Pension assets rise to N28trn as contributors surpass 11m

Nigeria’s pension fund industry recorded a strong start to 2026, with total pension assets rising to N28.04 trillion as of January 31, 2026, reflecting continued growth in both investments and contributor participation.

According to the latest unaudited portfolio report from the National Pension Commission (PenCom), the industry’s assets increased by 22.64 per cent from N22.86 trillion recorded in January 2025.

On a monthly basis, the industry also witnessed a significant increase of N580.22 billion, growing from a net asset value of N27.46 trillion at the end of the previous period.

Overall, the pension industry added N5.17 trillion to its asset base within one year, highlighting sustained expansion driven by steady contributions and improved investment performance.

The growth also coincided with an increase in the number of contributors. Membership under the Registered Savings Account (RSA) scheme rose to 11,084,127 as of January 2026.

Investment in Federal Government of Nigeria securities continues to dominate the portfolio, accounting for N16.69 trillion of the total pension assets.

Within this category, Federal Government Bonds held to maturity remain the largest investment vehicle, valued at N13.16 trillion. Other government securities include Treasury Bills worth N894.09 billion, Sukuk bonds totalling over N100.18 billion, and Green Bonds valued at N18.30 billion.

The industry also maintained a strong presence in the capital market. Investments in domestic ordinary shares amounted to N4.29 trillion across various pension funds.

Foreign ordinary shares, valued at N262.99 billion, are held exclusively within Closed Pension Fund Administrators.

Corporate debt securities also form a notable part of the portfolio, standing at N2.24 trillion. This includes N1.45 trillion in corporate bonds and N67.42 billion invested in corporate infrastructure bonds.

To maintain liquidity, the pension industry holds N2.75 trillion in money market instruments, with the majority—N2.48 trillion—invested in fixed deposits and bank acceptances.

Alternative investments also continue to support portfolio diversification. Infrastructure funds accounted for N292.32 billion, private equity investments stood at N241.85 billion, real estate investments were valued at N170.04 billion, while mutual funds attracted N240.49 billion.

Among the different pension fund categories, RSA Fund II remains the largest with a net asset value of N11.86 trillion, followed by RSA Fund III with N7.19 trillion.

RSA Fund IV, which is primarily designed for retirees, recorded assets worth N2.27 trillion, reflecting the industry’s focus on providing stable returns for pensioners.

As of the end of January, the industry also maintained a strong liquidity position, with cash and other assets valued at N450.44 billion.