By Bakare Olatunde
The National Pension Commission (PenCom) has attributed the pension fund assets increase of 1.77 per cent in the first quarter of this year to a strategic asset allocation and a diversified investment approach that has always sustained the fund’s upward trajectory in the country.
This was revealed in the monthly data released by the commission displayed on its website, showing that the pension fund assets increased a 1.77 per cent compared to N22.86 trillion recorded in January this year, as it reflects ongoing stability in Nigeria’s pension industry.
According to the report, in February this year, the total net asset value (NAV) of the pension fund stood at N23.26 trillion, up from N22.86 trillion the previous month. Particularly, the pension funds remain heavily invested in the federal government securities, which account for N14.46 trillion or 62.18 per cent of the total net asset value.
The report also highlighted some other areas of investments include: Corporate Debt Securities of N2.32 trillion, Money Market Instruments of N2.21 trillion, Ordinary Shares (Local Companies): N2.58 trillion, showing a 7.33 per cent increase from N2.40 trillion in January.
Ordinary Shares (Foreign Companies); N267.72 billion, Federal Government Bonds; N12.25 trillion, while State Government Securities; N246.69 billion.
The report also explained a rebound in money market instruments, which witnessed a growth to N2.21 trillion in February from N2.18 trillion in January. Moreover, there was a notable increase in Commercial Paper: +30.17 per cent, Foreign Money Market Instruments: +7.77 per cent.
However, some allocations experienced declines, such as State Government Securities: A 0.85 per cent decrease to N246.69 billion, Supranational Bonds: A significant 29.76 per cent decrease to N19.56 billion. Mutual Funds: A 9.08 per cent decline to N84.76 billion from N93.22 billion in the prior month.
The commission report also stressed that the Cash and Other Assets: A 7.72 per cent reduction to N399.51 billion, while Fund Allocation Insight Fund II, the default RSA Fund under the Multi-Fund Structure, continues to lead with the largest share of the active RSA fund allocation. It accounted for N9.61 trillion, representing 41.33 per cent of the total net asset value.
The report also highlighted how Fund III saw a slight increase of 0.74 per cent, rising from N6.01 trillion to N6.05 trillion, securing its position as the second-largest fund.
The number of RSA members grew by 0.34 per cent, reaching 10,650,990 in February 2025, up from 10,615,028 members in January 2025.
The total value of Nigeria’s pension fund assets has grown from N19.75 trillion in February 2024 to N23.26 trillion in February 2025, marking an impressive 17.75 per cent increase year-on-year.
From 2023 to February 2025, pension fund assets increased by N4.91 trillion, from N18.36 trillion to N23.26 trillion.
This growth is largely driven by a surge in pension fund contributions and an increase in the value of investments, particularly FGN Securities, which saw its net asset value rise from N12.37 trillion in February 2024 to N14.46 trillion in February 2025.
