Nigeria’s Pension Industry Shows Resilience with Steady Returns in April 2025
Nigeria’s pension sector demonstrated remarkable stability in April 2025, with Retirement Savings Accounts (RSA) across all categories delivering consistent returns despite ongoing market volatility and macroeconomic challenges.
Pension Fund Performance Overview
According to data from Nairalytics, the research division of Nairametrics, Pension Fund Administrators (PFAs) achieved an average return of 1.28% for the month. All four RSA fund types recorded positive growth:
- RSA Fund I (aggressive investors): 1.39% return
- RSA Fund II (default for contributors under 50): 1.34% return
- RSA Fund III (conservative option): 1.22% return
- RSA Fund IV (retirees): 1.18% return
Top Performing Pension Fund Administrators
Tangerine Apt Pensions emerged as the industry leader in April 2025, delivering an impressive 1.83% average return across its portfolios. The company particularly excelled in RSA Fund I with a remarkable 3.45% return.
The top three performers were:
- Tangerine Apt Pensions – 1.83% average return
- Crusader Sterling Pensions – 1.76% average return
- Pensions Alliance Limited – 1.44% average return
Detailed Fund Category Performance
RSA Fund I (High-Risk Investors)
Leading performers in this aggressive investment category:
- Tangerine Apt Pensions: 3.45%
- FCMB Pensions Limited: 1.67%
- Stanbic IBTC Pension Managers Limited: 1.61%
RSA Fund II (Under 50 Contributors)
Top performers in the default fund category:
- Crusader Sterling Pensions Limited: 1.91%
- Norrenberger Pensions: 1.88%
- Pensions Alliance Limited: 1.68%
RSA Fund III (Age 50-60 Contributors)
Leading administrators for mid-term investors:
- Crusader Sterling Pensions Limited: 1.86%
- Pensions Alliance Limited: 1.58%
- Leadway Pensure PFA Limited: 1.44%
RSA Fund IV (Retirees)
Top conservative fund performers:
- Crusader Sterling Pensions Limited: 1.65%
- OAK Pensions Limited: 1.31%
- Pensions Alliance Limited: 1.29%
Industry Growth and Asset Allocation
Nigeria’s pension assets reached N23.27 trillion in February 2025, marking a 1.77% increase from January. The asset allocation breakdown shows:
- Federal Government securities: 62.18% (N14.47 trillion)
- Corporate debt securities: 10.01%
- Money market instruments: 9.51%
- Domestic equities: 11.10% (N2.58 trillion)
RSA Registrations and Fund Distribution
As of February 2025, RSA registrations grew to 10.65 million, a 3.82% year-on-year increase. The fund distribution shows:
- RSA Fund II: N9.62 trillion (41.33% of total assets)
- RSA Fund III: N6.06 trillion
- RSA Fund IV: N1.71 trillion (2.25% growth)
This growth demonstrates the expanding participation in Nigeria’s contributory pension scheme and the sector’s resilience amid economic challenges.
Full credit to the original publisher: Nairametrics