Nigeria’s Pension Fund Assets Reach N24.63 Trillion In June 2025, Driven By Equities And Government Securities

STEADY GROWTH IN PENSION ASSETS
Nigeria’s pension fund industry maintained its growth path in June 2025, as total assets under management climbed to N24.63 trillion. This represents a 2.17% increase from N24.11 trillion recorded in May 2025 and a strong 20.24% growth year-on-year.

This upward trend shows investors still have confidence in the system, with PFAs strategically reallocating assets and benefiting from better performance in local equities and government-backed securities.

The figures are based on new data from the National Pension Commission (PenCom), giving insight into how pension managers are adjusting to market and economic realities.

DOMESTIC AND FOREIGN EQUITY INVESTMENTS
One major highlight from the report is the rise in domestic ordinary shares, which grew by N333.05 billion or 12.12% to hit N3.08 trillion. This made up 12.5% of the entire pension asset base, marking one of the strongest equity performances this year.

Analysts suggest this was driven by positive momentum in the Nigerian Exchange (NGX), better corporate results, and more risk appetite from PFAs.

Foreign shares also recorded a smaller rise of 0.95% to reach N292.78 billion, showing that there’s still some cautious optimism in international markets despite global economic uncertainties.

FGN SECURITIES DOMINATE THE PORTFOLIO
Securities issued by the Federal Government of Nigeria (FGN) continued to dominate pension portfolios, making up over 61% of total assets.

That asset class rose by N232.96 billion or 1.56% to N15.19 trillion in June 2025.

Breakdown:

•⁠ ⁠FGN Bonds (Held-To-Maturity) grew by 0.91% to N12.79 trillion, contributing a solid 51.9% to the entire portfolio.
•⁠ ⁠Treasury Bills rose by 3.24% to N624.15 billion.
•⁠ ⁠Green Bonds jumped massively by 361.15% to N10.71 billion, up from N2.32 billion.
•⁠ ⁠Sukuk Bonds increased by 3.21% to N89.64 billion.
•⁠ ⁠Agency Bonds, however, declined by 5.50%.

Despite this minor drop, FGN securities remain the most reliable and liquid investment options for PFAs.

DECLINE IN CORPORATE DEBT INVESTMENTS
PFAs pulled back from corporate debt securities, which fell by 1.26% to N2.26 trillion. Every subcategory within this class dropped:

•⁠ ⁠Corporate Bonds (HTM) down by 1.02%
•⁠ ⁠Corporate Infrastructure Bonds fell 1.48%
•⁠ ⁠Corporate Bonds (AFS) saw the sharpest drop of 1.86%

Even with these declines, corporate debt still makes up 9.19% of the total assets, showing PFAs are still interested in private sector opportunities, but with caution.

SHIFT IN MONEY MARKET STRATEGY
Pension managers reduced exposure to money market instruments, with the asset class dipping by 3.16% to N2.24 trillion.

Fixed deposits dropped 7.10%, while Commercial Papers rose sharply by 32.98% to N342.65 billion, indicating a move toward short-term high-yield options.

Foreign money market instruments experienced a steep fall of 24.69%, making it the biggest loss across all asset classes in June.

ALTERNATIVE ASSETS – MIXED RESULTS
PFAs showed restraint with mutual funds, which dipped slightly by 0.10% to N183.82 billion.

Other movements in alternative investments include:

•⁠ ⁠Open/Close-End Funds declined by 1.83%
•⁠ ⁠Supra-national Bonds rose slightly by 0.09%
•⁠ ⁠Real Estate fell by 6.83% due to asset revaluation
•⁠ ⁠Infrastructure Funds gained 5.62%, showing renewed interest in long-term capital projects
•⁠ ⁠REITs (Real Estate Investment Trusts) increased by 2.23%
•⁠ ⁠Cash and Other Assets surged by 21.35%, jumping to N394.18 billion in June from N324.84 billion in May

FUND CATEGORY PERFORMANCE
Looking at the different RSA and legacy fund types:

•⁠ ⁠Fund II (the most subscribed option) rose by 2.57% to N10.3 trillion, contributing over 41% of total assets
•⁠ ⁠Fund III (for older contributors) increased 1.17% to N6.4 trillion
•⁠ ⁠Fund I saw growth of 3.21% to N329.6 billion
•⁠ ⁠Fund IV rose 2.14%, consistent with its conservative strategy
•⁠ ⁠Fund V and VI (for micro-pensions) went up 3.86% and 2.90% respectively
•⁠ ⁠Existing Schemes contributed 12.08% and CPFAs 10.7% to the overall asset base, showing wide participation from institutional and legacy schemes

GROWTH IN RSA REGISTRATION
The number of Retirement Savings Account (RSA) holders slightly rose from 10.76 million in May to 10.80 million in June 2025. That’s a 4.01% increase from 10.38 million in June 2024, suggesting continued onboarding of new workers into the Contributory Pension Scheme.

WHAT THIS MEANS FOR YOU
The numbers from June 2025 show that Nigeria’s pension industry is adapting well in a tough economic environment. With assets approaching the N25 trillion mark, PFAs are managing to diversify while leaning on solid gains from equities and government-backed investments.

However, the noticeable dip in corporate and money market assets reflects a more careful approach as interest rates, inflation, and regulations continue to shift.

In the coming months, analysts will be closely watching how pension managers respond to these changes to ensure both safety and long-term returns for contributors.