Nigeria’s pension industry expanded further in the third quarter of 2025, with total assets under management rising to N26.09 trillion, even as market concentration among Pension Fund Administrators (PFAs) intensified and 11 states remained outside the Contributory Pension Scheme (CPS).
According to the Quarter Report published on the website of the National Pension Commission and a copy of which was obtained by The HR Anchor, pension fund assets grew by 5.93 per cent during the quarter, driven largely by equity price appreciation and bond revaluations.
Sovereign Securities Dominate Portfolio
Despite the growth, the asset allocation profile remains heavily conservative. Federal Government securities accounted for 60.35 per cent of total pension investments, underscoring the industry’s continued preference for sovereign instruments.
Market analysts note that while such positioning prioritises capital preservation and regulatory stability, the concentration in government debt instruments may limit long-term inflation-adjusted returns, particularly in a volatile macroeconomic environment.
With pension assets now exceeding N26 trillion, the industry has become one of the largest institutional investor blocs in the domestic capital market, raising expectations for gradual diversification into infrastructure, corporate bonds and alternative asset classes.
Two PFAs Control 44% of New Accounts
The report also revealed increasing market concentration among operators. Two PFAs — AccessARM and Stanbic IBTC — accounted for 44.39 per cent of all new Retirement Savings Account (RSA) registrations in Q3.
In the Personal Pension Plan (PPP) segment, which targets informal sector participants, AccessARM alone controls 50 per cent of registered contributors.
The figures suggest that a handful of administrators continue to dominate new business acquisition, benefiting from brand visibility, distribution reach and digital onboarding capabilities.
Industry observers say while scale can enhance efficiency, excessive concentration may reduce competitive pressure in areas such as service quality, innovation and customer engagement.
Subnational Gaps Persist
Beyond asset growth and market structure, the report highlighted uneven implementation of pension reforms across the federation.
Only 17 states have fully established Pension Bureaux under the CPS framework. Six states remain at the legislative stage, while 11 states are yet to implement the scheme at all.
The slow pace of adoption raises concerns about disparities in retirement protection for public servants, depending on geography. Analysts warn that the fragmentation complicates compliance for organisations operating across multiple states and leaves many workers exposed to funding uncertainties.
The Commission has repeatedly urged state governments to align with the national pension architecture to ensure predictable and sustainable retirement benefits.
Taken together, the Q3 figures present a picture of an industry that has achieved scale and asset growth, but continues to grapple with concentration risks and uneven subnational implementation.
