Nigeria’s pension industry continued its steady climb in October 2025, as fund managers navigated a mix of higher fixed-income yields and subdued stock market activity.
Despite the cautious investment mood, most Pension Fund Administrators (PFAs) posted moderate gains across all RSA fund categories.
According to data compiled by the Naijaonpoint Research team, the overall average return for the industry stood at 1.91% in October, marking a stronger outing compared to 1.24% recorded in September 2025.
Fund I, which caters to younger contributors with higher risk appetites, remained the best performer with an average return of 2.80%. Fund II followed with 1.88%, Fund III averaged 1.58%, while Fund IV — the retirees’ fund — posted the lowest return at 1.40%.
All percentage returns were calculated based on changes in fund unit prices as published by the 17 Pension Fund Administrator on their official website for September and October 2025, as Nigeria Police Force Pensions Limited data was incomplete.
Its consistent exposure to high-yield government securities and quality equities helped it stay ahead of the pack.
This performance was fueled by strategic positioning in high-yield bonds and efficient asset allocation.
Other PFAs that posted above-average returns include:
Meanwhile, Crusader Sterling Pensions Limited recorded the weakest overall return at 1.45%, largely reflecting conservative positioning and lower exposure to higher-yield assets.
Fund I (Younger Contributors)
Fund I, designed for contributors under 50 with higher risk tolerance, led the market with an average gain of 2.80%. Improved performance in equities supported stronger results across most PFAs.
Top 3 Performers:
All 17 PFAs recorded a positive return in this Fund category.
Fund II, which represents the largest share of contributors, recorded a modest 1.88% average growth in October. This reflects cautious investment strategies amid volatile market conditions.
Top 3 Performers:
Top 3 Performers:
All PFAs posted positive results in this category, although Crusader Sterling Pensions lagged with 0.92%.
Fund III, tailored for contributors approaching retirement, performed steadily with a 1.58% average return. Stable bond yields and conservative asset allocation drove returns.
Top 3 Performers:
Fund IV, the most conservative category, posted an average return of 1.40% in October, reflecting gains in fixed-income and money market instruments.
Top 3 Performers:
The improvement in pension fund performance during October was largely driven by higher yields in the fixed-income market, which boosted the value of bond holdings across several PFAs.
Equity market activity, though limited, also contributed positively — the NGX All-Share Index (NGX-ASI) gained around 8% month-to-date during the period, providing mild support to portfolio valuations.
Fund I remained the top performer, reflecting its exposure to equities and longer-duration assets, while Fund IV stayed conservative, aligning with retirees’ lower risk appetite.
It is also worth noting that Nigeria Police Force Pensions Limited, which had led in previous months, was excluded from this ranking due to incomplete data for October.
The strong performance by OAK Pensions and Nigerian University Pension Management reflects how effective asset allocation and strategic diversification can deliver value even in uncertain markets.