Nigeria’s pension industry has increased its exposure to long-term asset classes with a total commitment of N5.51 trillion allocated to infrastructure private equity real estate and subnational projects.
The National Pension Commission disclosed the figure during a meeting with the International Monetary Fund as part of Nigeria’s 2025 Article IV Consultations.
Discussions focused on pension fund performance, investment strategy and regulatory direction.
PenCom reported that the industry’s total assets under management rose by 22.65 percent to N22.51 trillion at the end of December 2024, up from N18.36 trillion recorded a year earlier.
The growth was attributed to steady contribution inflows and improved investment returns.
Despite the increase in assets, the Commission highlighted a major constraint facing the industry. Only 86 instruments currently meet the regulatory standards required for pension fund investment under the existing guidelines.
These standards include liquidity threshold, creditworthiness and sufficient free float.
In response, PenCom announced plans to expand the range of eligible instruments in collaboration with capital market stakeholders.
The Commission will engage with the Securities and Exchange Commission, the Debt Management Office and the Pension Fund Operators Association to unlock new investment outlets that meet the quality and transparency requirements.
Beyond traditional equities and fixed income assets, PenCom intends to deepen exposure to alternative instruments that align with long-term pension liabilities.
This includes structured infrastructure vehicles private capital and other strategic sectors that drive sustainable growth.
The IMF team commended the pension regulator for its asset expansion strategy and its efforts to strengthen risk-based supervision.
The Fund also noted PenCom’s growing contribution to capital market stability and the wider Nigerian economy.
The Commission reaffirmed its commitment to portfolio diversification, improved asset quality and stronger oversight as part of ongoing efforts to enhance the resilience and sustainability of the Contributory Pension Scheme.
With over N22 trillion in net assets and growing participation, the pension industry remains a critical institutional investor in Nigeria’s economic development agenda.
