The Nigerian pension industry has committed a staggering ₦5.51 trillion to key asset classes aimed at boosting long-term financing for the country’s real sector growth. These investments span a diverse range of sectors including infrastructure, private equity, real estate, and subnational infrastructure projects, all of which are instrumental in driving economic development.
This revelation was made by the Director General of the National Pension Commission (PenCom), Ms. Omolola Oloworaran, during a meeting with a delegation from the International Monetary Fund (IMF) on April 7, 2025. The meeting, part of the IMF’s 2025 Article IV Consultations, was led by Mr. Jose De Luna, Senior Financial Sector Expert. The discussions focused on the growth of Nigeria’s pension sector and its contribution to the broader financial system.
Represented by Abdulrahaman Muhammad Saleem, Head of PenCom’s Surveillance Department, Ms. Oloworaran highlighted the pivotal role that pension fund investments play in financing Nigeria’s real sector. She explained that these investments are crucial to supporting economic growth, demonstrating the pension industry’s significant contribution to national development.
PenCom’s recent report revealed that the industry’s Net Asset Value (NAV) surged by 22.65%, growing from ₦18.36 trillion at the end of December 2023 to ₦22.51 trillion by the close of December 2024. This growth was attributed to increased contributions and solid returns on investments.
However, the Director General expressed concern about the limited availability of investable instruments that meet the necessary criteria for pension funds. Currently, only 86 instruments meet the minimum requirements for quality, liquidity, and free float needed for pension investments, despite regulatory efforts to encourage a wider range of eligible investment options.
To address this gap, PenCom is actively collaborating with capital market operators to expand the pool of investable financial instruments. This initiative is aimed at diversifying pension fund portfolios and generating better long-term returns. Additionally, PenCom is encouraging more investments in alternative asset classes to bolster the sustainability and growth of the Contributory Pension Scheme (CPS).
PenCom’s presentation to the IMF delegation also focused on its efforts to enhance investment strategies, address asset quality concerns, and overcome regulatory challenges. The Commission emphasized its ongoing collaboration with key regulatory bodies, including the Securities and Exchange Commission (SEC), the Debt Management Office (DMO), and the Pension Fund Operators Association of Nigeria (PenOp), to create a more diversified and robust investment landscape.
The IMF delegation expressed satisfaction with PenCom’s progress in diversifying pension fund investments and commended the Commission’s effective regulation and oversight of the industry. They acknowledged the remarkable growth achieved in the Nigerian pension sector, praising PenCom for its leadership in driving long-term sustainability and contributing to the country’s economic development.
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