Nigeria’s pension assets increased by N570 billion in October this year, peaking at N26.66 trillion and representing a 2.19% rise month-on-month and 21.63% increase year-on-year, the National Pension Commission (PenCom) has reported.
The latest data released by the Commission on the accruals to the pension savings indicated that Nigerians saving through the pension system increased in the month, as the Retirement Savings Account enrolment rose from 10.93 million contributors in September to 10.97 million in October, representing 0.39% growth month-on-month.
The report showed that Federal Government securities remained the biggest contributor in the pension industry as Treasury bills, bonds and related instruments holdings slightly rose to N15.96 trillion, accounting for nearly 60% of total pension assets.
An analysis of the data reflected that Short-term Treasury bills recorded strong inflows as yields remained attractive to investors just as Federal Government bonds held to maturity continued to dominate the portfolio at N13.88 trillion, representing more than half of all pension assets during the month under review.
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Similarly, Sukuk bonds and green bonds recorded gains, reflecting government and other private sector issuers’ efforts to diversify within low-risk instruments and explore the opportunities into assets linked to infrastructure and sustainability.
Overall, the preference for government paper signals a clear risk-off mood as fund managers seek shelter from volatility in equities and foreign exchange markets.
One of the most striking shifts in October 2025 pension industry performance was the surge in money market investments as pension exposure to this segment surged by nearly 19%, rising from N2.42 trillion to N2.88 trillion and implying that one-tenth of all pension assets are now parked in money market instruments.
This is even as fixed deposits and bank acceptances led the charge as PFAs continued to run after higher short-term returns and kept cash handy in an uncertain environment while foreign money market investments significantly dropped, reflecting the impact of Naira exchange rate movements and valuation losses linked to the currency volatility. However, commercial papers still recorded modest growth, suggesting investors’ selective appetite for high-quality issuers.
The PenCom’s data showed that investments in corporate bonds declined by 3.41% to N2.16 trillion, now representing just over 8% the total pension assets, and that the drop cut across bonds held to maturity, those available for sale and infrastructure bonds.
During the month under review, equities delivered mixed results as the Nigerian equities market modestly rebounded, with domestic equity holdings appreciating in value by about five per cent to N3.84 trillion, thereby accounting for about 15% of pension assets.
The report revealed that Alternative investments produced uneven outcomes with Mutual funds posting mild growth, while infrastructure funds remarkably increased, indicating a renewed interest in projects tied to the real economy.
According to the commission, Private equity holdings declined, reflecting valuation adjustments and restrained new commitments; Real estate recorded significant decline, possibly due to portfolio restructuring or markdowns in property values, holdings in supranational bonds dipped, while cash and other assets also dropped as funds were reallocated into higher-yielding government and money market instruments.
A further appraisal of the pension assets data showed that across the different pension fund categories, growth remained broad-based. For instance, Fund II, which serves most active contributors under 50, remained the largest pool at N11.25 trillion, accounting for over 42% of the total assets and Fund III, for contributors aged 50 and above, also grew to N6.85 trillion.
The report reflected that some more aggressive and specialised funds, including Shariah-compliant and micro-pension funds, gained during the month under review, indicating that participation and returns are spreading across the broad spectrum of the specialized funds.
