The Pension Fund Administration (PFAs) exposure in Federal Government securities and in the domestic stock market increased to N17.22 trillion in four months of 2025.
This according to data released by the National Pension Commission (PenCom).
The FGN Securities, according to PenCom comprises: FGN Bonds (HTM), Nigerian Treasury Bills (NTBs), Agency Bonds (NMRC), Sukuk Bonds and Green Bonds.
The latest data by PenCom revealed that PFAs exposure in both FGN Bonds and stock market opened January 2025 at N16.72 trillion, adding N510.65 billion or 3.05per cent to close April 2025 at N17.22 trillion.
The breakdown revealed that PFAs stake in FGN bond increased from N14.31 trillion in January 2025 about 2.40 per cent increase to N14.65 trillion in April 2025, while in the stock market the PFAs exposure stood at N2.57 trillion, representing an increase oof 6.9 per cent from N2.41 trillion declared by PenCom in January 2025.
The combined PFAs investment in FGN securities and stock market have contributed about 72.8per cent of the N23.65 trillion net assets value as of April 2025.
Analysts have attributed PFAs increasing exposure in stock market to increasing fundamentals of some listed companies, stressing that lucrative yield and risk-free government securities continued to influence PFAs exposure in FGN Bonds.
The likes of Nigerian Treasury Bills in 2025 has witnessed significant patronage by investors with yield over 20 per cent on one-year auction.
Local and foreign investors seem to respond positively to the double-digit interest rates on NTBs, as seen in the robust subscription rates, suggesting confidence in the CBN’s ability to manage the country’s monetary challenges amid scarcity of foreign exchange and double-dight inflation rate.
Meanwhile, the participation by PFAs in the stock market in the first four months of 2025 lifted the market capitalization by N3.73 trillion to N66.496 trillion as of April, 30, 2025.
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