According to the National Pension Commission, the total assets under Nigeria’s Contributory Pension Scheme reached N18.36tn by the end of 2023, with a 22.43% increase during the year. Most of the assets, 64.9%, were invested in Federal Government securities, particularly FGN bonds, which constituted 96% of the total FGN securities. Domestic equities also saw significant growth, increasing by 70% year-on-year to N1.57tn, driven by the robust performance of the NGX. However, alternative investment classes such as real estate and private equity remained small portions of the overall portfolio. The pension industry’s growth trajectory is expected to contribute to Nigeria’s economic development in the mid to longer term. The devaluation of the naira impacted the value of pension funds, as it did the entire economy, leading to a decline in dollar value. The Commission recognizes the effects of inflation and devaluation on the currency’s purchasing power.
