Pension assets hit N24.63trn in June — domestic stocks, FGN bonds drive growth

Nigeria’s pension fund assets rose to N24.63 trillion in June 2025, reflecting continued investor confidence and strategic shifts in portfolio allocation, according to the National Pension Commission (PenCom).

The figure represents a 2.17 percent increase from N24.11 trillion in May, and a year-on-year growth of 20.24 percent.

The uptrend was largely driven by increased exposure to domestic equities and Federal Government of Nigeria (FGN) securities.

Domestic stocks rose by 12.12 percent to N3.08 trillion, boosted by bullish sentiment on the Nigerian Exchange (NGX), improved corporate earnings, and a higher risk appetite among Pension Fund Administrators (PFAs). Foreign equities also posted a modest 0.95 percent gain, reaching N292.78 billion.

FGN securities, which remain the largest asset class in the pension portfolio, rose by 1.56 percent to N15.19 trillion, accounting for more than 61 percent of total assets.

Breakdown of the segment shows FGN Bonds (HTM) climbed to N12.79 trillion, Treasury Bills increased by 3.24 percent to N624.15 billion, Green Bonds surged by 361.15 percent, and Sukuk Bonds rose 3.21 percent. Agency Bonds declined by 5.50 percent.

However, corporate debt instruments fell by 1.26 percent to N2.26 trillion, with all its subcategories posting negative returns. Money market instruments also dropped 3.16 percent to N2.24 trillion, led by a 7.10 percent fall in fixed deposits. Commercial Papers bucked the trend, surging by 32.98 percent.

In the alternatives segment, Real Estate investments declined 6.83 percent to N255.94 billion, while Infrastructure Funds rose 5.62 percent. Real Estate Investment Trusts (REITs) gained 2.23 percent, while mutual funds dipped slightly.

Cash and other assets recorded a 21.35 percent increase, hitting N394.18 billion — a possible sign of rebalancing amid inflationary pressures.

By fund category, Fund II remained the largest, rising 2.57 percent to N10.3 trillion and accounting for more than 41 percent of total assets. Fund III grew by 1.17 percent to N6.4 trillion, while Fund I and Fund IV increased by 3.21 percent and 2.14 percent, respectively. Micro-pension funds (Fund V and VI) also posted moderate gains.

RSA registrations climbed from 10.76 million in May to 10.80 million in June — a 4.01 percent year-on-year rise — suggesting sustained trust in the contributory pension scheme despite economic headwinds.

Analysts say the N24.63 trillion milestone shows PFAs are adapting their portfolios in response to shifting yields, inflation dynamics, and long-term value creation for contributors.