N19.76 trillion in March 2024 (about $15.09 billion amid a N1,309.39 exchange rate).
By March 2025, pension assets hit N23.32 trillion, equating to roughly $15.17 billion at the then prevailing exchange rate of N1,537 to $1. This trend highlights Nigeria’s pension industry resilience and expanding domestic footprint even as external currency pressures persist.
