…As Stanbic IBTC, Access, NPF outpace others in membership registration
Pension Fund Administrators (PFAs) have invested N5.51 trillion in Nigeria’s real sector to reap high yields and drive the nation’s growth.
The National Pension Commission (PenCom) said the pension industry committed the investment to boost the long-term financing for infrastructure, private equity and real estate to drive the real sector.
The commission said on Monday during a meeting with a delegation from the International Monetary Fund (IMF) that the real sector investments underline the strategic contribution of pension funds to sustainable national growth.
PFAs are investing in various sectors of the economy to leverage high yields or returns. An analysis of assets allocation by PFAs over a one-year period shows that private equities recorded the highest increase, growing by 106.35 percent, from N71.66 billion in 2023 to N147.86 billion in 2024.
Infrastructure funds were the second largest growth assets, recording a 49.49 percent increase, rising from N143.37 billion in 2023 to N214.33 billion at the end of 2024.
“This reflects an increasing emphasis on infrastructure investment, possibly driven by policy incentives encouraging pension fund participation in long-term development projects,” Pension Fund Operators Association of Nigeria (PenOp) said.
According to Omolola Oloworaran, director-general of PenCom, the pension industry continues to play a pivotal role in funding Nigeria’s economic development.
Oloworaran noted that the industry’s net asset value (NAV) jumped 22.65 percent to N22.51 trillion by the end of 2024, from N18.36 trillion as of December 31, 2023, driven by additional contributions and investment income.
Despite the progress, the commission raised concerns over the limited availability of investable instruments in Nigeria.
Oloworaran noted that only 86 financial instruments currently meet the regulatory requirements for pension fund investments, including standards for liquidity and free float.
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She emphasised that the shortfall has persisted despite extensive provisions in the investment regulation aimed at encouraging broader investment opportunities.
She reaffirmed the commission’s commitment to promoting investments in alternative asset classes while collaborating with key stakeholders, including the Securities and Exchange Commission (SEC), the Debt Management Office (DMO), and the Pension Fund Operators Association of Nigeria (PenOp).
Stanbic IBTC, Access, NPF outpace other PFAs in membership registration
Meanwhile, competition in the pension industry continued in the third quarter of 2024, with Stanbic IBTC Pension Managers Limited, Access Pensions Limited and NPF Pension Fund Managers Limited outpacing other PFAs in membership registration.
Membership of PFAs is often made up of individuals with Retirement Savings Accounts (RSAs) opened by them and maintained by PFAs for the purpose of saving towards retirement. Contributions are made by both the employers and employees.
At the end of February 2025, the country’s Contributory Pension Scheme (CPS) had registered 10,650,990 members, according to the latest data from PenCom.
Data show that 118,339 new RSAs were registered by 19 licensed PFAs in the quarter ended 30th September 2024.
Analysis of the RSA registrations revealed that Stanbic IBTC had the largest market share of 26.50 percent of new registrations with 31,359 newly-registered contributors, followed by Access Pensions Limited, which had 19.15 percent share with 22,659 new contributors.
NPF Pension Fund Managers Limited, ARM PensionManagers Ltd and FCMB Pensions Ltd followed with 9.07 percent, 5.71 percent and 5. 60 percent of new registrations respectively during the quarter.
Consequently, the top five PFAs collectively held 66.03 percent share, while the bottom five PFAs recorded an aggregate of 3.98 percent of the 118,339 new RSAs registered during the review period.
A further analysis of the new registrations by age and gender indicated that out of the 118,339 registrations, 83.72 percent were active contributors below the age of 40 years.
Out of this number, 14, 200 or 12 percent were between the ages of 40-49 years.
Analysts say the numbers point to the increasing sustainability of the CPS, as the younger generation are actively being enlisted into the scheme, according to Omolola Oloworaran, PenCom’s DG.
On the gender distribution, 72,906 or about 61.61 percent of those that registered during the quarter were males while female counterparts recorded 45,433 or 38.39 percent, thus sustaining male dominance over the female gender in terms of registration into the scheme.
Meanwhile, in the area of Micro Pension Plan (MPP), a total of 20,466 people were registered during the period under review by 17 PFAs, bringing the total number registered MPPs from inception to 164,031 as at 30 September, 2024.
Further analysis of the data shows that Access Pensions Limited accounted for 72.50 percent of the new MPP registration, with a total of 14,838 out of the 20,466 registered participants. Stanbic IBTC Pension Managers Limited followed with 3,157, accounting for 15.43 percent of the total registrations in the quarter.
Stephen Alangbo, managing director/CEO, Cornerstone Insurance Plc, who spoke on financial market deepening in a recent conference, urged youths to embrace insurance and pension as tools for financial independence.
He advised working-age individuals (21-60 years) to make financial security a priority, rather than succumbing to fleeting material desires.
“The lure of luxury—expensive phones and designer brands— can be overwhelming, but true wealth lies in securing your future. Insurance and pension planning should not be an afterthought but a deliberate choice to ensure long-term financial well-being,” he said.
Alangbo also lauded the government’s mandatory pension scheme, stating that greater compliance could generate massive infrastructure funding while preventing old-age poverty.
“A well-structured pension system does more than secure individuals—it also fuels national development,” he concluded.
