Nigeria’s pension industry maintained its steady performance in July 2025, delivering positive returns across all Retirement Savings Account (RSA) fund categories, despite macroeconomic headwinds and tighter financial conditions.
According to data compiled by Naijaonpoint Research, all 18 Pension Fund Administrators (PFAs) recorded gains, with FCMB Pensions Limited emerging as the top performer, posting a monthly average return of 5.68%, driven by strong returns across all RSA fund types.
The pension system’s average fund growth stood at 4.20% for the month, reinforcing investor confidence in the resilience and stability of Nigeria’s contributory pension scheme.
The month of July witnessed significant gains across the four RSA categories, with RSA Fund I (the high-risk, high-return category) which delivered the highest average return of 6.30%, driven by higher exposure to variable income instruments.
RSA Fund II, the default fund for active contributors under 50 years, posted a 5.33% on average return.
RSA Fund III, targeted at pre-retirees (50+), returned 2.06% gain, while RSA Fund IV, the most conservative fund for retirees, returned 1.47%, in line with its low-risk investment structure.
Based on the average percentage change across all RSA fund categories, the following Pension Fund Administrators emerged as the best performers in July 2025:
Other PFAs with solid performances include:
RSA Fund I Performance
RSA Fund I, designed for aggressive investors, led the charge with an average return of 6.30%. This fund’s performance was driven by strategic allocations to variable income instruments.
Top 3 Performers:
All 18 participating Pension Fund Administrators (PFAs) recorded positive returns, with NLPC Pension Fund Administrators Limited posting the lowest return at 1.18%.
RSA Fund II, tailored for contributors under 50 with a medium-risk appetite, posted an average return of 5.33% in July 2025, reflecting steady performance across the category.
Top 3 Performers:
All 18 participating PFAs recorded positive returns.
RSA Fund III, designed for contributors aged 50 and above, with a 3.18% average return in July 2025, RSA Fund III remained resilient amidst a volatile fixed-income market, securing its position as the third-best performing fund among the four RSA categories.
RSA Fund III, designed for contributors aged 50 and above, with a 3.18% average return in July 2025, RSA Fund III remained resilient amidst a volatile fixed-income market, securing its position as the third-best performing fund among the four RSA categories.
Top 3 Performers:
As the most conservative fund for retirees, RSA Fund IV posted a modest 1.99% return in July 2025, making it the lowest-performing category among the four RSA funds.
Top 3 Performers:
As of June 2025, Nigeria’s total pension fund assets stood at N24.63 trillion, according to the National Pension Commission (PenCom) — a 2.17% increase from N24.11 trillion in May.
A breakdown of the portfolio shows that Federal Government of Nigeria (FGN) securities remain the dominant asset class, accounting for 61.65% of total assets, amounting to N15.19 trillion.
Corporate debt securities and money market instruments represent 9.19% and 9.08%, respectively.
Meanwhile, investments in domestic equities rose to N3.08 trillion, or 12.51% of total assets, while mutual funds contributed 0.75%, totaling N183.82 billion.
Total RSA registrations reached 10.79 million as of June 2025, reflecting a 4.01%year-on-year growth.
The default fund for active contributors, RSA Fund II, remains the largest by NAV with N10.29 trillion, accounting for 41.81% of total assets.
RSA Fund III, designed for contributors aged 50 and above, expanded to N6.39 trillion, while RSA Fund IV, catering exclusively to retirees, recorded a moderate 2.14% month-on-month growth, reaching N1.83 trillion.