Total pension fund investment in Federal Government securities rose by 18.1% to ₦15.8 trillion as of September 2025, according to the latest data released by the National Pension Commission (PenCom). The figure marks a significant increase from ₦13.4 trillion recorded in the same period last year, highlighting the continued dominance of government instruments in Nigeria’s pension investment portfolio.
PenCom’s report, as cited by BusinessDay, revealed that the bulk of these investments were in Federal Government Bonds, Treasury Bills, and Sukuk, which remain the preferred assets for pension fund administrators (PFAs) due to their relative safety and stable returns. The category now accounts for over 60% of total pension assets, underscoring the sector’s reliance on sovereign debt as a secure investment option.
Analysts quoted by The Guardian noted that the increase reflects both rising yields on government securities and a cautious approach by PFAs amid volatility in the equities and private sector debt markets. They added that the upward trend may persist as the government ramps up borrowing to finance its budget deficit.
PenCom also stated that total pension assets under management (AUM) climbed to ₦17.9 trillion in the review period, driven largely by growth in government-backed investments.
