Nigeria’s pension industry continued its steady climb in September 2025, with total pension assets rising to N26.09 trillion, up from N25.90 trillion in August.

The increase represents 0.75 percent month-on-month growth and a strong 23.44 percent surge year-on-year, underscoring sustained investor confidence despite mixed capital market conditions.

Fresh figures released by the National Pension Commission show that contributor registration under the Contributory Pension Scheme (CPS) also inched upward, growing 0.42 percent to 10.93 million, marking continued onboarding of new participants even as economic challenges persist.

Government instruments remain the pension industry’s investment anchor, though the numbers were mixed in September.

Total FGN Securities dipped 0.50 percent to N15.75 trillion, driven largely by FGN Bonds held to maturity which were down 3.37 percent to N12.84 trillion.

Two other categories in this sector also posted declines, with Sukuk down 5.83 percent and Agency Bonds moving sharply lower by 18.42 percent.
However, the industry saw notable gains in other government instruments, as Treasury Bills jumped 2.50 percent to N616.33 billion.

Green Bonds climbed 7.69 percent to N13.46 billion, while State Government Securities rose 1.33 percent to N240.91 billion.

Despite these movements, government instruments still account for 60.35 percent of total pension assets, reflecting the industry’s conservative posture amid inflationary pressure, exchange rate volatility, and macroeconomic uncertainty.

Equity investments showed mild improvement, with domestic equities rising 1.47 percent to N3.66 trillion, representing 14.03 percent of total assets.

Foreign ordinary shares were almost flat, inching up 0.04 percent to N277.49 billion.

The performance suggests fund managers are gradually increasing exposure to the Nigerian stock market while maintaining a cautious stance.
Notably, total corporate debt securities nudged higher, up 0.12 percent to N2.24 trillion.

Corporate Bonds held to maturity gained 1.41 percent to N1.41 trillion, while Corporate Bonds available for sale declined 2.29 percent to N785.39 billion.

Corporate debt now accounts for 8.58 percent of total pension assets, showing slow but positive momentum despite divergent performance across categories.

Money market investments continued to provide stability, rising 0.74 percent to N2.42 trillion.

Key contributors to this growth included fixed deposits and bank acceptances, which grew 6.14 percent to N1.99 trillion, and foreign money market instruments, which surged 31.73 percent to N124.02 billion.

Commercial paper, however, declined 29 percent, though the segment still accounts for 9.29 percent of pension assets, supported by attractive short-term yields.

Regarding alternative investment performance, Mutual funds fell 3.32 percent to N218.98 billion, indicating a more cautious stance by PFAs in these categories.

Conversely, REITs surged 23.61 percent to N98.11 billion, reflecting renewed investor interest in real estate-backed securities.

Open and Close-end funds tumbled 17.84 percent to N120.88 billion, while Private equity declined 4.66 percent to N260.53 billion, and real estate assets dipped 4.42 percent to N243.35 billion.
Despite their performance, alternatives still account for just 0.84 percent of total pension assets, indicating significant growth potential as the market matures.

One notable movement in September was the significant jump in cash holdings and other residual assets, which spiked 78.45 percent to N518.95 billion, now contributing 1.99 percent of total pension assets, which may reflect tactical shifts toward liquidity amid market swings.

Among RSA funds and legacy schemes, Fund II, the most popular fund for active contributors, rose marginally at 0.50 percent, from N10.90 trillion to N10.96 trillion.

This fund contributed 42.1 percent to the total assets, highlighting strong inflows and solid investment returns.

Fund III, designed for older contributors, also saw a modest 0.61 percent rise to N6.73 trillion, contributing 25.82 percent to the asset portfolio.

Fund I grew by 1.86 percent to N396.39 billion, while Fund IV increased by 2.98 percent, reflecting the conservative nature of its portfolio.

Fund V and Fund VI, which caters to micro-pensions, recorded moderate growths of 1.79 percent and 5.76 percent respectively.

Existing Schemes and CPFAs contributed by 12.01 percent and 10.47 percent to the total asset funds, respectively, reinforcing the growth trajectory across legacy and institutional schemes.

The September 2025 data reinforce a clear narrative that Nigeria’s pension industry remains resilient, expanding assets despite persistent market fluctuations and macroeconomic pressure.

Government bonds continue to dominate due to their relative safety, but the measured rise in equities and REITs indicates growing diversification and a gradual appetite for market-driven returns.

For contributors, this means that the pension assets remain secure and growing, as fund managers are tilting portfolios cautiously toward higher-return opportunities.

Also, the system continues to maintain stability even under challenging economic conditions.

Overall, the numbers show a pension sector that is not just sustaining momentum, but evolving.