Pension assets rise to N27.45 trillion

Nigeria’s pension assets rose to N27.45 trillion in December 2025, recording an N399.27 billion month-on-month increase, according to the National Pension Commission’s unaudited industry portfolio report for the period ended December 31, 2025.

The Nation found that the latest figure represents growth from N27.05 trillion recorded in November 2025, reinforcing the steady expansion of the pension industry despite portfolio rebalancing across key asset classes.

PenCom’s report, which covers approved existing schemes, closed pension fund administrators and Retirement Savings Accounts (RSAs), shows that Federal Government of Nigeria (FGN) securities remained the backbone of pension investments, accounting for N16.33 trillion of total assets in December, marginally higher than N16.33 trillion recorded in November.

Within the FGN securities portfolio, Federal Government bonds held to maturity declined slightly to N12.83 trillion in December from N12.92 trillion in November, reflecting valuation movements and selective repositioning by pension fund operators.

In contrast, FGN bonds available for sale increased to N2.63 trillion from N2.59 trillion, indicating a measured shift toward more liquid sovereign instruments.

Treasury bills recorded a notable increase, rising to N761.09 billion in December from N675.50 billion in November, as fund managers’ increased short-term sovereign exposure amid evolving interest rate dynamics.

Equity investments emerged as one of the strongest contributors to December’s asset growth.

Domestic ordinary shares climbed to N3.96 trillion in December, up from N3.70 trillion in November, supported by improved stock market performance and year-end portfolio adjustments while Foreign ordinary shares remained broadly unchanged at N263.94 billion, reflecting continued caution around offshore equity exposure.

Investments in corporate debt securities also increased, rising to N2.20 trillion in December from N2.15 trillion in November.

The growth was driven mainly by corporate bonds held to maturity, which expanded to N1.40 trillion from N1.33 trillion, signalling preference for stable, long-term income instruments.

However, corporate bonds available for sale declined slightly, showing some profit-taking and cautious risk management.

By contrast, money market instruments declined to N2.62 trillion in December, down from N2.81 trillion in November. Fixed deposits and bank acceptances fell to N2.27 trillion from N2.44 trillion, reflecting reduced short-term placements as funds were redirected toward equities, infrastructure and selected fixed-income securities.

On the other hand, alternative assets recorded mixed performance. Infrastructure funds increased to N282.14 billion in December from N257.23 billion in November, highlighting the pension industry’s growing participation in long-term development financing. Real estate investments also rose to N170.76 billion from N145.99 billion, while private equity holdings declined modestly to N238.53 billion from N248.54 billion.

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Cash and other assets rose sharply to N746.97 billion in December, compared with N520.38 billion in November, reflecting higher liquidity buffers typically associated with year-end positioning and settlement flows.

Overall, the pension industry recorded net asset growth of N399.27 billion in December, slightly higher than the N391.23 billion increase recorded in November, underscoring resilience in pension fund performance despite macroeconomic pressures.

In the same vein, RSA membership also rose to 11.04 million contributors as at December 31, 2025, up from 11.01 million recorded in November, indicating continued expansion in pension coverage nationwide.