The Pension Fund Administrators (PFAs) in Nigeria have significantly increased their investment in the domestic stock market and Nigeria Treasury Bills (NTBs), recording a 48.04% Year-on-Year (YoY) growth to N3.35 trillion in May 2025, up from N2.26 trillion in May 2024, according to newly released data from the National Pension Commission (PenCom).
The data highlights the growing confidence in local investment vehicles, driven by attractive returns and improving market fundamentals. The surge contributed to a rise in total pension net asset value, which closed May 2025 at N24.11 trillion, reflecting a 19.2% YoY increase (or N3.88 trillion) from N20.23 trillion in May 2024.
A breakdown of the figures shows:
- PFAs’ stake in the domestic stock market rose by 45.1% to N2.75 trillion in May 2025, compared to N1.89 trillion a year earlier.
- Investment in Treasury Bills climbed by 63.35% YoY to N604.6 billion, up from N370.12 billion in May 2024.
The combined exposure to stocks and Treasury Bills now accounts for 13.9% of the total N24.11 trillion net asset value, underscoring their increasing role in portfolio diversification and capital market stability.
Analysts say the trend reflects growing domestic investment appetite among PFAs, as well as strategic shifts in fund allocation to maximize returns amid evolving economic conditions.
