The NGX Pension Broad Index, the Nigerian Exchange Limited’s benchmark for pension-compliant equities, outperformed the broader stock market in 2025, delivering a robust 59.72 per cent return and highlighting the growing influence of long-term institutional capital in Nigeria’s equities market.

Data from the Exchange showed that the Pension Broad Index closed 2025 at 2,917.84 points, up sharply from 1,826.89 points at the end of 2024. In comparison, the benchmark NGX All-Share Index (ASI) returned 51.19 per cent over the same period, meaning the pension index outperformed the broader market by more than 850 basis points.

Analysts attribute this performance to strong investor appetite for fundamentally sound, large-cap equities that meet the investment guidelines of the National Pension Commission (PenCom), as well as increased confidence driven by financial market and broader economic reforms.

Unlike the ASI, which tracks all listed equities, the NGX Pension Broad Index comprises only stocks that satisfy PenCom’s eligibility criteria for pension fund investment. As a result, it serves as a critical performance gauge for Pension Fund Administrators (PFAs) seeking to balance regulatory compliance with competitive returns for contributors.

The index features a diversified mix of high-quality companies across key sectors of the economy, including financial services, telecommunications, consumer goods, industrials, and energy. This broad sectoral spread helped cushion volatility while capturing upside from Nigeria’s most liquid and well-capitalised stocks during the year.

The index’s strong showing in 2025 reinforces the case that pension-compliant equities can deliver attractive, risk-adjusted returns over the long term, while also supporting domestic capital formation. With pension assets now exceeding N20 trillion, PFAs’ role as anchor investors in the equities market has continued to expand.

The Nigerian Exchange has reaffirmed its commitment to working closely with PenCom and the pension fund community to deepen market education, enhance data analytics, and develop pension-focused investment products. According to NGX, these efforts are designed to help PFAs and other institutional investors make informed asset allocation decisions in a rapidly evolving market environment.

As Nigeria’s pension industry continues its steady growth, the NGX Pension Broad Index is expected to remain a key reference point for measuring performance, strengthening confidence in pension investing, and deepening participation in the domestic equity market.

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