Nigeria’s pension industry recorded a strong rebound in October 2025, with total pension assets under management (AUM) rising by N571.79 billion to N26.66 trillion, reflecting renewed strength in government securities and equities.

According to the National Pension Commission (Pencom)’s latest industry portfolio report for the period ended October 31, 2025, covering Retirement Savings Account funds, existing schemes and closed pension fund administrators, AUM climbed from N26.09 trillion in September to N26.66 trillion in October, underscoring improved market conditions and steady inflows into the contributory pension system.

Federal Government of Nigeria securities remained the dominant investment class, accounting for N15.96 trillion of total assets. Of this amount, Federal Government bonds held to maturity stood at N13.88 trillion, while bonds available for sale contributed N1.26 trillion.

Treasury bills added N686.25 billion, highlighting the continued preference of pension fund administrators for low-risk sovereign instruments amid lingering macroeconomic uncertainties.

Equities also played a significant role in October’s asset expansion. Total domestic ordinary shares held by pension funds rose to N3.84 trillion, reflecting improved sentiment on the Nigerian Exchange (NGX) during the month. Foreign ordinary shares, although limited to specific fund categories, stood at N259.59 billion, indicating cautious but sustained offshore exposure.

Corporate debt securities remained another key pillar, with total holdings valued at N2.16 trillion.

Corporate bonds held to maturity accounted for N1.36 trillion, while bonds available for sale stood at N764.39 billion. Infrastructure bonds issued by corporates contributed N36.61 billion, reinforcing the pension industry’s growing role in long-term private sector financing.

Money market instruments also recorded sizeable allocations, with pension funds holding N2.88 trillion in the segment. Fixed deposits and bank acceptances dominated this category at N2.48 trillion, while commercial papers accounted for N328.65 billion, reflecting short-term liquidity management strategies by fund managers.

Alternative assets continued their gradual expansion. Mutual funds stood at N221.88 billion, infrastructure funds at N262.57 billion, real estate investments at N145.56 billion and private equity at N233.10 billion. Real estate investment trusts were valued at N98.32 billion, signalling modest but steady diversification beyond traditional asset classes.

By fund category, RSA Fund IV remained the largest, with net assets of N11.25 trillion, followed by RSA Fund V at N6.85 trillion and RSA Fund III at N2.02 trillion. RSA Fund I and II closed October with N3.20 trillion and N2.69 trillion, respectively, while the Retiree Fund stood at N205.39 billion.

The report also showed that total RSA membership increased to 10.97 million contributors as of October 31, 2025, underscoring the continued expansion of Nigeria’s contributory pension scheme and its growing importance as a stabilising force in the domestic financial market.

With the October performance report, the pension assets show resilience despite volatility in the broader economy, with the industry expected to remain a major driver of long-term capital formation in Nigeria.

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