Nigeria’s pension fund industry recorded a modest gain in August 2025, as fund managers cautiously rebalanced portfolios in response to mixed market signals.

Data from the National Pension Commission showed total assets under management rose to ₦25.90 trillion in August, up ₦97.88 billion from ₦25.80 trillion in July according to Nairameteics.

The 0.38 per cent month-on-month growth, though small, underscores the industry’s resilience amid ongoing market volatility.

Federal Government securities maintained their lead, making up 61.11 per cent of total pension assets. Investments in this segment rose by ₦178.94 billion (1.14 per cent) to ₦15.82 trillion in August, driven by:

FGN Bonds (HTM): up 3.50% to ₦13.28 trillion, representing 51.30 per cent of total assets.

Treasury Bills: posted a mild increase of 0.81 per cent

Agency Bonds (NMRC & FMBN): advanced 4.01 per cent.

Green Bonds: recorded the sharpest growth, surging 17.89 per cent.

However, Sukuk Bonds recorded a steep drop of 61.51 per cent, pointing to major maturities or a strategic reallocation by pension fund managers.

Domestic Ordinary Shares fell 4.40% (₦165.99 billion) to ₦3.61 trillion, accounting for 13.93 per cent of total assets and underscoring bearish sentiment in Nigeria’s stock market.

Foreign Ordinary Shares rose 2.27 per cent, signaling a cautious push toward offshore diversification.

This contrast reflects pension fund managers’ defensive posture on local equities amid persistent macroeconomic headwinds.

Meanwhile, Corporate Debt Securities slipped 0.44 per cent to ₦2.23 trillion, representing 8.63 per cent of total assets.

Mutual Funds climbed 10 per cent to ₦226.49 billion, led by a 35.60 per cent surge in open and close-end funds—the strongest growth among all asset categories.

In contrast, Real Estate Investment Trusts dropped 18.51 per cent weighed down by sector challenges and valuation pressures.

Private Equity and Infrastructure Funds delivered solid gains of 22.31 per cent and 3.14 per cent respectively, while Cash and Other Assets declined 9.04 per cent