Nigeria’s pension assets climb to N23.32trn, sustaining growth despite economic pressures
BY MOTOLANI OSENI
Nigeria’s pension industry maintained its steady growth trajectory in March 2025, with total assets under management rising to N23.32 trillion.
This represents a marginal increase of 0.27 per cent from N23.26 trillion recorded in February, according to the latest figures from the National Pension Commission (PenCom).
The sustained growth underscores the sector’s stability, driven by strategic asset allocation and a diversified investment approach that continues to reinforce the long-term expansion of pension assets despite ongoing economic headwinds.
Federal Government securities remained the dominant investment choice, accounting for N14.48 trillion, or 62.09 per cent of the total pension assets, with Federal Government Bonds alone contributing N12.38 trillion, representing 53.11 per cent of the entire portfolio.
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Other significant allocations included corporate debt securities valued at N2.34 trillion, representing 10.07 per cent of total assets, and money market instruments at N2.07 trillion, accounting for 8.91 per cent.
Investments in foreign ordinary shares stood at N263.38 billion, while state government securities reached N246.72 billion. Ordinary shares of local companies slightly dipped by 0.46 per cent to N2.57 trillion from N2.58 trillion in February.
The industry also witnessed significant rebounds in several asset classes. Mutual funds surged by 81.75 per cent to N154.95 billion, up from N84.76 billion in February. Commercial papers rose by 37.67 per cent to N250.29 billion, while Real Estate Investment Trusts (REITs) and open and closed-end funds recorded substantial gains of 178.31 per cent and 41.23 per cent, respectively.
Cash and other assets increased by 25.72 per cent to N502.28 billion. On the downside, treasury bills fell by 15.12 per cent to N593.21 billion, foreign money market instruments declined 37.26 per cent to N64.18 billion, and agency bonds slipped 9.04 per cent to N7.41 billion, while sukuk bonds dropped 5.85 per cent to N89.24 billion.
Within the Retirement Savings Account (RSA) structure, Fund II continued to lead, holding N9.65 trillion, which represents 41.39 per cent of total assets under management. Fund III followed with a 0.51 per cent increase to N6.09 trillion in March. RSA membership also saw a modest rise of 0.36 per cent, increasing to 10,689,846 contributors in March from 10,650,990 in February.
On a year-on-year basis, the pension fund assets recorded a strong growth of 18.06 per cent, rising from N19.75 trillion in March 2024 to N23.32 trillion in March 2025.
This growth was fuelled by increased pension contributions and higher investment valuations, particularly in Federal Government Securities, which rose by 18.72 per cent from N12.20 trillion to N14.48 trillion over the period.
Looking at the longer-term trend, Nigeria’s pension fund assets have continued to expand in Naira terms despite fluctuations in foreign exchange rates. In March 2023, assets stood at N15.58 trillion, valued at approximately $33.53 billion at an average exchange rate of N464.67 to $1.
By March 2024, assets had risen to N19.76 trillion, but due to the weakening of the Naira, the dollar value dropped to $15.09 billion at an average exchange rate of N1,309.39 to $1. As of March 2025, with the Naira averaging N1,537 to $1, pension assets reached N23.32 trillion, equivalent to about $15.17 billion.
The consistent growth in Naira-denominated pension assets, despite foreign exchange challenges, highlights the underlying strength of Nigeria’s pension system.
The sector continues to benefit from rising contributions and prudent fund management, particularly in Federal Government securities. As the industry deepens, it remains a critical pillar for domestic capital market development, economic stability, and long-term national growth.
