Pension Fund Equity Investments Boost Nigerian Capital Market

The Nigerian capital market received a major boost following the Pension Commission's (PenCom) decision to raise equity exposure limits for Retirement Savings Accounts (RSA) funds II, III, and VI. This adjustment is expected to channel nearly ₦1 trillion in fresh liquidity into the Nigerian Exchange (NGX).

As a result, the NGX share index surged by 4.37% to 190,281.57 points, achieving a year-to-date return of 22.28%. This marked the fourth consecutive day of gains above 4%, reminiscent of November 2020.

The market capitalization rose to ₦122.14 trillion, with 54 stocks advancing against 28 declines. Key sectors such as industrial goods, oil and gas, and banking saw significant gains.

Analysts noted that this rally reflects a structural shift driven by long-term investor confidence and anticipatory portfolio rebalancing. However, there are cautions regarding the rapid inflow into a narrow set of large-cap equities, which could elevate concentration risks.