With total assets under management reaching N24.63 trillion in June 2025, Nigeria’s pension fund sector has kept its astounding growth streak.
This is a strong 20.24 percent year-on-year increase from N24.11 trillion in May and a 2.17 percent month-on-month rise. Recent figures from the National Pension Commission (PenCom) show rising investor confidence and deliberate diversifying by Pension Fund Administrators (PFAs) in response to shifting economic circumstances.
The robust performance of local equities is a major engine behind this expansion. Investments in local shares increased by more than N333 billion in June, representing a monthly growth of 12.12 percent and bringing the total to N3.08 trillion. Bullish trading on the Nigerian Exchange (NGX), higher corporate profits, and greater risk tolerance by PFAs all contributed to this rally. Foreign stocks meanwhile moved up a little, pointing to careful optimism in international markets.
Accounting for over 61% of the entire portfolio, FGN bonds continue to be the cornerstone of Nigeria’s pension fund holdings. Holdings in this group grew by N232.96 billion in June alone, totaling N15.19 trillion. Among that, treasury bills increased 3.24 percent to reach N624.15 billion while FGN bonds climbed to N12.79 trillion. Green bonds increased an amazing 361%; sukuk bonds gained 3.21%. Although agency bonds fell 5.5%, FGN instruments keep offering stability and liquidity for pension holdings.
On the other hand, corporate debt instruments experienced a minor retreat. Declines in corporate bonds, infrastructure bonds, and commercial paper pointed to a more prudent approach to private sector credit. Commercial paper defied the trend, growing by almost 33 percent to N342.65 billion, therefore indicating a favor for short-term fixedincome assets. Foreign money market tools plummeted 24.69%.
Alternative assets offered an uneven picture. Long-term investor interest was indicated by the 5.62% rise in infrastructure funding and the 2.23% gain in REITs. However, revaluation caused real estate investments to fall 6.83%. Open/closeend funds and mutual funds had small contractions as well.
Fundwise results indicate that RSA Fund II, which serves most active contributors, remains the largest, reaching N10.3 trillion and making up somewhat more than 41 percent of all assets. Designed for older contributors, Fund III soared to N6.4 trillion. While existing programs and CPFAs accounted for 12.08 percent and 10.7 percent, correspondingly of overall assets, other funds, Fund I, IV, V, and VI, showed consistent growth.
RSA registration also went up, with account holders reaching 10.80 million in June, up from 10.76 million in May, showing a consistent rise in pension coverage despite more general financial difficulties.
Generally speaking, the pension fund sector of Nigeria is on a firm basis. PFAs are deliberately balancing risk and chance, using profits from government bonds and stocks while being wary of corporate and money market exposure, with around N25 trillion in assets. The capacity of PFAs to change their policies will be vital to maintaining long-term profits and safeguarding contributors’ futures as economic circumstances change.
