Nigeria’s pension industry continued its steady march upward in October 2025, with total pension assets climbing to N26.66 trillion, representing a 2.19% month-on-month increase from N26.09 trillion recorded in September, and a strong 21.63% surge year-on-year.
The pension industry demonstrated sustained resilience, supported by cautious rebalancing into safer, liquid assets and sustained confidence in Federal Government securities, despite a challenging macroeconomic environment, marked by sticky inflation, FX volatility, and uncertain capital market sentiment.
The data showed that RSA enrollments grew from 10.93 million in September to 10.97 million in October, a 0.39% increase—reflecting ongoing onboarding of new entrants into the formal workforce and micro-pension participants.
FGN instruments remain the backbone of Nigeria’s pension portfolio, expanding marginally by 1.35% MoM to N15.96 trillion. These securities now account for 59.86% of total pension assets. Key movements within FGN Securities are:
Money market allocation recorded one of the strongest movements in October, rising from N2.42 trillion to N2.88 trillion—an 18.85% MoM increase. The category now accounts for 10.80% of total pension assets.
Corporate bonds dipped from N2.24 trillion in September to N2.16 trillion in October, contributing 8.11% to the total assets. The decline was broad-based:
This cooling in appetite aligns with continued credit risk concerns in the private sector, elevated borrowing costs, and recent downgrades affecting select issuers.
Domestic equities grew 5.01%, increasing to N3.84 trillion, and accounting for 14.42% of the total assets. This is supported by bargain-hunting as investors priced in potential year-end rallies.
Foreign equity exposure, on the other hand, fell 6.45%, echoing valuation pressures and conservative FX repositioning.
Total allocation to equities (domestic + foreign) represents about 15.39% of total pension assets.
The alternatives segment delivered mixed outcomes:
Mutual funds advanced 1.32% to N221.88 billion, buoyed by moderate growth of 2.22% and 0.21% in open/close-ended funds and Real Estate Investment Trusts (REITs), respectively.
Cash & other assets declined sharply by 16.79% from N518.95 billion to N431.84 billion in October, reallocating into higher-yielding money-market and government securities.
Across the Retirement Savings Account (RSA) structure, the distribution remained consistent with historical trends, as Fund II remains the largest and most actively managed segment of the industry:
October 2025 reinforced the pension industry’s steady resilience, even amid macroeconomic turbulence. The asset mix shows a sector leaning heavily into safety, liquidity, and predictable returns—evident in strong flows into FGN securities and money market instruments.
At over N26.66 trillion, Nigeria’s pension industry remains a major stabilizing force in the financial markets, with PFAs continuing to navigate the tightrope between risk management and return optimization.
At over N26.66 trillion, Nigeria’s pension industry remains a major stabilizing force in the financial markets, with PFAs continuing to navigate the tightrope between risk management and return optimization.