Nigeria’s Pension Assets Rise 0.38% to ₦25.9 Trillion in August 2025, PenCom Reports

Nigeria’s pension industry recorded steady growth in August 2025, as total pension fund assets under management (AUM) rose by 0.38% to ₦25,895,323.38 (₦25.90) trillion, up from ₦25.80 trillion in July, according to new data released by the National Pension Commission (PenCom).

The ₦97.88 billion increase, though modest, reflects the sector’s resilience in the face of mixed market conditions, volatile equities, and ongoing portfolio rebalancing by pension fund administrators.

Federal Government of Nigeria (FGN) securities once again dominated the asset mix, accounting for 61.11% of total pension assets. Holdings in this segment climbed 1.14% to ₦15.82 trillion, buoyed largely by gains in FGN bonds, treasury bills, and green bonds, which recorded a remarkable 17.89% surge — the strongest percentage increase in the period. In contrast, Sukuk bonds tumbled 61.51%, a dip attributed to maturities and reallocation strategies by fund managers.

Equities offered a mixed picture. Domestic stocks slumped 4.40% (₦165.99 billion) to ₦3.61 trillion, underlining prevailing bearish sentiment in Nigeria’s stock market. Conversely, foreign equities provided a silver lining, rising 2.27% as pension funds cautiously diversified into offshore markets.

The money market also played a stabilizing role, with investments in commercial papers and foreign money market instruments pushing overall holdings up 1.91% to ₦2.41 trillion. Mutual funds added further momentum, surging 10% to ₦226.49 billion, driven by a striking 35.60% leap in open/close-end funds.

From a year-on-year perspective, the growth story is more pronounced. Pension fund assets have expanded by 22.52%, translating to an additional ₦3.38 trillion between August 2024 and August 2025. Analysts attribute this long-term trajectory to consistent contributions from Retirement Savings Account (RSA) holders and the revaluation of investment portfolios.

RSA membership also recorded steady growth, rising 0.44% to 10.88 million in August from 10.83 million in July, underscoring the industry’s gradual but firm expansion.

The August 2025 numbers reaffirm the pension sector’s role as a pillar of Nigeria’s financial system, demonstrating its ability to weather short-term market volatility while maintaining long-term growth momentum. For retirees and contributors alike, the resilience of pension assets remains a critical assurance in uncertain economic times.

Nigeria’s pension fund assets grew to ₦25.90 trillion in August 2025, up 0.38% despite weak equities, with FGN securities and mutual funds driving gains, according to PenCom data.