Nigeria’s Pension Fund Administrators (PFAs) closed August on a cautious note, with mixed performances across the various Retirement Savings Account (RSA) Funds, as market volatility driven largely by sell-offs in key equity sectors weighed heavily on fund performance.
Data compiled by this medium Research show that while some PFAs managed to sustain positive returns, others recorded declines as equities closed the month in negative territory.
Overall, the pension industry returned an average of 0.40% in August, a steep slowdown from the 5.68% average return recorded in July.
By fund category, RSA Fund I shed 0.18%, RSA Fund II posted a marginal 0.06%, RSA Fund III advanced 0.64%, while the conservative RSA Fund IV outperformed with 1.09%.
The stock (equities) market effect
The Nigerian stock market began August on a bullish note, with the NGX All-Share Index climbing above 146,000 points mid-month.
However, momentum reversed sharply in the final two weeks, as profit-taking and declines in cement, banking, and insurance stocks dragged the index down by over 5,000 points. The ASI closed the month at 140,295.49 points, representing a 3.94% decline.
Given the multi-fund structure which allows higher equity allocations in Funds I and II and more conservative positioning in Funds III and IV this downturn had a direct impact on performance. Funds I and II, with higher risk exposure, underperformed, while the fixed-income heavy Fund IV posted stronger returns.
PFAs that outperformed
A few PFAs defied the market downturn to deliver above-average results:
- Nigeria Police Force Pensions Limited topped the charts, averaging 4.09%, with stellar returns of 5.52% (Fund I), 4.02% (Fund II), 3.38% (Fund III), and 3.43% (Fund IV). This performance reflects effective tactical allocation and risk management.
- OAK Pensions Limited returned an average of 0.88%, driven by strong gains in Fund II (1.88%) and Fund IV (1.28%).
- Guaranty Trust Pension Managers averaged 0.73%, sustaining positive returns across all RSA funds.
- NLPC Pension Fund Administrators Limited posted 0.71%, led by 1.08% in Fund I.
- Veritas Glanvills Pensions Limited returned 0.65%, boosted by its Fund III and Fund IV performance.
Other PFAs with moderate performances include:
- Stanbic IBTC Pension Managers Limited (0.51%)
- Premium Pension Limited (0.47%)
- Norrenberger Pensions (0.20%)
- Fidelity Pension Managers Limited (0.17%)
- Trustfund Pensions Plc (0.08%)
- FCMB Pensions Limited (0.05%)
PFAs in the Red
Several PFAs closed August with negative returns, underscoring the impact of equity market losses:
- Tangerine Apt Pensions (-0.58%)
- Crusader Sterling Pensions Limited (-0.34%)
- Pensions Alliance Limited (-0.32%)
- Radix Pension Fund Managers (-0.31%)
- Leadway Pensure PFA Limited (-0.12%)
RSA Fund I Performance
RSA Fund I, an aggressive portfolio, dragged down by equities, closed the month with a negative average return of 0.18%.
Top 3 Performers:
- Nigeria Police Force Pensions Limited (5.52%)
- NLPC Pension Fund Administrators Limited (1.08%)
- Stanbic IBTC Pension Managers Limited (0.76%)
Only 6 out of the 17 participating Pension Fund Administrators (PFAs) recorded positive returns, with Tangerine Apt Pensions posting the lowest return at -2.47%.
RSA Fund II Performance
RSA Fund II, tailored for medium-risk contributors under 50, posted a marginal average return of 0.06% in August 2025, reflecting a decline in the performance of the pension saving accounts across the category.
Top 3 Performers:
- Nigeria Police Force Pensions Limited – 4.02%
- OAK Pensions Limited – 1.88%
- Guaranty Trust Pension Managers – 0.80%
RSA Fund III Performance
RSA Fund III, designed for contributors above 50, supported by fixed-income resilience, with a 0.64% average return in August 2025.
Top 3 Performers:
- Nigeria Police Force Pensions Limited – 3.38%
- Veritas Glanvills Pensions Limited – 0.94%
- Guaranty Trust Pension Managers – 0.79%
RSA Fund IV Performance
Conservative retiree fund, best performer overall with 1.09% return in August 2025 among the four RSA funds.
Top 3 Performers:
- Nigeria Police Force Pensions Limited – 3.43%
- Veritas Glanvills Pensions Limited – 0.94%
- Guaranty Trust Pension Managers – 0.85%
What you should know
The August 2025 performance once again highlighted the sensitivity of PFAs’ returns to equity market swings. While conservative funds provided stability, equity-heavy funds took a hit.
As Nigeria’s pension industry continues to deepen, PFAs face the dual challenge of protecting contributors’ savings while adapting to evolving market dynamics ranging from interest rate shifts to ESG-driven investment trends. For contributors, this underscores the importance of tracking their PFAs’ performance and understanding the risk profiles of the RSA funds they are invested in.
