Nigeria’s pension fund assets under the Contributory Pension Scheme (CPS) have reached an all-time high of N24.1 trillion as of May 31, 2025. This marks a significant growth of N3.9 trillion within one year, reflecting a 19.23 percent increase from N20.2 trillion recorded in May 2024. The growth trend has been consistent despite Nigeria’s economic challenges, as shown in the National Pension Commission’s (PenCom) unaudited report on the pension fund industry portfolio for the period ending May 31, 2025.
According to the report, the pension fund’s net asset value stood at N23.65 trillion in April 2025 before rising to N24.1 trillion by the end of May 2025. The steady expansion of pension assets is attributed to increased compliance with pension regulations by employers and rising enrollment of Nigerian workers into the CPS. The number of registered Retirement Savings Accounts (RSAs) grew to 10.76 million in May 2025, up from 10.35 million in April 2025.
PenCom’s Pension Industry Performance Dashboard for the first quarter of 2025 also provides further insights into the sector’s growth. The report disclosed that total pension contributions since the inception of the CPS stood at N12.24 trillion as of March 2025. In the first quarter of the year alone, contributions amounted to N389.17 billion.
A breakdown of contributions revealed that public sector employees contributed N6.40 trillion cumulatively, while the private sector’s contributions totaled N5.84 trillion. The data highlights the increasing participation of private sector workers in the CPS, reflecting a growing awareness and commitment to retirement savings across different sectors of the economy.
In terms of asset allocation, the pension fund continues to be heavily invested in federal government securities, which accounted for N14.48 trillion, representing 62.09 percent of total assets under management (AUM) as of the first quarter of 2025. This is in line with the commission’s conservative investment strategy aimed at ensuring the safety of pension assets while guaranteeing stable returns.
Corporate debt instruments attracted N2.35 trillion, representing 10.07 percent of AUM, while investments in money market instruments stood at N2.08 trillion, representing 8.91 percent. Equity investments amounted to N2.57 trillion, accounting for 11.02 percent of the total assets, indicating a cautious but steady exposure to the stock market.
The rising pension fund is seen as a positive signal for Nigeria’s long-term savings culture and capital market development. Pension fund administrators (PFAs) play a critical role in channeling these funds into various sectors of the economy, including government infrastructure projects, corporate financing, and the stock market, thereby contributing to economic growth.
Despite these achievements, some challenges remain in the pension industry. Issues of delayed remittances by some employers, low compliance by small and medium-sized enterprises, and inadequate awareness among informal sector workers still affect the overall performance of the CPS. However, the consistent growth in asset value and membership indicates progress in the commission’s efforts to deepen pension coverage.
Meanwhile, PenCom has reiterated its commitment to strengthening the pension system through regular oversight, policy reviews, and public sensitization campaigns. The commission aims to increase compliance levels, especially within the private sector, and expand coverage to informal sector workers through the Micro Pension Plan.
The pension industry’s robust performance also comes amidst ongoing conversations about pensioners’ welfare. Recently, the Pension Transitional Arrangement Directorate (PTAD) paid N8.6 billion in arrears for the N32,000 pension increment, addressing some of the concerns of retirees under the Defined Benefits Scheme. Similarly, some states like Ondo are making efforts to improve their pension compliance ratings, further reinforcing the importance of retirement security for Nigerian workers.
In the broader picture, the expansion of pension funds offers a vital pool of long-term capital for national development. With over N24 trillion in assets, Nigeria’s pension fund remains one of the largest institutional investors in the country, with potential to drive investments in infrastructure, housing, and critical sectors that can create jobs and stimulate the economy.
