FGN Securities Drive Nigeria's Pension Assets to N27.45 Trillion High
Nigeria's pension industry has recorded robust growth, with total assets under management rising to N27.45 trillion as of December 2025, according to the latest unaudited portfolio report from the National Pension Commission (PenCom).
This represents a significant 22% increase (or approximately N4.94 trillion added) over the year, up from N22.86 trillion in January 2025. The surge is largely attributed to attractive yields on investments in Federal Government of Nigeria (FGN) securities, which remain the dominant asset class in pension portfolios.
PenCom data shows FGN securities accounted for about N16.33 trillion—or roughly 59.5%—of total assets in December 2025, serving as the stable backbone amid macroeconomic challenges. This allocation provided resilience through predictable returns, even as other asset classes like domestic equities saw strong gains (up 64.36% year-to-date in some reports).
The growth reflects a combination of factors:
Sustained contribution inflows from the formal sector.
Improved market conditions, including gains in equities and alternative investments.
Effective asset management by Pension Fund Administrators (PFAs), with a defensive posture toward year-end contributing to modest month-on-month increases (e.g., 1.48% from November's N27.05 trillion).
Analysts note that FGN securities' performance—driven by higher yields—has been pivotal in boosting the Net Asset Value (NAV), underscoring their role in preserving capital for retirees while supporting overall industry expansion.
The pension sector's resilience highlights progress under the Contributory Pension Scheme (CPS), with over 10 million Retirement Savings Accounts (RSAs) now active. Recent regulatory adjustments, such as increased equity investment caps, are expected to further diversify portfolios and channel more funds into the Nigerian Exchange (NGX), potentially amplifying market liquidity.
Experts view this milestone as a positive signal for long-term retirement security in Nigeria, though calls persist for broader inclusion of informal sector workers to sustain momentum.
This development reinforces confidence in the pension system's stability and its growing influence on Nigeria's financial landscape.

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