By Juliet Ezeh
Federal Government securities continued to dominate Nigeria’s pension investment portfolio as total pension assets rose to N28.03tn in January 2026, according to the latest report released by the National Pension Commission.
Data from the commission showed that about 60 per cent of the industry’s total assets are invested in government-backed instruments, highlighting pension fund administrators’ continued preference for relatively safer investment options.
The report indicated that Federal Government securities accounted for N16.6tn of the total assets under management. Within this category, Federal Government bonds made up the largest portion at N15.6tn, while Treasury Bills stood at about N894bn.
Nigeria’s pension fund assets grew by N580bn in January alone, representing a 2.2 per cent increase from N27.45tn recorded in December 2025.
PenCom also reported a rise in participation in the Contributory Pension Scheme, with about 400,000 new workers joining the scheme during the month. This pushed the total number of Retirement Savings Account holders to 11.08 million across both the public and private sectors.
Apart from government securities, pension funds were also invested in other financial instruments, including N2.75tn in money market instruments and N2.23tn in corporate debt securities.
Analysts say the strong allocation to government securities reflects the cautious investment approach adopted by pension fund managers, who prioritise capital preservation and steady returns for contributors.
The growth in assets was attributed to a combination of fresh pension contributions, interest income from fixed-income investments, and gains recorded in equities and mutual fund investments.
Despite the positive growth, the National Pension Commission acknowledged that challenges remain within the industry.
Director-General of PenCom, Omolola Oloworaran, said inflation continues to affect the real value of pension payments, making it necessary for the commission to explore strategies that will protect the purchasing power of retirees.
She also noted that delays in the payment of accrued pension rights remain an issue for some retirees, adding that the commission is working with the Federal Government to implement measures that will ensure retirees receive their benefits without unnecessary delays.
The steady growth in assets, however, underscores the expanding role of Nigeria’s contributory pension system as a key pillar of the country’s financial sector.
Juliet Ezeh is the founder and chief reporter at Westbridge Reporters with over 7 years of experience in journalism. She covers crime, industry, policy, and social developments, delivering timely and accurate reporting.