The Non-Interest Fund VI under the multi-fund structure of the Contributory Pension Scheme recorded the highest percentage increase on a year-on-year basis at the end of August 2025, The PUNCH can report.
An analysis of the monthly report from the National Pension Commission indicated that Fund VI stood at N181.23bn at the end of August 2025, compared to N70.63bn in August 2024.
The PUNCH reports that the Ethical/Non-Interest Fund, also called Fund VI, was introduced by PenCom to meet the demand from Retirement Savings Account holders for the opportunity to invest their retirement savings in non-interest instruments.
The Non-Interest Fund is based on Islamic Shari’ah Principles. Fund VI is split into two funds for active RSA holders and retirees.
The Revised Regulation on Investment of Pension Fund Assets for Pension Fund Administrators issued by PenCom in September stated that “Fund VI assets shall not be invested in the production or trading of alcohol, pornography, weaponry, gambling/betting, speculation, or interest-earning ventures and other ventures of a similar nature contrary to Shari’ah principles and as may be determined by FRACE from time to time.
“ii. Fund VI shall be based on the principles of Wakala Bil-Istithmar (investment agency contract) with the PFA acting as the investment agent for active RSA contributors in Fund VI. iii. The principle of the Mudarabah contract (profit-sharing and loss-bearing partnership) shall be used for retirees in Fund IV who opted for Fund VI.”
PenCom guidelines allow Fund VI assets to be invested in instruments that are free from speculation and uncertainty that might lead to destruction or loss, otherwise known as ‘Gharar’ under Islamic commercial jurisprudence. Fund VI assets can be invested in government sukuk, corporate sukuk, Shari’ah-compliant money market instruments and others that fall within the scope.
Apart from the ethical fund, which recorded the highest percentage growth, other funds in the scheme also increased on a year-on-year basis. Fund I, the most conservative, increased in value by about 79 per cent from N217.03bn to N389.15bn, reflecting steady inflows and stable market performance. Fund II grew 25 per cent, moving from N8.73tn to N10.9tn, showing healthy investor confidence and positive yields. Fund III followed with a 23 per cent increase, to N6.88tn from N5.59tn, while Fund IV also rose 25 per cent to N1.89tn from N1.51tn. Fund V, which is for the micro pension (now rebranded Personal Pension Plan), experienced a remarkable jump of 63.5 per cent, climbing from N968.27m to N1.58bn, indicating strong risk-adjusted returns.
On the development, the Pension Fund Operators Association of Nigeria said, “Fund VI recorded the highest growth rate at about 157 per cent, soaring from N70.63bn to N181.23bn, highlighting its aggressive investment strategy and high return potential.
“This overall growth across all six pension funds reflects the combined effect of increased contributions by pension contributors and the effective management of these funds through diversified investment portfolios. The steady rise in fund values suggests growing trust in the pension system and a positive outlook for long-term retirement savings in Nigeria.”
Meanwhile, Nigeria’s pension fund assets surpassed the N25tn threshold as of August 2025 to stand at N25.89tn, from N21.13tn as of the same month of last year, indicating a 22.52 per cent increase year-on-year.
