Nigeria’s pension regulator has allocated over N5.51 trillion towards strategic sectors of the economy as part of efforts to stimulate long-term growth beyond traditional financial markets.
According to the National Pension Commission (PenCom), the funds have been directed into a mix of infrastructure projects, real estate, private equity ventures, and regional development initiatives. These investments are seen as key to unlocking broader economic potential and generating sustainable returns for pension contributors.
This was revealed during a session with the International Monetary Fund (IMF) delegation in Abuja, as part of the Fund’s 2025 Article IV Consultations. The visiting team, led by Senior Financial Sector Expert Mr. Jose De Luna, held talks with senior officials of PenCom on current investment trends and regulatory approaches in the pension space.
Speaking on behalf of PenCom’s Director General, Ms. Omolola Oloworaran, Head of the Surveillance Department, Abdulrahaman Muhammad Saleem, explained that the pension industry continues to serve as a critical funding source for development-focused projects across the country.
PenCom noted that the industry’s total Net Asset Value (NAV) grew from N18.36 trillion at the end of 2023 to N22.51 trillion by December 2024 — an increase of over 22%. This growth was largely attributed to both consistent contributions and investment gains.
Despite these strides, PenCom flagged a persistent challenge: a shortage of suitable, high-quality investment options that meet regulatory benchmarks. Currently, only 86 instruments are considered eligible under the pension investment framework — a figure the commission says falls short given the scale of available capital.
To address this, PenCom plans to work more closely with key players in the capital market to expand the range of viable financial instruments. The move is intended to increase diversification across portfolios and ensure long-term value preservation for pension contributors.
The commission also reiterated its push to grow alternative investment channels, including non-traditional assets, as a way to further stabilise returns and hedge against market volatility.
PenCom outlined collaborative efforts already underway with organisations such as the Securities and Exchange Commission (SEC), the Debt Management Office (DMO), and the Pension Fund Operators Association of Nigeria (PenOp) to deepen investment opportunities.
During the engagement, the IMF team acknowledged the regulator’s proactive approach and noted the significant progress made in reforming the pension landscape. The delegation praised PenCom’s risk-based oversight model and expressed confidence in its role in supporting economic resilience through responsible fund management.
