Government Securities Boost Pension Assets to N30.94tr
By Patience Ikpeme
Nigeria’s pension assets rose by N1.42 trillion in April to a record N30.94 trillion, driven largely by heavy allocations to federal government securities, the National Pension Commission (PenCom) said in its latest industry portfolio report.
Total pension assets increased from N29.52 trillion in March to N30.94 trillion in April, a month‑on‑month rise of 4.8 percent, reflecting continued expansion of the contributory pension scheme amid a high‑interest‑rate environment that has lifted yields on fixed‑income instruments.
“Higher yields on government debt have made federal securities a natural home for pension funds seeking capital preservation and predictable returns,” a PenCom spokesperson said. The report shows pension fund administrators (PFAs) held N17.36 trillion in federal government securities at the end of April, representing about 56 percent of total assets.
Breakdown of holdings shows N13.40 trillion invested in federal government bonds classified as held to maturity and N2.73 trillion in available‑for‑sale government bonds, while treasury bill holdings stood at N1.11 trillion. The government‑debt preference extends to Sukuk, green bonds and agency bonds included in PFAs’ portfolios.
Domestic equities remained the second‑largest asset class, with N6.51 trillion in local stock investments and an additional N269.25 billion in foreign equities, bringing total equity exposure to about N6.78 trillion. Corporate debt securities accounted for N2.25 trillion and money market instruments for N2.66 trillion.
Other asset classes were smaller: mutual funds at N262.58 billion, private equity at N256.96 billion and real estate at N167.33 billion. Infrastructure allocations remain modest despite policy efforts to channel pension capital into long‑term projects, with infrastructure fund investments of N312.61 billion and corporate infrastructure bonds of N49.68 billion.
“Pension funds are balancing long‑term development objectives with fiduciary duties to preserve contributors’ capital,” said an industry analyst. “Until yields on alternative long‑term assets and the risk‑reward profile improve, government securities will dominate allocations.”
By RSA category, Fund II remained the largest with net assets of N13.36 trillion, followed by Fund III at N7.81 trillion. PenCom also reported RSA membership rose to 11.23 million contributors as of April 2026, underscoring gradual growth in pension coverage.
The report attributes the sector’s upward trajectory to new contributions from workers and employers, investment income and rising participation in the contributory scheme, even as policymakers continue to seek ways to redirect a larger share of pension capital into infrastructure and development finance.
