Nigeria’s pension industry recorded continued expansion at the start of 2026, with total assets under management reaching ₦28.04 trillion by January, driven largely by strong investments in fixed-income securities.
This represents an increase from ₦27.46 trillion in December 2025 and a 22.64% year-on-year rise from ₦22.86 trillion in January 2025, according to the National Pension Commission (PenCom).
The growth trend reflects resilience in the pension sector despite broader macroeconomic challenges, with pension fund administrators maintaining conservative allocations focused on capital preservation.
A significant portion of the assets remains invested in low-risk government instruments, particularly federal government securities, which continue to form the backbone of pension portfolios.
Federal Government Securities Dominate Allocations
Federal Government of Nigeria (FGN) securities accounted for the largest share of pension assets, totaling ₦16.7 trillion, or roughly 60% of the overall portfolio.
Within this class, federal government bonds held to maturity were the most substantial allocation, with Treasury bills and other instruments such as Sukuk and green bonds also contributing.
Money market instruments also played a key role in asset allocation, rising to ₦2.75 trillion and representing nearly 10% of total funds.
This category includes fixed deposits and foreign money market investments, which saw modest month-on-month increases.
Corporate debt securities, including corporate bonds and infrastructure bonds, accounted for about 8% of total assets, while equity investments remained a smaller portion of the portfolio.
Domestic ordinary shares were valued higher than foreign equities, reflecting cautious but increasing exposure to the equity market.
Diversification and Alternative AssetsIn addition to traditional fixed-income and equity holdings, pension funds continued to diversify into alternative assets. Infrastructure funds, private equity, and real estate made up parts of the overall investment mix, supporting long-term return objectives and portfolio balance.
Cash and other holdings declined significantly, indicating a shift toward higher-yielding instruments.
RSA Growth and Fund Category PerformanceThe report also showed that Retirement Savings Account (RSA) registrations rose to about 11.08 million contributors, underscoring expanding participation in the formal pension system.
Among the RSA categories, Fund II — tailored to mid-risk contributors — remained the largest, accounting for more than 40% of total assets.Analysts say the sector’s continued growth highlights the importance of a conservative investment approach anchored in government securities, which has helped protect contributors’ savings and sustain asset growth amid market fluctuations.
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