Pension investment in FGN debt securities rises 16.9% to N16.9trn

By Peter Egwuatu

Pension assets invested in the Federal Government of Nigeria, FGN debt   securities rose 16.9% year-on-year, YoY to N16.925 trillion in February 2026 from   N14.468 trillion in the corresponding period 2025, according to data from the National Pension Commission, PenCom.

The total pension Net Assets Value, NAV increased by 28.7%, YoY   to N29.426 trillion in February 2026 from N23.266 trillion in the corresponding period 2025 on the back of rising yield on investments in FGN securities.

Nggossips’s analysis reveals that FGN Bonds accounted   for   57.5 per cent of total pension assets, or N16.92 trillion at the end of February 2026.  

According to PenCom, the considerable proportion of government securities in the overall Asset Under Management AuM portfolio can primarily be attributed to PenCom regulatory limits on investments.

To further illustrate the renewed interest in government assets, pension investment   in treasury bills increased by 41.2 % YoY to N987.025 billion from N698.851 billion in January 2025.

However, the Sukuk Bonds, which comprises Hold Till Maturity, HTM, and Available for Sale, AFS, declined marginally YoY to N100.23 billion from N100.478 billion in February 2025.

Commenting on the report, analysts at InvestData Consulting Limited stated: “The high interest rate environment and the government’s increased borrowing need to plug the 2025 budget deficit also drove the YoY growth in investments in fixed-income securities”.

Commenting as well, David Adonri, analyst and Executive Vice Chairman at Highcap Securities Limited, stated: “The rise in demand for government securities is driven by their reputation as safe-haven assets, high liquidity, attractive yields compared to other low-risk options, and increased participation from both institutional and retail.   As the size of pension funds grows, obviously more of their investments will flow to FGNs. This trend is expected to continue as the investment guidelines from PENCOM mandate PFAs to channel the lion share of their funds to FGNs.”

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