FG Securities, Equities Dominate N28trn Pension Assets

Nigeria’s pension fund assets rose to ₦28.04 trillion as of January 31, 2026, with Federal Government securities and domestic equities accounting for 74.85% of the total portfolio, according to the National Pension Commission (PenCom).

The unaudited industry report showed that pension assets grew by ₦580.22bn in January, up from ₦27.46 trillion in December 2025, while year-on-year growth stood at ₦5.17 trillion.

FGN securities dominated the portfolio with ₦16.7 trillion, including bonds and treasury bills, while domestic ordinary shares contributed ₦4.29 trillion. Analysts said the heavy concentration reflects regulatory limits and fund managers’ preference for safety.

Other asset classes also featured in the portfolio. Corporate debt securities totaled ₦2.23 trillion, while money market instruments contributed ₦2.75 trillion. Foreign ordinary shares accounted for ₦262.99bn, largely under Fund I allocations.

PenCom noted that Nigeria’s pension system operates multiple funds — Fund I, II, III, and IV — structured by contributors’ age and risk appetite, with younger contributors placed in higher-growth funds.

The Revised Pension Investment Regulations allow up to 100% allocation to FGN securities, while equities are capped at 25%. Corporate bonds can account for up to 30%, money market instruments up to 35%, and infrastructure funds up to 10%.

Analysts say the rising asset base underscores the resilience of Nigeria’s pension industry, though the concentration in government securities highlights limited diversification.

PenCom added that the framework aims to balance safety with moderate returns, ensuring contributors’ retirement savings are protected while supporting economic growth through regulated investments.