Victor EzejaNigeria’s pension funds industry has increased to N2.86 trillion as at January 2025. On a year-on-year basis, the pension fund recorded a growth of N3.33 trillion, reflecting 17.05 per cent when compared to January 2024 figure of N19.53 trillion.
This was revealed in an unaudited report on the pension funds industry portfolio for the period ended 31 January 2025, released by the National Pension Commission (PenCom).
Join our WhatsApp ChannelAccording to the report, Nigeria’s pension funds industry recorded a significant increase of N349.25 billion in January 2025 from the pension funds’ total net asset value of N22.51 trillion as of December 2024. This represents 1.54 per cent growth on a month-on-month basis.
While the pension industry ended the 2024 financial year with N22.512 trillion in net asset value, it recorded 10,582,299 in retirement savings accounts.
The report covers retirement savings accounts, closed pension fund administrators, approved current schemes, legacy funds, and unremitted contributions at the Central Bank of Nigeria.
The performance of the various pension fund types—including CPFAs, existing schemes, the several RSA funds (Fund I, Fund II, Fund III, Fund IV, Fund V, and Fund VI), and the Retiree Fund VI—combined to produce this growth.
Analysis of the asset allocation shows that domestic ordinary shares were a major component of the investment portfolio.
The total value of domestic ordinary shares owned by pension funds was N2.41 trillion as of January 2025. This high allocation implies that pension fund plans continue to heavily rely on investments in the local equity market.
A summary of the asset classes and their values for each fund type is also included in the report. For example, a total of N14.31 trillion worth of FGN securities, including treasury bills and other federal government bonds, were held. Other noteworthy asset types include corporate debt securities, which are worth N2.27 trillion, and money market instruments, which are worth N2.18 trillion. The amount allocated to mutual funds rose from N80.78 billion in December 2024 to N93.22 billion.
As of January 2025, 10,615,0281 people were members of the RSA, demonstrating the substantial number of people who had contributed to the pension system.
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The net asset value’s positive growth is a reflection of the industry’s combined efforts and investment returns.
The January data shows that Nigeria’s pension fund business is off to a good start this year, indicating its sustained expansion and importance in the country’s financial environment.
State governments have been asked by PenCom to adopt the Contributory Pension Scheme in order to support the business.
According to the pension industry regulator, only 11 states have commenced the implementation of the CPS as of December 2024. They are Lagos, Kaduna, Ekiti, Edo, Ondo, Delta, Benue, Anambra and Jigawa states, as well as the Federal Capital Territory.
Those yet to commence the implementation of CPS include: Akwa Ibom, Borno, Kwara, Plateau, Cross River and Yobe. “These states are encouraged to enact their CPS laws and commence implementation,” PenCom advised.
The Contributory Pension Scheme was introduced by the Pension Reform Act of 2004, which completely changed the way pensions are administered in Nigeria. This law increases the sustainability of pensions by requiring companies and employees to make joint contributions to each employee’s retirement savings account.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
