Pension Industry Commits N5.51tr to Real Sector Investments — PenCom
By Patience Ikpeme
The Nigerian pension industry has channelled a total of N5.51 trillion into asset classes that support long-term financing for real sector development, this is according to the National Pension Commission (PenCom).
These investments, which span infrastructure, private equity, real estate, and subnational initiatives, reflect the strategic deployment of pension funds toward national economic growth.
This disclosure was made during a meeting between the Commission and a delegation from the International Monetary Fund (IMF), led by Mr. Jose De Luna, Senior Financial Sector Expert. The visit formed part of the IMF’s 2025 Article IV Consultations and was held at PenCom headquarters on April 7, 2025.
Represented by the Head of the Surveillance Department, Abdulrahaman Muhammad Saleem, PenCom Director General Ms. Omolola Oloworaran told the delegation that pension fund investments in the real economy illustrate the sector’s contribution to sustainable development financing in Nigeria.
In a presentation to the IMF team, PenCom reported that the pension industry’s Net Asset Value (NAV) grew by 22.65%, from N18.36 trillion as of December 31, 2023, to N22.51 trillion by the end of 2024. The increase was driven by fresh contributions and investment income.
Despite the progress, the Commission raised concerns about the limited number of investment-grade instruments available in the Nigerian market. Currently, only 86 instruments within the pension broad index meet the minimum quality and liquidity requirements for pension fund investment, even though the Investment Regulation has made extensive provisions to expand eligible options.
PenCom stated that it is working with capital market stakeholders to expand the pool of investable financial instruments. The objective is to diversify pension portfolios and improve real returns for contributors.
The Commission also plans to boost investments in alternative asset classes to strengthen portfolio performance and reinforce the long-term sustainability of the Contributory Pension Scheme (CPS).
During the meeting, PenCom presented key updates on its investment strategy, asset quality, and regulatory concerns. It reaffirmed its ongoing collaboration with the Securities and Exchange Commission (SEC), the Debt Management Office (DMO), and the Pension Fund Operators Association of Nigeria (PenOp) to foster the development of diversified investment products suitable for pension funds.
In response, the IMF delegation commended PenCom for its role in deepening the country’s financial sector through prudent investment and regulatory oversight. The team also welcomed PenCom’s continued drive to broaden pension fund investment opportunities and acknowledged the Commission’s critical role in the industry’s consistent growth.
The meeting marks another step in Nigeria’s efforts to align pension fund strategy with broader macroeconomic goals and ensure stable long-term capital formation for national development.
