Nigerian Pension Fund Administrators Increase Exposure in Stocks and FGN Securities, Driven by Attractive Yields

Nigerian Pension Fund Administrators (PFAs) are significantly increasing their exposure in stocks and Federal Government of Nigeria (FGN) securities, now accounting for 73.9% of the total pension fund value of N27.45 trillion. The PFAs' exposure to the stock market and FGN securities has seen substantial growth, with investments appreciating from N1.71 trillion in December 2024 to N3.96 trillion in December 2025.

This growth is attributed to the attractive returns in the market, with analysts pointing to the increase in fundamentally sound listed companies in 2025. The PFAs' cautious approach aims to protect contributors' savings and ensure a secure and reliable source of income during retirement.

The pension industry has witnessed significant growth following regulatory reforms, including mergers and acquisitions among Pension Fund Administrators. Analysts highlight the benefits of undervalued stocks and renewed investor confidence in the Nigerian stock market amid economic challenges.