Pension: RSA Membership Hits 11.32m As Assets Grow 11.83 Percent Despite June Market Dip

Nigeria’s pension industry recorded 11.32 million Retirement Savings Account holders in June 2026, up from 11.04 million at the end of 2025, as net assets grew 11.83 per cent year-to-date to N30.70 trillion despite a monthly decline in June.

Data from the pension industry showed that total pension assets fell to N30.70 trillion in June 2026 from N31.32 trillion in May, representing a monthly decline of 1.99 per cent. The drop marked the first notable contraction in 2026.

The moderation in June was largely driven by a sharp correction in the domestic equities market following an exceptional rally that lifted the Nigerian Exchange (NGX) All-Share Index by over 60 per cent year-to-date before June.

Widespread profit-taking erased a significant portion of pension funds’ mark-to-market gains on equity holdings during the month.

Despite the short-term setback, industry performance remained significantly stronger than the N27.45 trillion recorded at the close of 2025, highlighting the resilience of long-term retirement savings amid heightened market volatility.

Federal Government of Nigeria (FGN) securities continued to dominate pension fund portfolios, accounting for approximately 56.7 per cent of total assets. Total exposure to FGN securities increased to N17.40 trillion in June 2026 from N16.33 trillion in December 2025. The share, however, moderated from 59.5 per cent at the end of 2025 as managers diversified.

Treasury bills recorded one of the strongest increases within the sovereign portfolio, rising to N1.13 trillion from N761.09 billion in December 2025. Fund managers increased allocations to shorter-duration instruments to benefit from higher yields while maintaining liquidity amid the CBN’s restrictive 26.50 per cent monetary policy stance.

One of the most significant shifts in H1 2026 occurred in domestic equities. Pension funds increased holdings in domestic quoted shares to N5.91 trillion in June 2026 from N3.96 trillion in December 2025 per cent, representing an increase of almost 50 per cent within six months.

The expansion was largely driven by remarkable appreciation across banking, industrial and consumer goods stocks during the first half of 2026 rather than aggressive portfolio reallocation. Even after the June correction, equity holdings remained substantially above December levels.

Foreign equity investments also edged higher to N281.81 billion from N263.94 billion, reflecting continued diversification into offshore assets.

Alternative asset classes recorded notable growth. Infrastructure funds increased to N329.43 billion from N282.14 billion, private equity rose to N263.24 billion from N238.53 billion, and mutual fund investments expanded to N288.49 billion from N231.19 billion.

Money market investments grew to N2.93 trillion from N2.62 trillion, while corporate debt securities remained relatively stable at N2.21 trillion.

Conversely, real estate investments declined slightly to N162.79 billion from N170.76 billion, reflecting continued caution towards direct property exposure amid elevated financing costs.

Analysts expected Nigeria’s pension assets to resume their upward trajectory in H2 2026, supported by continued RSA contributions, stable fixed-income returns, and improving macroeconomic fundamentals.

Cowry Assets Management Limited said, “while periodic corrections in the equities market may create short-term fluctuations, sustained economic reforms, moderating inflation, stable foreign exchange conditions, and elevated interest rates are expected to continue supporting industry growth.

“The substantial appreciation in domestic equities shows managers benefited from the strong rally before the June correction, while increased allocations to money market instruments and T-bills indicate a preference for liquidity and lower-duration assets.”