Nigeria’s pension industry started 2026 on a steady trajectory, with total assets under management (AUM) rising to ₦28.04 trillion in January 2026, reflecting a 2.11% increase from ₦27.46 trillion in December 2025 and a 22.64% jump compared to ₦22.86 trillion in January 2025, according to data from the National Pension Commission (PenCom).
The growth trend, extending from 2025, underscores the sector’s resilience despite macroeconomic challenges. The industry added roughly ₦589 billion in one month, supported primarily by higher yields on government securities rather than broad-based equity gains.
Federal Government of Nigeria (FGN) instruments remain the backbone of pension portfolios, accounting for ₦16.70 trillion or 59.55% of total assets. The breakdown includes:
FGN Bonds (HTM): ₦13.16 trillion (46.95%)
Treasury Bills: ₦894.1 billion (3.19%)
Agency Bonds (NMRC & FMBN): ₦9.68 billion (0.03%)
Sukuk Bonds: ₦95.09 billion (0.34%)
Green Bonds: ₦18.30 billion (0.07%)
State Government Securities: ₦371.06 billion (1.32%)
Treasury bills recorded a notable 17.48% month-on-month increase, reflecting improved yields and stronger positioning in short-term instruments.
Money market instruments grew to ₦2.75 trillion, representing 9.82% of total assets, with fixed deposits and bank acceptances at ₦2.48 trillion (+9.63% MoM) and foreign money market instruments at ₦54.53 billion (+9.39% MoM). However, commercial papers declined 30.36% to ₦213.79 billion, signaling selective risk reduction by pension managers.
Corporate debt securities also saw marginal growth, standing at ₦2.24 trillion (7.98% of total assets), up 1.43% from the previous month.
Analysts note that the reliance on FGN instruments highlights the sector’s preference for secure, fixed-income investments in a high-interest-rate environment, positioning pension funds to benefit from consistent returns while managing exposure to market volatility.
