FGN securities, equities account for 74.85% of N28trn pension assets

Federal Government securities and domestic stocks accounted for 74.85% of Nigeria’s total pension fund assets valued at N28.04 trillion as of January 31, 2026.

The figures were disclosed in the latest unaudited pension industry portfolio report released by the National Pension Commission (PenCom).

The data highlights the strong concentration of pension investments in government-backed instruments and local equities as fund managers prioritize safety and regulatory compliance.

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The report also showed that the pension industry recorded a monthly growth of N580.22 billion in January 2026, increasing from a net asset value of N27.46 trillion at the end of December 2025.

On a year-on-year basis, total pension assets rose significantly by N5.17 trillion.

What the data is saying

Nigeria’s pension fund assets climbed to N28.04 trillion by the end of January 2026, with Federal Government securities and domestic ordinary shares jointly accounting for N20.59 trillion of the total portfolio.

This underscores the dominance of these two asset classes in the industry’s investment structure.

• N16.7 trillion of the total assets were invested in Federal Government securities, including Federal Government bonds, treasury bills, and other government-backed instruments.
• Domestic ordinary shares contributed N4.29 trillion to the total portfolio, representing investments in equities across key sectors of the Nigerian economy.
• The dominance of these asset classes reflects regulatory investment limits guiding how pension fund administrators allocate contributors’ funds across approved asset classes.

Apart from Federal Government securities, other investment categories such as corporate bonds and money market instruments also contributed to the total asset pool of N28.04 trillion.

More insights

Apart from FGN Securities and local ordinary shares, there are other major non-government asset classes in the pension portfolio.

• Foreign ordinary shares accounted for N262.99 billion of the pension assets, largely from allocations under Fund I.
• Corporate debt securities totaled N2.23 trillion, driven mainly by corporate bonds held to maturity and those classified as available for sale, with Funds I and II holding the largest portions.
• Money market instruments contributed N2.75 trillion to the portfolio, including fixed deposits, bank acceptances, and treasury bills, particularly within Funds III and IV.

Nigeria’s pension system operates multiple funds, such as Fund I, Fund II, Fund III, and Fund IV, which are structured based on the age and risk appetite of contributors, with younger contributors generally placed in funds with higher growth potential and attendant risk outlook.

What you should know

Nigeria’s Revised Pension Investment Regulations are designed to protect retirement savings while enabling moderate investment returns through diversification across several asset classes.

• Pension fund managers are allowed to invest up to 100% of the funds under management in Federal Government securities due to their relatively low risk.
• State government bonds can account for up to 20% of total pension assets, while corporate bonds and other debt instruments can make up to 30%.
• Ordinary shares (equities) are limited to a maximum of 25% of pension assets, while investment funds such as ETFs, REITs, and mutual funds can account for between 5% and 20% depending on structure.
• Money market instruments can represent up to 35% of the pension portfolio and include treasury bills, commercial papers, and bank placements used for liquidity management.

Other allowable asset classes include private equity funds, which can account for between 10% and 15%, depending on the fund category, as well as infrastructure funds, typically capped between 5% and 10%, reflecting ongoing efforts to balance safety with long-term returns for contributors.