Pension funds hit N28tn as contributors exceed 11m

The Nigerian pension fund industry started 2026 on a high note, with total pension fund assets surging to a new milestone of N28.04 tn as of 31 January 2026, indicating a 22.64 per cent appreciation in pension assets from N22.86 tn in January 2025.

According to the latest unaudited report on the pension funds industry portfolio, the industry recorded a significant monthly growth of N580.22 bn, rising from a previous net asset value of N27.46 tn at the end of the prior period.

On an annual basis, the increase represents an addition of N5.17 tn within one year, highlighting continued expansion in the pension industry driven by contributions and investment performance.

This growth coincides with a steady expansion in the contributor base, with Registered Savings Account membership reaching 11,084,127 as of January 2026.

The investment landscape remains heavily weighted toward Federal Government of Nigeria securities, which account for N16.69 tn of the total portfolio. Within this asset class, Federal Government Bonds (Held to Maturity) are the single largest investment vehicle, totalling N13.16 tn.

Other FGN investments include Treasury Bills: N894.09 bn, Sukuk Bonds (HTM and AFS) totalling over N100.18 bn, and Green Bonds standing at N18.30 bn.

The industry also maintained a strong presence in the capital markets. Domestic Ordinary Shares accounted for N4.29 tn in investments, distributed across various fund types. Notably, Foreign Ordinary Shares are exclusively held within Closed Pension Fund Administrators, totalling N262.99 bn. Corporate Debt Securities also represent a significant portion of the assets, valued at N2.24 trillion. This includes N1.45 tn in Corporate Bonds and N67.42 bn specifically dedicated to Corporate Infrastructure Bonds.

To maintain liquidity, the industry holds N2.75 tn in Money Market Instruments, with the vast majority, N2.48 tn, placed in Fixed Deposits and Bank Acceptances.

Alternative asset classes continue to play a vital role in portfolio diversification; infrastructure fund investment stood at N292.32 bn, private equities at N241.85 bn, real estate at N170.04 bn, and Mutual Funds received N240.49 bn.

Among the various fund structures, RSA Fund II remains the largest, commanding a net asset value of N11.86 tn, followed by RSA Fund III at N7.19 tn. The retiree-focused Fund IV holds N2.27 tn, reflecting the industry’s commitment to providing stable returns for those in their post-employment years.

As of the end of January, the industry maintained a healthy cash position, with cash and other assets valued at N450.44 bn. (Punch)