Nigeria’s pension fund assets soared to an all-time high of ₦19.53 trillion in March 2025, driven by strong performance in equities, mutual funds, and federal government securities.
Between December 2024 and March 2025, the industry recorded significant gains across nearly all asset classes, reflecting a shift toward strategic diversification and rising confidence in the financial markets.
Equity investments rose from ₦2.51 trillion to ₦2.83 trillion, as pension fund administrators (PFAs) capitalised on robust stock market performance and attractive dividend yields. Analysts see this move as a sign of growing risk appetite amid improved corporate earnings and market reforms.
Holdings in Federal Government of Nigeria (FGN) securities—including bonds and treasury bills—remained dominant, increasing from ₦14.11 trillion to ₦14.48 trillion. These instruments are preferred for their safety and steady returns.
Corporate debt securities also saw a moderate uptick, rising from ₦2.25 trillion to ₦2.35 trillion, as PFAs continued to invest in creditworthy private sector issuers.
However, the most striking development was the dramatic jump in mutual funds, which more than doubled from ₦80.78 billion in December 2024 to ₦154.05 billion by March 2025. This reflects a deliberate strategy to tap into professionally managed, diversified portfolios for higher yield.
PFAs also increased their exposure to cash and other liquid assets, with holdings climbing from ₦427.84 billion to ₦502.29 billion, allowing greater flexibility in navigating market fluctuations.
Experts say the broad-based growth signals a more balanced investment approach, moving beyond the traditionally conservative stance that defined the early years of Nigeria’s contributory pension scheme.
“These numbers reflect increasing sophistication among PFAs who are now focused on both security and returns,” said a Lagos-based pension analyst.
With the pension industry now managing ₦19.53 trillion, stakeholders believe this momentum will deepen Nigeria’s capital markets, boost economic development, and help contributors build more resilient retirement savings.
The asset surge is seen as a positive response to recent reforms by the National Pension Commission (PenCom), which aim to expand the investment horizon and improve long-term outcomes for retirees
