Pension assets gained 24.64 per cent or about N6.08 trillion in one year up till June.

The retirement savings, however, shrank in June after pension assets fell by N624 billion to N30.7 trillion.

The latest pension Industry Performance Report released by the National Pension Commission (PenCom) showed that total pension assets fell to N30.7 trillion in June from N31.32 trillion in May, representing a two per cent month-on-month decline.

The June decline reflected losses in domestic equities and lower valuations across several fixed-income asset classes, underscoring the impact of the recent correction in the Nigerian capital market on pension portfolios.

Domestic equities, which accounted for 19.24 per cent of total pension assets and ranked as the second-largest asset class after Federal Government securities, declined by 8.76 per cent month-on-month to N5.91 trillion.

Despite the setback, the exchange class remained one of the strongest performers in recent years, posting an impressive 91.74 per cent year-on-year growth.

Federal Government securities retained their position as the largest asset class, accounting for 56.69 per cent of total pension assets.

Investments in the category slipped marginally by 0.43 per cent to N17.4 trillion in June from N17.48 trillion in May but remained 14.61 per cent higher than the corresponding period of last year.

Treasury bills rose marginally by 0.1 per cent month-on-month to N1.13 trillion. They recorded an 81.33 per cent year-on-year increase, reflecting sustained investor interest in short-term government securities amid attractive yields.

Similarly, investments in state government securities declined by 2.28 per cent to N353.3 billion, although they remained 46.04 per cent above the level recorded a year earlier.

PenCom’s report showed that while major asset classes posted declines during the month, investments in private equity, corporate infrastructure bonds, open- and closed-end funds, as well as foreign money market instruments, recorded positive performance.

The report also indicated that pension assets remained heavily concentrated in Federal Government securities and Fund II, although both segments recorded declines during the review period.