Nigeria’s pension asset gains N4.1 trillion in one year, hits all-time high of N20.2 trillion

This growth was highlighted in an analysis by Nairalytics, the research division of Naijaonpoint.

Data from the National Pension Commission (PenCom) indicates that the total pension assets in the industry surged to N20.23 trillion in May 2024, up from N16.11 trillion in May 2023, representing a 25.6% year-on-year increase.

Compared to the previous month, the asset value increased by 2.23% from the N19.79 trillion recorded as of the previous month.

The increase in the industry’s assets under management can be attributed to the growing adoption and acceptance of pension schemes by Nigerians and the high yields on investments.

Additionally, the number of total pension registrations saw a year-over-year increase of 3.2%, rising from 9.99 million in May 2023 to 10.32 million in May 2024.

A notable aspect of the growth is the significant portion of the funds channelled into FGN securities. In the one-year period under review, 57.1% of the total gains, amounting to N2.07 trillion, were invested in federal government securities, particularly Treasury Bills. This allocation is driven mainly by regulatory guidelines and high-yielding fixed-income instruments.