Pension Net Asset Value Rises 11.83% to N30.70tn in June

• A m/m Decline by 1.99% in June
• Raises Equities holdings to N5.91tn in June
• As Market Correction Reshapes Portfolio Allocation

BY BONNY AMADI

The Nigerian Pension net asset value increased by 11.83% from N27.45 trillion recorded in December 2025, to N30.7 trillion as at the end of June 2026.

However, the pension industry witnessed its first month/month (m/m) notable contraction in 2026 as total pension assets declined to N30.70 trillion in June 2026 from N31.32 trillion in May, representing a monthly decline of 1.99%.

Pension funds increased their holdings in domestic quoted shares to N5.91 trillion in June 2026 from N3.96 trillion in December 2025, representing an increase of almost 50% within six months.

Despite this short-term moderation, the Pension industry’s long-term growth trajectory remains intact, with net asset value increasing by 11.83% from N27.45 trillion recorded in December 2025, reflecting continued pension contributions, investment income, and expanding Retirement Savings Account membership, which rose to 11.32 million contributors from 11.04 million at the end of 2025.

The moderation in total assets during June was largely driven by the sharp correction witnessed in the domestic equities market during the month.

Following an exceptional rally that lifted the Nigerian Exchange (NGX) All-Share Index by over 60% year-to-date before June, widespread profit-taking erased a significant portion of pension funds’ mark-to-market gains on equity holdings.

Although the monthly decline reduced the industry’s asset base, pension fund performance remained significantly stronger than at the close of 2025, highlighting the resilience of long-term retirement savings despite heightened market volatility.

Federal Government of Nigeria (FGN) securities continued to dominate pension fund portfolios, reaffirming the industry’s conservative investment philosophy.

Total exposure to FGN securities increased to N17.40 trillion in June 2026 from N16.33 trillion in December 2025, accounting for approximately 56.7% of total pension assets compared with 59.5% at the end of 2025.

The increase reflects continued preference for sovereign instruments amid elevated interest rates and the Central Bank of Nigeria’s restrictive monetary policy stance, which kept fixed-income yields attractive throughout the first half of the year.

Treasury bills recorded one of the strongest increases within the sovereign portfolio, rising to N1.13 trillion from N761.09 billion in December 2025 as fund managers increased allocations to shorter-duration instruments to benefit from higher yields while maintaining portfolio liquidity.

According to Cowry Assets report, one of the most significant shifts during the review period occurred within domestic equities.

Pension funds increased their holdings in domestic quoted shares to N5.91 trillion in June 2026 from N3.96 trillion in December 2025, representing an increase of almost 50% within six months.