Pension Assets Hit N28trn
Pension Assets Surge to N28trn as FGN Securities Investment Hits N16.7trn
Nigeria’s pension industry Net Asset Value (NAV) has recorded a significant 24.6% year-on-year increase, reaching N28.04 trillion in January 2026. This growth is primarily driven by rising yields on Federal Government of Nigeria (FGN) securities, according to the latest data from the National Pension Commission (PenCom).
FGN Securities Dominate Portfolio
The PenCom report reveals that total Assets under Management (AuM) rose from N22.51 trillion in January 2025 to the current N28.04 trillion. A major catalyst for this surge was the 16.7% growth in pension fund investments in FGN securities, which climbed to N16.695 trillion from N14.309 trillion in the previous year.
FGN Bonds remain the primary driver of asset concentration, accounting for 59.5% of the total pension portfolio. PenCom attributed this heavy concentration to regulatory limits designed to ensure fund safety and stability.
Growth in Treasury Bills, Slump in Sukuk
The data further highlights a shift in investment preferences. Pension holdings in Treasury Bills increased by 12.6% year-on-year, rising to N894.1 billion from N794.3 billion in January 2025.
Conversely, Sukuk Bonds—which include Hold Till Maturity (HTM) and Available for Sale (AfS) categories—saw a decline. The asset class dropped 9.2% to N85.02 billion, down from N93.7 billion in December 2024.
Analyst Insights
Experts attribute the trend to the prevailing economic climate and government fiscal policy. Analysts at InvestData Consulting Limited noted that the high-interest-rate environment of 2025, coupled with the government’s need to borrow to plug the 2025 budget deficit, significantly boosted fixed-income yields.
David Adonri, Executive Vice Chairman at Highcap Securities Limited, emphasized the “safe-haven” appeal of government assets.
“The rise in demand is driven by high liquidity and attractive yields compared to other low-risk options,” Adonri stated. “As pension funds grow, more investment will naturally flow to FGNs, especially since PenCom guidelines mandate PFAs to channel the lion’s share of funds into these instruments.”
