Nigeria’s pension assets rose sharply to N29.43 trillion as at February 2026, buoyed by strong equity market gains and sustained inflows from contributors, the National Pension Commission (PenCom) said.

The N1.39 trillion month-month increase from N28.04 trillion recorded in January represents the highest monthly growth since the introduction of the Contributory Pension Scheme. The previous highest monthly change was N1.18 trillion recorded in January 2024.

The commission attributed the growth to a combination of fresh contributions and valuation gains across key asset classes, particularly domestic equities, where the pension fund rose to N5.41 trillion, reflecting improved investor sentiment in the local stock market.

Foreign equity investments, however, remained subdued at N261.99 billion, underscoring caution, offshore positioning by pension fund administrators (PFAs) amid persistent global uncertainties.

Further breakdown of the portfolio showed that corporate debt securities increased to N2.25 trillion. At the same time, investments in state government bonds stood at N368.99 billion, highlighting continued preference for relatively stable fixed-income instruments by PFAs.

Money market instruments climbed to N2.74 trillion, driven largely by fixed deposits and bank acceptance valued at N2.50 trillion. There were also commercial paper investments of N209.23 billion.

Market observers said the surge reflects a convergence of improved market performance and steady contribution under the scheme.

The data also reaffirm the sector’s resilience despite macroeconomic pressures. On a year –on –year basis, pension assets grew by 22.64 per cent from N22.86 trillion recorded in January 2025, while January 2026 alone saw an addition of N589 billion.

However, investments in alternative asset classes remained relatively low, with infrastructure funds at N300.02 billion, private equity at N258.31 billion and real estate investments at N169.52 billion. Real estate investment trusts (REITs) accounted for N77.64 billion.

RSA Fund IV retained its position as the largest contributor to total assets, accounting for N12.67 trillion, while total retirement savings account (RSA) membership rose to over 11.13 million as of February, reflecting steady enrolment growth.

Industry stakeholders linked the upward trend to recent regulatory adjustments by PenCom, particularly the increase in allowable equity investment limits across RSA fund categories aimed at enhancing portfolio diversification and returns.

The adjustment, announced in February as part of the Revised Regulatory Framework on Investment of Pension Fund Assets, is expected to deepen participation in the capital market while improving long-term yields for contributors.

With assets hitting a new high, analysts said attention would shift to sustaining growth through improved diversification and increased allocation to alternative investments.