Nigeria’s pension fund assets continued their steady growth in 2025, rising by more than N4.71tn as of the end of the third quarter. This represents a 22.03 per cent year-on-year increase and highlights the sustained confidence in the Contributory Pension Scheme, according to the latest Monthly Industry Report released by the National Pension Commission (PenCom).
The figures showed that total pension assets increased from N21.38tn in September 2024 to N26.09tn in September 2025. The steady rise pushed the funds past the N25tn mark in July 2025, when assets closed at N25.79tn. In August, the upward movement continued as the assets grew by N97.88bn to N25.89tn, before crossing the N26tn threshold in September.
PenCom’s report also revealed that the Pension Fund Administrators continued to allocate a major share of their funds to Federal Government of Nigeria securities. These instruments—comprising FGN bonds, Sukuk, treasury bills, and agency securities—remained the largest asset class, accounting for about 60 per cent of total pension investments. Between September 2024 and September 2025, PFAs increased their exposure to government instruments by nearly N3tn, a development that reflects the industry’s preference for safety and predictability amid Nigeria’s challenging macroeconomic climate.
The equities market also enjoyed stronger pension fund participation within the period. PenCom’s data showed that Domestic Ordinary Shares rose sharply by about N1.6tn year-on-year. This growth was supported by improved market valuations, increased liquidity, and stronger investor confidence across the Nigerian Exchange. Several PFAs also raised their stakes in corporate debt instruments as activities in the bond market improved, backed by better credit conditions and the return of highly rated issuers.
On the customer side, the pension industry continued to expand as Retirement Savings Account membership increased to about 10.9 million. The rise in subscriber numbers was largely driven by stronger enforcement of compliance, increased onboarding of private-sector workers, and growing adoption of the rebranded Personal Pension Plan designed for informal workers.
In recent years, PenCom has intensified its efforts to deepen participation in the Contributory Pension Scheme, especially within the informal sector, which covers millions of Nigerians who operate outside formal employment structures. The sector includes artisans, traders, commercial transporters, gig workers, freelancers, and several other categories of self-employed individuals.
Speaking at the Annual Conference of the Pension Correspondents Association of Nigeria, the Director-General of PenCom, Mrs Omolola Oloworaran, stressed the importance of expanding pension coverage. Represented by the Head of Corporate Communications, Mr Ibrahim Buwai, she stated that Nigeria’s informal workforce is estimated at between 70 and 80 million people, yet most of them do not have structured retirement savings.
Oloworaran described the situation as a major gap in the country’s social protection framework. She lamented that although informal workers contribute significantly to economic growth, many still lack access to formal pension arrangements. According to her, the revamped micro-pension framework, now known as the Personal Pension Plan, is central to closing this gap and helping millions secure financial stability in retirement.
The PenCom DG emphasised that digitisation remains a priority for the commission as it works to simplify registration and build trust among contributors. She noted that with the ongoing technology reforms, contributors now receive instant confirmation of their payments and can view their account statements in real time. Pension Fund Administrators and accredited agents are also adopting mobile-friendly onboarding processes to reduce barriers and encourage wider participation.
Under the PPP structure, contributions will be invested through a dedicated framework that offers both conservative and growth investment options, allowing contributors to choose based on their comfort level and long-term goals. PenCom believes that the initiative will help mobilise long-term domestic capital, deepen financial inclusion, and support sustainable pension coverage for millions who were previously excluded.
With pension assets now above N26tn and participation levels rising, analysts say Nigeria’s pension industry is strengthening its role as a major driver of long-term investment funds for the economy. However, they also note that expanding coverage in the informal sector remains crucial to building a more inclusive and sustainable pension system.
