Nigeria's Pension Funds Reach N31 Trillion, Boosting Investment

Nigeria's pension funds have hit N31 trillion, contributed by 11.27 million working Nigerians, surpassing the entire 2024 federal budget. This amount has nearly tripled since 2019, indicating a consistent investment environment.

The National Pension Commission (PenCom) has advocated for expanding pension capital's role in private equity, raising equity ceilings, and creating frameworks for co-investment in infrastructure. Current regulations allow pension funds to allocate up to 15% of their assets to private equity, yet the actual utilization reveals untapped potential.

By mid-2026, government securities' share of total pension assets is projected to decline from 70.8% in 2019 to the high-50% range, with capital reallocating to domestic equities and money market instruments. PenCom identified private equity as underutilized and introduced a co-investment framework to enhance the ecosystem.

Regulatory reforms in September 2025 and February 2026 further eased investment criteria. Nigerian pension funds allocate 1.7% of total assets to private equity, surpassing South Africa's 0.8% and Kenya's 0.7%.