Pension Fund Administrators’ Investment In Stocks Hits N3.61trn in 1 Year

Pension Fund Administrators (PFAs) person importantly accrued their equity investments implicit the past year, jumping by 86 per cent, fuelled by amended marketplace conditions, diversification strategies, and increasing capitalist confidence.

Analysts person noted that this represents a large displacement from the traditionally cautious attack that favoured fixed income, particularly Federal Government of Nigeria (FGN) securities.
Figures from the National Pension Commission (PenCom), arsenic analysed by the Pension Fund Operators Association of Nigeria (PenOp), uncover that PFAs’ equity holdings surged from N1.94 trillion successful August 2024 to N3.61 trillion by August 2025.

PenOp analysts property this emergence to a robust banal marketplace and renewed religion successful superior marketplace prospects.
While FGN securities stay the largest holding, they posted a mean maturation of 18 per cent, expanding from N13.4 trillion to N15.82 trillion, arsenic PFAs progressively sought higher-yielding investments beyond authorities bonds.Investments successful wealth marketplace instruments besides climbed 18 per cent, from N2.04 trillion to N2.4 trillion, reflecting ongoing penchant for liquid, short-term assets.

However, PenOp’s caput of Research & Investor Relations, Akinbola Akintola, highlighted that alternate assets performed adjacent stronger: communal funds expanded by 123 per cent (from N101.31 cardinal to N226.49 billion), backstage equity soared 153 per cent (from N107.81 cardinal to N273.27 billion), and existent property grew by 27 per cent (from N199.8 cardinal to N254.6 billion).

He noted that PenCom’s caller concern guidelines, released successful September 2025 — raising allocation limits for equities, backstage equity, and existent property portion lowering the headdress connected FGN securities — are expected to accelerate this diversification trend.

Pension money values roseate markedly from August 2024 to August 2025, supported by dependable contributor inflows and beardown returns.

Fund I, the astir risk-averse, accrued by astir 79 per cent, climbing from N217.03 cardinal to N389.15 billion.

Fund II roseate 25 per cent from N8.73 trillion to N10.9 trillion, demonstrating coagulated capitalist sentiment.
Fund III grew 23 per cent, from N5.59 trillion to N6.88 trillion; Fund IV gained 25 per cent, moving from N1.51 trillion to N1.89 trillion.

Fund V besides registered an awesome 63.5 per cent growth, jumping from N968.27 cardinal to N1.58 billion. In comparison, Fund VI outpaced each with a 157 per cent surge, soaring from N70.63 cardinal to N181.23 billion, reflecting its assertive concern approach.

PenOp analysts emphasised that this wide maturation crossed each six pension funds underscores accrued contributions and astute money absorption done diversified portfolios, signifying enhanced assurance successful Nigeria’s pension strategy and a promising aboriginal for status savings.

As of July 2025, the industry’s full pension assets reached N25.79 trillion, with Retirement Savings Account (RSA) contributors numbering 10.83 million.