• Weak policies threaten Nigeria’s N2.5trn blue economy –Experts
By Uche Usim
Nigeria’s pension fund industry sustained its bullish momentum in June 2025, with total assets under management (AUM) climbing to N24.63 trillion, a 2.17% increase from N24.11 trillion in May and an impressive 20.24% year-on-year growth.
The analysis, based on the latest data from the National Pension Commission (PenCom), highlights how strategic asset reallocation, improved market performance, and sustained investor confidence continue to shape the industry’s upward trajectory.
Domestic ordinary shares delivered one of the strongest monthly performances of the year, rising by N333.05 billion or 12.12% month-on-month to reach N3.08 trillion, contributing 12.5% of the total pension fund assets.
Analysts attributed the surge to the bullish momentum in the Nigerian Exchange (NGX), improved corporate earnings, and an increased risk appetite among Pension Fund Administrators (PFAs).
Foreign ordinary shares also inched higher by 0.95% to N292.78 billion, reflecting “cautious optimism” in global markets amid lingering macroeconomic uncertainties.
Federal Government of Nigeria (FGN) securities maintained their commanding position, accounting for over 61% of total pension fund assets. The category grew by N232.96 billion or 1.56% in June, reaching N15.19 trillion.
Within the segment, FGN Bonds (HTM) rose modestly by 0.91% to N12.79 trillion, representing a significant 51.9% of the total AUM. Treasury Bills climbed by 3.24% to N624.15 billion, while Green Bonds posted a remarkable 361.15% surge to N10.71 billion, up from N2.32 billion in May. Sukuk Bonds also gained 3.21% to N89.64 billion, though Agency Bonds declined by 5.50%.
“Despite the drop in Agency Bonds, FGN securities remain the most trusted and liquid investment channel for pension funds,” a market analyst noted, citing their safety and consistent returns.
Corporate debt securities faced a broad-based decline, dipping 1.26% to N2.26 trillion. All subcategories posted negative returns, with Corporate Bonds (AFS) falling the most by 1.86%, followed by Corporate Infrastructure Bonds (-1.48%) and Corporate Bonds (HTM) (-1.02%).
Even so, corporate debt still accounts for 9.19% of total pension fund assets, signifying moderate but cautious exposure to the private sector.
Money market investments also fell 3.16% to N2.24 trillion, as PFAs reallocated capital toward higher-yielding instruments in equities and government securities.
PenCom noted that the continued growth of pension assets reflects a well-calibrated approach to portfolio diversification.
“The industry’s resilience stems from its ability to adapt to economic headwinds while ensuring long-term value for contributors,” the commission stated.
With robust year-on-year growth and stronger positions in equities and government-backed securities, the pension fund industry continues to demonstrate its role as a stabilizing force in Nigeria’s investment ecosystem.
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