PenCom Targets Private Equity to Boost Pension Fund Returns and Diversify Investments
(by Springnewsng, July 4, 2025):
The National Pension Commission (PenCom) has announced plans to channel pension assets into private equity as part of efforts to diversify Nigeria’s pension investment portfolio and boost long-term returns.
Speaking at a stakeholders’ forum in Abuja on Thursday, PenCom Director-General, Aisha Dahir-Umar, stated that the commission is exploring strategic investments in private equity funds, infrastructure, and alternative assets.
According to Dahir-Umar, Nigeria’s growing pension assets—currently valued at over N19 trillion—must be deployed more innovatively to achieve optimal returns, reduce concentration risks, and support economic development.
She said, “We are committed to ensuring that pension funds are not only safe but also invested in a manner that yields sustainable returns. Private equity offers a promising avenue to achieve this goal, especially in high-growth sectors of the Nigerian economy.”
The move aligns with PenCom’s broader goal of diversifying away from traditional fixed-income instruments, such as federal government securities, which still make up the bulk of pension fund investments.
Experts in the finance sector have welcomed the development, noting that increased participation in private equity could spur job creation, empower startups, and drive innovation across industries.
PenCom also revealed plans to issue updated investment guidelines to help Pension Fund Administrators (PFAs) navigate the new asset classes while maintaining strict regulatory oversight.
With Nigeria facing economic headwinds and fluctuating returns from government bonds, stakeholders say the shift toward private equity is timely and necessary to ensure the long-term sustainability of pension funds.
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