Pension News

Status of Contributory Pension Assets as at 31 August 2025

Nigeria’s Pension Fund Assets Rise by ₦3.38 Trillion in 8 Months — Sector Diversification Loading

As of 31 August 2025, total pension fund assets under management (AUM) stood at ₦25.90 trillion, marking a significant year-to-date (YTD) growth of ₦3.38 trillion or 15% from ₦22.51 trillion recorded as at 31 December 2024, according to the latest data from the National Pension Commission (PenCom).

Investment Diversification and Allocation Trends

FGN Securities remain the dominant investment class, accounting for 61.1% of total assets (down from 62.7% in December 2024), reflecting sustained government debt exposure but slight diversification into other asset classes.

Equities (domestic and foreign combined) grew notably to 15.1% from 11.1%, driven largely by gains in domestic shares amid improved market performance in 2025.

Alternative investments — including Private Equities, Infrastructure Funds, and Mutual Funds — expanded their share from 2.0% to 2.9%, signalling gradual but steady growth in long-term and growth-oriented assets.

Real Estate and State Government Securities both saw marginal declines, indicating limited new exposure to these asset classes during the period.

Key Insights

Robust Growth in Domestic Equities: The surge of over ₦1.36 trillion in domestic ordinary shares reflects pension funds’ increasing confidence in the Nigerian capital market, in line with the strong performance of the Nigerian Exchange (NGX) in 2025, which saw significant gains across major indices and improved investor sentiment.

Diversification Progress: The overall asset mix shows a slow but encouraging shift away from exclusive reliance on FGN securities toward equities and alternative assets.

Long-Term Sustainability: Increased exposure to infrastructure and private equity investments supports the goal of channeling pension assets into productive sectors of the economy.

The Top 7 places where pension funds were invested as at August 2025, with percentage invested, are;

  • Total FGN Securities N15.82 Trillion (61.11%)
  • Domestic Ordinary Shares N3.61 Trillion (13.93%)
  • Money Market Instruments N2.41 Trillion (9.29%)
  • Corporate Debt Securities N2.23 Trillion (8.63%)
  • Cash & Other Assets N290.82 Billion (1.12%)
  • Foreign Ordinary Shares N277.39 Billion (1.07%)
  • Private Equities N273.29 Billion (1.06%)

Breakdown of Pension Fund Investments as at Dec 2024 and August 2025

Table 1 shows assets class as at Dec 2024 and Aug 2025 with change in naira and percentage, with this table you can see the assets class that has grown fastest, which are Mutual Funds, Private Equities and Domestic Ordinary Shares.

Asset ClassDec-24Aug-25₦ Change % Change
FGN Securities14.11 Trillion15.82 Trillion1.7103 Trillion12.12%
Domestic Ordinary Shares2.24 Trillion3.61 Trillion1.3654 Trillion60.91%
Money Market Instruments2.22 Trillion2.41 Trillion0.1895 Trillion8.55%
Corporate Debt Securities2.25 Trillion2.23 Trillion-0.0116 Trillion-0.52%
Cash & Other Assets0.43 Trillion0.29 Trillion-0.1370 Trillion-32.03%
Foreign Ordinary Shares0.27 Trillion0.28 Trillion0.0094 Trillion3.51%
Private Equities0.15 Trillion0.27 Trillion0.1254 Trillion84.81%
Real Estate0.28 Trillion0.25 Trillion-0.0290 Trillion-10.23%
Infrastructure Funds0.21 Trillion0.24 Trillion0.0272 Trillion12.68%
State Govt. Securities0.25 Trillion0.24 Trillion-0.0134 Trillion-5.34%
Mutual Funds0.08 Trillion0.23 Trillion0.1457 Trillion180.37%
Supra-National Bonds0.02 Trillion0.02 Trillion0.0012 Trillion5.55%
Total22.51 Trillion25.90 Trillion3.3830 Trillion15.03%

Table 2 shows assets class as at Dec 2024 and Aug 2025 with individual percentage of each asset class as at each date, this lets you know investment in which asset class has increased or reduced in percentage to the total pension fund assets.

Asset ClassDec-24PercentageAug-25Percentage% In>/De<
FGN Securities14.11 Trillion62.70%15.82 Trillion61.11%-1.59%
Domestic Ordinary Shares2.24 Trillion9.96%3.61 Trillion13.93%3.97%
Money Market Instruments2.22 Trillion9.84%2.41 Trillion9.29%-0.55%
Corporate Debt Securities2.25 Trillion9.98%2.23 Trillion8.63%-1.35%
Cash & Other Assets0.43 Trillion1.90%0.29 Trillion1.12%-0.78%
Foreign Ordinary Shares0.27 Trillion1.19%0.28 Trillion1.07%-0.12%
Private Equities0.15 Trillion0.66%0.27 Trillion1.06%0.40%
Real Estate0.28 Trillion1.26%0.25 Trillion0.98%-0.28%
Infrastructure Funds0.21 Trillion0.95%0.24 Trillion0.93%-0.02%
State Govt. Securities0.25 Trillion1.11%0.24 Trillion0.92%-0.20%
Mutual Funds0.08 Trillion0.36%0.23 Trillion0.87%0.52%
Supra-National Bonds0.02 Trillion0.09%0.02 Trillion0.08%-0.01%
Total22.51 Trillion100.00%25.90 Trillion100.00% 

Conclusion

The pension industry’s ₦25.9 trillion AUM milestone as at August 2025 underscores the sector’s steady growth, driven by consistent contributions, investment returns, and expanding portfolio diversification. While FGN instruments remain the anchor, the gradual shift toward private equities, mutual funds, and infrastructure suggests a maturing investment landscape capable of boosting both retiree wealth and national economic growth.

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