Nigeria’s pension assets rose to N29.43 trillion in February, representing a monthonmonth increase of N1.39 trillion, according to data released by the National Pension Commission (PenCom).
The latest figure marks the strongest monthly expansion recorded since the introduction of the Contributory Pension Scheme (CPS) more than two decades ago, surpassing the previous high of N1.18 trillion posted in January 2024.
The surge was driven by fresh contributions and valuation gains, particularly within the equities segment – an indication of increasing risk appetite and portfolio diversification by Pension Fund Administrators (PFAs).
However, while N29.43 trillion in pension assets is a milestone, the 0.25% informal sector coverage means 153 million Nigerian workers are still invisible to the CPS, The HR Anchor analysis of PenCom February 2026 data shows.
Equities lead the rally, but caution remains
PenCom data showed that investment in domestic equities rose to N5.41 trillion, with pension funds now accounting for an estimated 3–4% of total market capitalisation on the Nigerian Exchange (NGX). However, foreign equity exposure remained relatively low at N261.99 billion, reflecting a cautious stance by fund managers amid global economic uncertainties.
A further breakdown revealed increased allocations to nonsovereign debt instruments, with corporate debt securities rising to N2.25 trillion, while investments in state government bonds stood at N368.99 billion – highlighting a continued balancing of risk and return in portfolio strategy.
Despite the equity push, government securities still dominate the asset base. N16.93 trillion (over half of total assets) remains invested in Federal Government instruments – predominantly FGN bonds (N13.17 trillion) and treasury bills (N987 billion). Money market instruments climbed to N2.74 trillion, while fixed deposits and bank acceptances accounted for N2.50 trillion.
Alternative asset classes remained modest: infrastructure funds (N300.02 billion), private equity (N258.31 billion), real estate (N169.52 billion), and REITs (N77.64 billion).
RSA membership grows, but informal sector gap persists
Total Retirement Savings Account (RSA) membership rose to over 11.13 million as of February, signalling sustained growth in pension enrolment and broader workforce inclusion in structured retirement savings. RSA Fund IV retained its position as the largest contributor to overall asset growth, with total assets of N12.67 trillion, reflecting its concentration of active contributors.
However, for HR professionals and employers, the headline numbers mask a critical challenge: over 90% of Nigeria’s workforce operates in the informal economy, yet pension penetration among this demographic stands at just 0.25% (less than 28,000 active contributors out of an estimated 153 million informal workers). PenCom has set a target of reaching 10% coverage by 2026 using digital platforms and the newly rebranded Personal Pension Plan (formerly the Micro Pension Scheme). The commission recently accredited its first Pension Agent (Awabah) to drive this inclusion.
HR warning: RSA data recapture still lagging
In what looks like another red flag for HR departments analysis of the date shows that only about 15.8% of legacy RSA holders have completed the mandatory data recapture exercise. This could delay benefit payments to retiring employees or their families. HR leaders are urged to partner with their PFAs to run internal data recapture campaigns and clean up employee records – especially for longserving staff who opened RSAs before biometric registration became standard.
Recapitalisation: A new pressure point for employers
PenCom has extended the deadline for PFAs to meet new minimum capital requirements (N20 billion for PFAs; N25 billion for Pension Fund Custodians) to June 2027. Industry estimates suggest PFAs need roughly N276.8 billion in fresh capital to comply. For HR professionals who select and monitor PFAs for their organisations, this raises urgent questions.
Compliance reminder: Pension clearance certificates
PenCom’s joint directive with NAICOM now bars noncompliant employers from operating insurance businesses. Many HR departments may not realise that failing to remit pension contributions within the statutory seven working days after salary payment can trigger operational restrictions. With assets at an alltime high, PenCom is likely to intensify enforcement.
From the workforce angle: What the equity shift means for employees
While the growth in pension assets is positive, PenCom’sdecision to raise equity investment limits (e.g., RSA Fund II from 25% to 33%) could unlock up to N1.6 trillion for the stock market. HR professionals should consider whether their employees understand the associated riskreturn tradeoff. Employee financial wellness programmes may need to be updated to explain fund choices and market volatility.
