Nigeria’s Pension Funds Surge 22% to ₦26.7 Trillion on Rising Contributions
Rewritten Story:
Nigeria’s pension fund assets climbed by 22 percent to ₦26.7 trillion, buoyed by stronger market performance, higher contribution inflows and increased diversification across asset classes, analysts at the Pension Fund Operators Association of Nigeria (PenOp) have said.
Equity investments recorded one of the sharpest gains, with holdings in domestic ordinary shares jumping by 82 percent from ₦2.11 trillion to ₦3.84 trillion, reflecting sustained confidence in long-term growth assets.
Investments in Federal Government of Nigeria (FGN) securities posted the largest increase among traditional assets, rising by 17.6 percent from ₦13.57 trillion to ₦15.96 trillion, as pension managers deepened exposure to government-backed instruments.
Money market allocations also expanded by 30.9 percent, growing from ₦2.20 trillion to ₦2.88 trillion, driven by liquidity management needs and attractive short-term yields.
Alternative assets recorded strong growth as well. Investments in mutual funds more than doubled, surging by 107.6 percent from ₦106.85 billion to ₦221.86 billion, while infrastructure fund holdings rose by 48.1 percent to ₦262.57 billion. Private equity exposure increased by 89.5 percent, climbing from ₦123.04 billion to ₦233.10 billion, signalling growing appetite for long-term value and alternative investments.
PenOp said the broad-based growth across both traditional and alternative assets underscores the pension sector’s expanding contribution to capital market development and overall economic growth.
In its third-quarter industry performance report, the National Pension Commission (PenCom) noted that ongoing reforms have continued to drive stability, confidence and steady growth within Nigeria’s pension system, describing the period as one marked by resilience and reform-led progress.
