The total pension fund assets in Nigeria rose to N23.65 tn at the end of April 2025 from N23.33 tn a month earlier, according to the latest unaudited report released by the National Pension Commission.

The figure includes all approved existing schemes, closed pension fund administrators and retirement savings account funds, as well as unremitted contributions.

The portfolio data revealed a strong preference for government-backed instruments.

Federal Government securities, which comprise FGN bonds, treasury bills, Sukuk, agency bonds, and green bonds, maintain their position as the dominant asset class in the pension industry.

Their dominance has been maintained amid calls by PenCom to pension fund administrators to diversify their investment portfolios by increasing allocations to alternative assets in a bid to enhance returns and ensure long-term sustainability.

Speaking at a sensitisation workshop on investment in alternative assets held in Lagos last Thursday for Chairpersons of the Board Investment Strategy and Risk Management Committees of PFAs, the Director-General of PenCom, Omolola Oloworaran, said the perception of safety in liquidity has limited the ability of PFAs to fully optimise the investment potential of pension funds, despite Nigeria’s favourable demography.

She said, “Alternative assets provide a complementary pillar to the core investment strategies of pension funds. Investments in infrastructure and private equity, in particular, help align pension fund portfolios with their investment horizon, provide opportunities for diversification, and enhance risk-adjusted returns.”

As of the end of April, Fund II, designed for active contributors below 49 years of age, remained the largest pool, followed by Fund III, targeted at contributors aged 50 and above.

Total RSA Registrations as of the reporting period stood at 10.72 million contributors, an improvement from 10.69 million in March.