Nigeria’s Pension Fund Assets Surpass ₦25tn Milestone Amid Regulatory Reforms

Nigeria’s pension industry has crossed a major milestone, with total pension fund assets rising above ₦25 trillion for the first time. According to the latest data from the National Pension Commission (PenCom), assets stood at ₦25.89tn as of August 2025, reflecting sustained growth and investor confidence in the Contributory Pension Scheme.

The industry first breached the ₦25tn mark in July 2025, closing at ₦25.79tn, before adding another ₦97.88bn in August. Overall, pension assets expanded by ₦1.26tn (5.14%) between June and August, compared to ₦24.62tn in June.

Asset Allocation Trends

The August breakdown shows that Federal Government securities remain the backbone of pension investments, accounting for ₦15.82tn. Within this category, FGN bonds made up ₦13.28tn, while treasury bills, sukuk, and green bonds contributed the balance.

Other key allocations include:

• Domestic equities: ₦3.61tn

• Corporate debt securities: ₦2.23tn

• Money market instruments (fixed deposits & commercial papers): ₦2.41tn

• Alternative assets: Real estate (₦254.60bn), private equity (₦273.27bn), infrastructure funds (₦241.49bn)

• Mutual funds: ₦226.49bn

• Supranational bonds: ₦21.62bn

Fund Structure & Membership

By structure, RSA Fund II remained dominant with ₦10.90tn, followed by RSA Fund III at ₦6.69tn. RSA Fund I and RSA Fund VI stood at ₦389.15bn and ₦181.23bn, respectively.

Membership under the Contributory Pension Scheme (CPS) grew to 10.88 million contributors by August 2025, up from 10.79 million in June, reflecting increased participation and coverage.

Regulatory Reforms: Strengthening the Sector

The asset growth comes as PenCom introduces fresh recapitalisation guidelines aimed at strengthening Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs).

• PFAs:

  • Category A (AUM ≥ ₦500bn): Minimum capital of ₦20bn + 1% of AUM above ₦500bn.

  • Category B (AUM < ₦500bn): Capital requirement of ₦20bn.

  • Category C (Special PFAs): NPF Pensions (₦30bn) and Nigerian University Pension Management Company (₦20bn).

  • New PFA licences will require a minimum capital of ₦20bn effective immediately.

• PFCs:

  • Capital base revised from the ₦2bn set in 2004 to ₦25bn + 0.1% of Assets Under Custody, measured as shareholders’ funds unimpaired by losses.

PenCom has given industry operators until December 31, 2026, to comply with the new requirements.

Outlook

Industry analysts say the growth trajectory of pension assets underscores the increasing role of pension funds in Nigeria’s capital markets and the wider economy. The combination of strong allocations to government securities, diversification into alternative assets, and regulatory reforms is expected to further consolidate the sector’s resilience and deepen its impact on long-term economic development.