The National Pension Commission has revealed that Nigeria’s pension industry has invested a total of ₦5.51 tn in asset classes targeted at supporting long-term financing for the country’s real sector growth.
This was disclosed during a high-level meeting between PenCom officials and a visiting International Monetary Fund delegation, which held discussions as part of the IMF’s 2025 Article IV Consultations on April 7, 2025.
Representing the Director-General of PenCom, Ms. Omolola Oloworaran, the Head of the Surveillance Department, Abdulrahaman Muhammad Saleem, told the IMF team that the pension industry continues to play a significant role in Nigeria’s economic development by channelling long-term funds into infrastructure, private equity, real estate, and subnational infrastructure initiatives.
Saleem said that the sector’s Net Asset Value rose by 22.65 per cent, from N18.36 tn in December 2023 to N22.51 tn in December 2024. He attributed this growth to both consistent contributions and strong investment income.
Despite this progress, the PenCom boss highlighted a major challenge facing the industry, which is a limited supply of suitable investable instruments in Nigeria’s capital market. According to her, only 86 instruments currently meet the stringent regulatory requirements set for pension fund investments. These requirements include minimum quality standards, liquidity, and free float conditions.
“While the Investment Regulation has provisions to encourage a broader investment landscape, we still face a scarcity of qualifying instruments,” she noted.
In response to this, PenCom pledged to continue working closely with key capital market stakeholders to widen the scope of eligible instruments. The Commission also reaffirmed its plan to increase exposure to alternative asset classes and deepen investment diversification to improve real returns for pension contributors.
The meeting also featured a comprehensive presentation by PenCom, outlining strategic updates on the pension industry’s investment approaches, asset quality management, and regulatory developments.
The Commission stressed its commitment to improving the range of financial instruments available for pension fund managers by collaborating with bodies such as the Securities and Exchange Commission, the Debt Management Office, and the Pension Fund Operators Association of Nigeria.
The IMF delegation, led by Mr. Jose De Luna, a senior financial sector expert, expressed satisfaction with the pace and direction of reforms in the Nigerian pension sector. They commended PenCom’s proactive regulation, strategic investments, and the sector’s robust growth trajectory.
In conclusion, the IMF praised PenCom’s efforts as instrumental in safeguarding contributors’ funds while simultaneously fuelling real sector development. The delegation noted that Nigeria’s pension system is increasingly becoming a cornerstone for sustainable economic growth.
