Pension Assets Hit ₦23.65tn as FG Disburses ₦1.6tn to States for Infrastructure, Security

PenCom’s Director-General, Mrs. Omolola Oloworaran

Nigeria’s total pension fund assets rose to ₦23.65 trillion at the end of April 2025, up from ₦23.33 trillion recorded in March, according to the latest unaudited report released by the National Pension Commission (PenCom).

The report shows that the figure includes all approved existing pension schemes, closed pension fund administrators, retirement savings account funds, and unremitted contributions. However, a key highlight from the report is the strong concentration of investments in Federal Government-backed securities—comprising FGN bonds, treasury bills, Sukuk, agency bonds, and green bonds.

Despite this upward trajectory in asset value, concerns have resurfaced over the limited diversification of pension investments. Speaking at a sensitisation workshop held in Lagos for chairpersons of the Board Investment Strategy and Risk Management Committees of Pension Fund Administrators (PFAs), PenCom’s Director-General, Mrs. Omolola Oloworaran, called for a broader investment strategy.

She noted that the continued focus on liquidity and perceived safety has constrained the ability of PFAs to maximize long-term returns. “The perception of safety in liquidity has limited the potential of pension funds to contribute meaningfully to national development,” Oloworaran said. She urged PFAs to increase allocations to alternative assets such as infrastructure, private equity, and real estate, particularly given Nigeria’s young and growing population.

Meanwhile, in a separate development, records from the Office of the Accountant-General of the Federation (OAGF) have revealed that a total of ₦1.6 trillion was disbursed to state governments and the Federal Capital Territory between March 2024 and May 2025.

The disbursements, made under a special intervention programme funded through non-oil revenue savings, were aimed at supporting infrastructure and security projects across the country. According to documents submitted at the May 2025 meeting of the Federation Accounts Allocation Committee (FAAC), the intervention is part of a broader effort to address infrastructure deficits and bolster security operations at the subnational level.

The committee noted that a total of ₦1.659 trillion was shared among the three tiers of government in May, representing a slight decline from ₦1.681 trillion disbursed in April.

Analysts say the rise in pension fund assets alongside increased government spending on infrastructure presents an opportunity for synergy. With adequate regulation and incentives, PFAs could play a more active role in financing critical national development projects while achieving better long-term returns for contributors.

The current alignment of fiscal expansion and investment reform, stakeholders argue, could mark a turning point in the evolution of Nigeria’s pension industry—from risk-averse investing to one that fuels economic transformation.

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