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Nigeria’s pension trade continued its regular march upward in October 2025, with whole pension belongings climbing to N26.66 trillion, representing a 2.19% month-on-month enhance from N26.09 trillion recorded in September, and a robust 21.63% surge year-on-year.
The pension trade demonstrated sustained resilience, supported by cautious rebalancing into safer, liquid belongings and sustained confidence in Federal Authorities securities, regardless of a difficult macroeconomic setting, marked by sticky inflation, FX volatility, and unsure capital market sentiment.
The information confirmed that RSA enrollments grew from 10.93 million in September to 10.97 million in October, a 0.39% enhance—reflecting ongoing onboarding of recent entrants into the formal workforce and micro-pension contributors.
FGN Securities stay the anchor, now 59.86% of whole Belongings
FGN devices stay the spine of Nigeria’s pension portfolio, increasing marginally by 1.35% MoM to N15.96 trillion. These securities now account for 59.86% of whole pension belongings. Key actions inside FGN Securities are:
- Treasury Payments, up 11.34%, resulting from engaging short-term yields, prompted stronger inflows.
- Fed Govt Bonds (HTM), up 8.14%, nonetheless the biggest part at N13.88 trillion, representing 52% of whole pension belongings alone.
- Sukuk Bonds, up 5.33%, due to the transfer to diversify portfolios with devices providing engaging returns and decrease threat.
- Inexperienced Bonds, up 1.68%, reflecting renewed curiosity in sustainability-linked devices.
- Authorities securities, up 1.28% reinforce the market-wide risk-off posture as fund managers search to safeguard worth amid unstable fairness and FX markets.
Cash Market Devices surge 18.85% as PFAs chase liquidity
Cash market allocation recorded one of many strongest actions in October, rising from N2.42 trillion to N2.88 trillion—an 18.85% MoM enhance. The class now accounts for 10.80% of whole pension belongings.
- Fastened deposits and financial institution acceptances drove the rally, surging 24.89% to N2.48 trillion, as PFAs sought larger short-term yields and liquidity buffers.
- Nonetheless, international cash market devices plunged 44.80%, resulting from FX repricing and valuation impacts tied to continued naira volatility.
- Whereas business papers rose by 5.61% to N328.65 billion.
Company Debt Devices slip 3.41%
Company bonds dipped from N2.24 trillion in September to N2.16 trillion in October, contributing 8.11% to the whole belongings. The decline was broad-based:
- Company Bonds (HTM): down 3.70%
- Company Bonds (AFS): down 2.67%
- Infrastructure Bonds: down 7.61%
This cooling in urge for food aligns with continued credit score threat considerations within the personal sector, elevated borrowing prices, and up to date downgrades affecting choose issuers.
Equities see combined actions
Home equities grew 5.01%, rising to N3.84 trillion, and accounting for 14.42% of the whole belongings. That is supported by bargain-hunting as buyers priced in potential year-end rallies.
International fairness publicity, however, fell 6.45%, echoing valuation pressures and conservative FX repositioning.
Whole allocation to equities (home + international) represents about 15.39% of whole pension belongings.
Various belongings
The options phase delivered combined outcomes:
Mutual funds superior 1.32% to N221.88 billion, buoyed by average progress of two.22% and 0.21% in open/close-ended funds and Actual Property Funding Trusts (REITs), respectively.
- Infrastructure Funds, likewise, elevated by 9.23% to N262.57 billion, signaling renewed PFA curiosity in real-sector diversification
- Non-public Equities declined by 10.53% to N233.10 billion, reflecting valuation changes and cautious commitments.
- Actual Property dropped sharply by 40.19% from N243.35 billion to N145.56 billion, probably resulting from portfolio restructuring or markdowns.
- Supra-national Bonds retreated by 10.44% to N19.70 billion.
Money & different belongings declined sharply by 16.79% from N518.95 billion to N431.84 billion in October, reallocating into higher-yielding money-market and authorities securities.
Breakdown by fund class
Throughout the Retirement Financial savings Account (RSA) construction, the distribution remained in line with historic traits, as Fund II stays the biggest and most actively managed phase of the trade:
- Fund II, the default fund for lively RSA contributors aged 49 and under, rose to N11.25 trillion, rising by 2.68%. This fund contributed 42.18% to the whole belongings, highlighting robust inflows and strong funding returns.
- Fund III (Pre-Retiree), the default Retirement Financial savings Account (RSA) fund for lively Nigerian contributors aged 50 and above, additionally elevated modesty by 1.89% to N6.85 trillion, accounting for 25.71% of the whole belongings.
- Fund I (Aggressive), recorded a big progress of 6.99%, to N424.11 billion.
- Fund IV (Retiree Fund), and Fund V (Micro-Pension) posted progress of three.65% and 4.42%, respectively, whereas Fund IV contributed 7.58% to the whole belongings.
- Fund VI (Shariah), elevated by 7.16% to N205.39 billion.
- Fund VI (Retiree Shariah), N21.52 billion, +4.16%, 0.08%
- Present schemes and CPFAs contributed by 12% and 10.10% to the whole asset funds, respectively, reinforcing the expansion trajectory throughout legacy and institutional schemes.
What this means for you
October 2025 strengthened the pension trade’s regular resilience, even amid macroeconomic turbulence. The asset combine reveals a sector leaning closely into security, liquidity, and predictable returns—evident in robust flows into FGN securities and cash market devices.
At over N26.66 trillion, Nigeria’s pension trade stays a serious stabilizing drive within the monetary markets, with PFAs persevering with to navigate the tightrope between threat administration and return optimization.
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