The Nigerian Exchange Limited (NGX) Pension Broad Index delivered a stronger performance than the wider equities market in 2025, posting a return of 59.72 per cent and outperforming the NGX all-share index (ASI), which recorded a 51.19 per cent capital gain.

The impressive showing underscores the resilience and growing appeal of pension-compliant equities amid an active trading environment and rising investor confidence.

Data from the exchange showed that the Pension Broad Index closed in 2025 at 2,917.84 points, a significant increase from 1,826.89 points at the end of 2024.

The nearly 1,100-point uptick reflects sustained demand for quality stocks that meet the investment criteria of the National Pension Commission (PenCom) as pension fund managers continued to prioritise assets that combine regulatory compliance with attractive returns.

Unlike the broader market indices, the NGX Pension Broad Index is designed to track only equities that are eligible for pension fund investment under PenCom guidelines.

This makes it a critical benchmark for pension fund administrators (PFAs) seeking to balance strict regulatory requirements with the need to deliver competitive, long-term returns to contributors.

The index comprises a diversified mix of fundamentally strong companies across key sectors, including financial services, telecommunications, consumer goods, industrials and energy, offering balanced exposure and risk mitigation for pension portfolios.

In 2025, the index outperformed the NGX all-share index by more than 850 basis points, reinforcing the view that pension-compliant stocks can generate robust, risk-adjusted returns even in a volatile market environment.

Analysts noted that the performance highlights the increasing influence of pension assets in Nigeria’s capital market, particularly their role in driving liquidity, supporting capital formation and contributing to broader economic development.

The exchange has reiterated its commitment to deepening collaboration with PenCom and the PFA community, with a focus on market education, enhanced data analytics and the development of pension-focused investment products.

According to NGX, these efforts are aimed at equipping institutional investors with better tools to make informed asset allocation decisions.

As Nigeria’s pension industry continues to expand in size and sophistication, the NGX Pension Broad Index remains a vital performance gauge, supporting long-term retirement planning, promoting disciplined portfolio construction and encouraging deeper participation in the domestic equity market.