The Pension Fund Operators Association of Nigeria (PenOp) says pension fund investment in domestic equities rose to N3.96 trillion as of December 2025.
PenOp, in a statement on Tuesday, said this reflected sustained growth and increasing confidence in the capital market.
According to the association, equity investments increased from N915.31 billion in December 2021 and N908.02 billion in December 2022 to N1.57 trillion in December 2023.
PenOp noted that the figure rose further to N2.24 trillion in December 2024 before climbing significantly to N3.96 trillion in 2025.
The association noted that the consistent growth provided strong momentum for the equities market and underscored the role of pension funds in deepening market liquidity.
PenOp said that, with expanded equity allocation limits, pension funds are expected to further increase their market participation.
It noted that higher allocations would enhance long-term capital formation and support the overall development of Nigeria’s capital market.
Following the release of the Revised Regulation on Investment of Pension Fund Assets in September 2025, implementation challenges emerged.
This was particularly regarding the new limits for ordinary shares, federal government bonds, and alternative assets.
The report indicates that a shortage of qualifying alternative investment instruments constrained Pension Fund Administrators (PFAs) from fully deploying available funds.
This results in underutilised allocations and excess liquidity in the system.
To address the situation, the National Pension Commission (PenCom) reviewed Section 9 of the regulation, increasing equity investment limits across key Retirement Savings Account (RSA) funds.
Under the revised framework, RSA Fund I increased from 30 per cent to 35 per cent, RSA Fund II from 25 per cent to 33 per cent; and RSA Fund III from 10 per cent to 15 per cent.
RSA Fund VI (Active) rose from 25 per cent to 33 per cent.
(NAN)