The 2026 Nigerian Pension Industry Report (the Report) provides a comprehensive analysis of the evolution, current dynamics and future prospects of Nigeria’s pension industry (the Industry). The Industry delivered one of its strongest performances since the introduction of the Contributory Pension Scheme, supported by improving macroeconomic conditions, stronger capital market performance and continued regulatory oversight.
In 2025, total pension assets increased by 22% to ₦27.45 trillion, from ₦22.51 trillion in the prior year, driven by sustained contribution inflows and stronger investment returns. Growth continued into 2026, with pension assets reaching ₦31.48 trillion by June 2026. We estimate that Industry assets would exceed ₦35 trillion by the end of 2026, supported by continued contributions, favourable investment performance and increasing portfolio diversification.
The Industry’s investment landscape also underwent a notable shift in 2025. While Federal Government of Nigeria (FGN) securities remained the dominant asset class at approximately 59% of pension assets, equity investments increased by over 150% year-on-year to approximately ₦6.5 trillion, following the revised investment limits and strong equity market performance. We expect allocations to equities and alternative assets to continue increasing as fixed income yields normalise. Investment performance also improved significantly, enabling the Industry to generate positive real returns after several years of inflation-adjusted underperformance. This improvement strengthened the Industry’s ability to preserve contributors’ purchasing power and support sustainable long-term retirement outcomes.
The competitive landscape remains concentrated, with the five largest Pension Fund Administrators (PFAs) accounting for over 63% of Industry assets. PenCom’s revised minimum capital requirements are expected to accelerate consolidation through mergers, acquisitions and strategic partnerships, particularly among smaller operators.
Looking ahead, Agusto & Co. expects the Nigerian Pension Industry to sustain its strong growth trajectory over the medium term. While renewed inflationary pressures, exchange rate volatility, geopolitical tensions and weaker-than-expected economic growth present potential headwinds, the Industry’s outlook remains favourable. Continued regulatory reforms, portfolio diversification and the significant untapped potential of the informal sector are expected to support sustained asset growth and broader pension coverage.
We believe the information, analyses and opinions contained in this Industry report will be of utmost importance to various stakeholders, including:
This report provides a detailed analysis of the Nigerian Pension Industry (“the Industry”). Key benefits of the report include:
