Nigeria’s pension industry recorded strong growth over the past year, with total assets under management climbing by 22 percent to ₦26.7 trillion as of the end of October.
Analysts at the Pension Fund Operators Association of Nigeria (PenOp) attributed the expansion to improved market performance, rising pension contributions, and increased diversification across multiple investment classes.
Investments in domestic equities rose sharply, increasing by 82 percent from ₦2.11 trillion to ₦3.84 trillion, a trend analysts say reflects growing confidence in the stock market and long-term growth prospects.
Federal Government of Nigeria (FGN) securities also saw notable gains, recording the largest increase among conventional assets. Holdings grew by 17.6 percent, rising from ₦13.57 trillion to ₦15.96 trillion, as pension managers strengthened their exposure to government-backed instruments.
Allocations to money market instruments expanded by 30.9 percent, from ₦2.20 trillion to ₦2.88 trillion, driven by attractive short-term yields and a preference for higher liquidity positions.
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Pension fund exposure to mutual funds more than doubled during the period, growing by 107.6 percent from ₦106.85 billion to ₦221.86 billion. Analysts said this reflects increasing participation in long-term development-focused investments.
Infrastructure fund investments also recorded significant growth, rising by 48.1 percent to ₦262.57 billion, up from ₦177.24 billion, underscoring a shift toward diversified pooled investment vehicles. Similarly, private equity holdings expanded by 89.5 percent to ₦233.10 billion, compared with ₦123.04 billion previously, indicating a growing interest in alternative assets.
PenOp noted that the broad-based growth across both traditional and alternative assets reinforces the pension sector’s growing contribution to capital market development and overall economic expansion.
In its third-quarter industry performance report, the National Pension Commission (PenCom) said ongoing reforms have strengthened stability, boosted confidence, and supported sustained growth in Nigeria’s pension system, describing the period as one marked by resilience and reform-led progress.
