FGN Securities Grow Pension Assets to N27.5trn
Nigeria’s pension fund assets have climbed to ₦27.5 trillion, driven largely by increased investments in Federal Government of Nigeria (FGN) securities, according to the latest figures released by the National Pension Commission (PenCom).
PenCom disclosed that total assets under management of the Contributory Pension Scheme rose from about ₦22.5 trillion in December 2024 to ₦27.45 trillion as of December 2025, representing a year-on-year increase of more than 22 per cent.
Data from the commission show that pension fund administrators (PFAs) significantly expanded their holdings in FGN instruments, which now account for nearly 60 per cent of total pension assets. The portfolio includes Federal Government bonds, Treasury bills and Sukuk, reflecting the industry’s preference for relatively secure and high-yield government debt instruments amid Nigeria’s elevated interest rate environment.
Analysts attribute the strong growth to improved yields in the fixed-income market, sustained contributions from workers, and increased government borrowing to finance fiscal deficits. Treasury bills holdings recorded moderate growth within the period, while investments in Sukuk bonds declined slightly year-on-year. In addition to fixed-income securities, pension funds also increased their exposure to equities. Industry figures indicate that equity investments have grown significantly in recent years, reaching close to ₦4 trillion by the end of 2025, as regulators adjusted allocation limits for certain Retirement Savings Account categories to enhance long-term returns.
The commission has continued to strengthen oversight of the industry through new disclosure and corporate governance requirements aimed at improving transparency and protecting contributors’ funds.
It has also intensified enforcement against employers who fail to remit pension contributions as required by law. With assets now standing at ₦27.5 trillion, the pension industry remains one of Nigeria’s largest pools of long-term domestic capital, playing a critical role in financing government debt and supporting activity in the capital market.
