Nigeria’s pension fund assets continued their upward trajectory in April 2025, rising to N23.65 trillion, up from N23.33 trillion recorded in March, representing a 1.40% month-on-month increase, according to data from the National Pension Commission (PenCom).
This growth reflects sustained investor confidence and strategic asset reallocations across both fixed-income and alternative investment classes, despite economic headwinds.
Here’s a detailed breakdown of how the funds were deployed and the asset classes that led the expansion.
Total allocation to Federal Government of Nigeria (FGN) Securities increased marginally by 1.76% to N14.65 trillion, accounting for 61.94% of total pension assets. The breakdown shows:
State government securities witnessed a slight 1.12% increase to N252.53 billion, indicating a marginal appetite for sub-national debt.
Corporate debt securities fell by 1.38% to N2.32 trillion, now making up 9.79% of total pension assets. Most of the decline came from Corporate Bonds (HTM), which dropped by -4.04% to N1.47 trillion.
The zero investment in Corporate Green Bonds continued for a second consecutive month, pointing to a lack of depth or appetite in that segment.
Total assets in money market instruments rose to N2.18 trillion from N2.08 trillion, accounting for 9.21% of pension portfolios. Notable changes include:
There was a sharp rise in exposure to Private Equities, which surged 40.10% to N230.18 billion, suggesting increased risk appetite and a search for higher returns.
Other notable changes:
Combined, equities now make up approximately 12.05% of total pension assets
Fund II, the default fund for active contributors below 49 years, retained its dominance with N9.83 trillion in assets, representing a commanding 41.54% of total pension assets. This underpins its role as the backbone of the pension system.
Other noteworthy movements:
Notably, Closed Pension Fund Administrators (CPFAs) and Approved Existing Schemes (AES) held N2.61 trillion and N2.80 trillion, marking solid double-digit growth of 11.01% and 11.85%, respectively.
The data for April 2025 confirms a cautious but evolving investment strategy among Nigeria’s Pension Fund Administrators (PFAs). While FGN securities continue to dominate allocations, the month saw increased interest in higher-yielding assets like private equity, commercial papers, and infrastructure bonds.
The uptick in foreign equity and private markets signals that PFAs are gradually seeking returns beyond the traditional safe havens — a trend likely to continue in a high-inflation, low-interest rate environment.
The uptick in foreign equity and private markets signals that PFAs are gradually seeking returns beyond the traditional safe havens — a trend likely to continue in a high-inflation, low-interest rate environment.