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Nigeria’s pension industry recorded a sharp expansion over the past year, with total assets under management rising by 22 percent to N26.7 trillion at the end of October.
The expansion was driven by strong market performance, increased contribution inflows, and broader diversification across asset classes, according to analysts at the Pension Fund Operators Association of Nigeria (PenOp).
Investment in domestic ordinary shares increased by 82.0 percent, from N2.11 trillion to N3.84 trillion, indicating sustained confidence in equity markets and long-term growth assets.
Holdings in FGN Securities recorded the highest growth among traditional assets, expanding by 17.6 percent, rising from N13.57 trillion to N15.96 trillion, as pension funds increased exposure to government backed instruments.
Allocations to money market instruments grew by 30.9 percent, increasing from N2.20 trillion to N2.88 trillion, reflecting higher liquidity positioning amid attractive short-term yields, the analysts said.
Mutual Fund investments more than doubled, recording a 107.6 percent growth, from N106.85 billion to N221.86 billion, highlighting rising pension participation in long-term national development projects.
Investment in infrastructure funds rose by 48.1 percent, increasing from N177.24 billion to N262.57 billion, underscoring growing diversification through pooled investment vehicles.
Similarly, private equity investments expanded by 89.5 percent, from N123.04 billion to N233.10 billion, reflecting increased appetite for alternative assets and long-term value creation.
Overall, the period showed robust pension fund growth across both traditional and alternative asset classes, reinforcing the sector’s expanding role in capital market development and economic growth, PenOp said.
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