Pension Commission Invests N5.51Trn To Boost Nigeria’s Real Sector

The National Pension Commission says over ₦5.51 trillion in pension funds has been invested in Nigeria’s real sector driving growth in infrastructure, real estate, and private equity.

The announcement was made during a strategic meeting with a delegation from the International Monetary Fund.

Representing the Director General, Omolola Oloworaran, PenCom’s Head of Surveillance, Abdulrahaman Saleem, highlighted the rising impact of pension fund investments on national development.

He revealed that the industry’s Net Asset Value rose from ₦18.36 trillion in December 2023 to ₦22.51 trillion by December 2024, a 22.65% growth, driven by consistent contributions and strong returns on investment.

Of the total assets, ₦5.51 trillion, representing roughly 24.5 per cent, has been invested directly into the real sector. These include infrastructure bonds, private equity, real estate, and subnational bonds—seen as catalysts for job creation and economic stimulation.

Despite the growth, PenCom raised a key concern about a limited number of investable financial instruments that meet regulatory standards. Only 86 instruments currently qualify, underscoring the need for innovation and expansion in Nigeria’s capital markets to unlock more opportunities for pension fund deployment.

The IMF delegation commended PenCom’s investment strategy and regulatory oversight, noting its critical role in stabilizing the economy and deepening the financial sector.

Editor: Anoyoyo Ogiagboviogie