Nigeria’s pension fund industry has continued on a positive trajectory, with the total assets under the Contributory Pension Scheme (CPS) surging to ₦23.33 trillion as at the end of March 2025. This was revealed by the National Pension Commission (PenCom) during an official briefing held in Lagos on Thursday.
According to Mr. Saleem Abdulrahman, the Commission’s Director of Surveillance, the new figure reflects a significant increase of ₦820 billion when compared to the ₦22.51 trillion recorded on December 31, 2024. The growth, he said, was largely driven by consistent monthly contributions from Retirement Savings Account (RSA) holders and strong investment returns, particularly gains in equity markets and interest income on fixed-income instruments.
Mr. Abdulrahman further explained that a substantial portion of the pension assets, ₦17.90 trillion, representing 76.73 percent, was held under the RSA Funds I to VI. Existing Pension Schemes, mainly legacy schemes maintained before the commencement of the CPS in 2004, accounted for ₦2.77 trillion or 11.87 percent, while Closed Pension Funds, which are operated by some organisations independently under PenCom’s regulatory framework, contributed ₦2.66 trillion, or 11.40 percent of the total assets.
The asset allocation also reveals a dominant preference for low-risk instruments, with Federal Government Securities commanding the lion’s share of investments at 62.09 percent. This is in line with industry risk guidelines that favour stability and steady returns. Domestic ordinary shares made up 11.02 percent of total investments, reflecting renewed confidence in the equities market, while money market instruments, including commercial papers and bank placements, accounted for 8.91 percent.
Speaking on performance, the PenCom Director noted that the industry recorded a robust year-to-date annualised return of 19.29 percent as of March 31, a significant indicator of recovery and strategic asset management within the sector.
As part of efforts to improve portfolio diversification and ensure better long-term returns, the Commission, in partnership with Financial Sector Deepening Africa (FSD Africa), is organising a high-level workshop on investment in alternative assets. The event is targeted at chairpersons of the Board Investment Strategy and Risk Management Committees of Pension Fund Administrators (PFAs).
Mr. Abdulrahman stressed that the workshop forms part of PenCom’s broader strategy to enhance risk-adjusted returns and deepen the Nigerian pension industry’s capacity to invest safely in alternative asset classes, including infrastructure, private equity, and real estate.
With this growth momentum, PenCom has reiterated its commitment to safeguarding pension assets, ensuring sustainable investments, and securing the retirement benefits of contributors across the country.
