Nigeria’s pension industry maintained its steady performance in June 2025, delivering steady returns across all Retirement Savings Account (RSA) categories.
Despite tightening financial conditions and persistent macroeconomic uncertainties, all participating Pension Fund Administrators (PFAs) posted gains across their portfolios.
Performance data compiled by Nairametrics recorded an average monthly growth of 2.53%, contributing to continued investor confidence in the pension system.
RSA Funds Performance overview
June 2025 saw a strong showing by RSA Fund I, the high-risk, high-return category, which delivered an average return of 3.73% — outperforming all other RSA funds. RSA Fund II, the default choice for active contributors below 50 years, returned 2.95% on average.
RSA Fund III, designed for contributors nearing retirement (ages 50 and above), posted a moderate 2.03% gain, while RSA Fund IV, the most conservative fund category for retirees, returned 1.46%, reflecting the sector’s cautious approach to fixed-income investments.
Top Performing PFAs in June 2025
Based on the average percentage change across all RSA fund categories, the following Pension Fund Administrators emerged as the best performers in June 2025:
- Pensions Alliance Limited dominated the chart with an average monthly return of 3.52%, and a standout performance of 5.01% in RSA Fund I, and 4.74% in RSA II.
- Crusader Sterling Pensions Limited had an average return of 3.25% with a strong and consistent performance across all funds, notably 4.52% in RSA Fund I and 3.64% in RSA Fund II.
- Fidelity Pension Managers Limited, with an average return of 3.20%, posted a remarkable 6.06% gain in RSA Fund I — the highest return among all PFAs in any fund category.
Other PFAs with solid performances include:
- Trustfund Pensions Plc: 3.19% average return, with strong gains of 5.78% and 1.82% in RSA Fund I and RSA Fund IV, respectively.
- AccessARM: 2.63% average return, notable for 3.43% gains in RSA III.
- Premium Pension Limited: 2.53% average return, notable for 3.43 and 3.49% in RSA Fund I and II, respectively.
- FCMB Pensions Limited: 2.41% average return, consistently strong across RSA Funds I–III.
RSA Fund I Performance
RSA Fund I, designed for aggressive investors, led the charge with an average return of 3.73%. This fund’s performance was driven by strategic allocations to variable income instruments.
Top 3 Performers:
- Fidelity Pension Managers – 6.06%
- Trustfund Pensions Plc – 5.78%
- Pensions Alliance Limited – 5.01%
All 14 participating Pension Fund Administrators (PFAs) recorded positive returns, with OAK Pensions Limited posting the lowest return at 2.23%.
RSA Fund II Performance
RSA Fund II, tailored for contributors under 50 with a medium-risk appetite, posted an average return of 2.95% in June 2025, reflecting steady performance across the category.
Top 3 Performers:
- Pensions Alliance Limited – 4.74%
- Crusader Sterling Pensions – 3.64%
- Premium Pension Limited – 3.49%
All 14 participating PFAs recorded positive returns, with NLPC Pension Fund Administrators Limited posting the lowest at 1.90%.
RSA Fund III Performance
RSA Fund III, designed for contributors aged 50 to 60, with a 2.03% average return in June 2025, RSA Fund III remained resilient amidst a volatile fixed-income market, securing its position as the third-best performing fund among the four RSA categories.
Top 3 Performers:
- Crusader Sterling Pensions – 2.89%
- Pensions Alliance Limited – 2.71%
- FCMB Pensions Limited – 2.34%
RSA Fund IV Performance
As the most conservative fund, RSA Fund IV posted a modest 1.46% return in June 2025, making it the lowest-performing category among the four RSA funds.
Top 3 Performers:
- Crusader Sterling Pensions – 1.93%
- Trustfund Pensions Plc – 1.82%
- AccessARM – 1.71%
Backstory: Pension Assets and Portfolio Allocation
According to the latest data from the National Pension Commission (PenCom), Nigeria’s total pension fund assets rose to N23.65 trillion as of April 2025 — a 1.40% increase from the previous month. This growth reflects steady contributions and market returns, despite inflationary pressures and foreign exchange fluctuations.
A breakdown of the portfolio shows that Federal Government of Nigeria (FGN) securities remain the dominant asset class, accounting for 61.94% of total assets, amounting to N14.65 trillion.
Corporate debt securities and money market instruments represent 9.79% and 9.21%, respectively.
Meanwhile, investments in domestic equities dropped to N2.57 trillion, or 10.88% of total assets, while mutual funds contributed 0.76%, totaling N180.15 billion.
RSA Registrations and Fund Distribution
As of April 2025, total RSA registrations reached 10.72 million, reflecting a year-on-year growth of 3.91%.
RSA Fund II, the default fund for active contributors, maintained its position as the largest by Net Asset Value (NAV), holding N9.83 trillion, which accounts for 41.54% of total pension assets.
RSA Fund III, designed for contributors aged 50 and above, expanded to N6.20 trillion, while RSA Fund IV, catering exclusively to retirees, recorded a marginal 0.02% month-on-month growth, reaching N1.77 trillion.
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