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By Henry Uche
Nigeria’s pension industry recorded one of its strongest years in 2025, with assets under management surging by about N4.5 trillion, driven largely by the onboarding of over 11 million workers into the Contributory Pension Scheme (CPS).
The influx of new contributors, combined with steady investment income, lifted total pension assets from N22.51 trillion in December 2024 to N27.45 trillion by December 2025, underscoring the growing role of pensions as a stabilising force in the nation’s financial system.
Data from the industry show that about 11.04 million workers were enrolled into the CPS after their employers opened Retirement Savings Accounts (RSAs) on their behalf, expanding the contributor base and deepening long-term savings in the economy. The impact was evident in the consistent month-on-month growth recorded throughout the year.
In January 2025, pension assets rose to N22.86 trillion, reflecting an increase of about N350 billion. February saw a further jump of over N400 billion to N23.26 trillion, while March added another N120 billion to close at N23.38 trillion. The upward trend continued in April as assets climbed to N23.65 trillion, before crossing the N24 trillion mark in May at N24.1 trillion.
By June, pension fund assets had expanded by more than N500 billion to N24.62 trillion, signalling stronger inflows and investment returns. July delivered an even sharper rise to N25.79 trillion, while August 2025 recorded N25.89 trillion. In September, assets gained about N110 billion to reach N26.08 trillion, then jumped again in October to N26.66 trillion. By November, the total stood at N27.05 trillion, before closing the year at N27.45 trillion in December—an increase of roughly N450 billion within a single month.
Industry analysts attribute this sustained growth to a combination of higher compliance by employers, improved awareness among workers, and prudent investment strategies by Pension Fund Administrators (PFAs). According to them, steady allocations to fixed income securities, equities and mutual funds helped shield pension assets from market volatility while delivering stable returns.
For December alone, money market instruments attracted N2.62 trillion of pension investments, while corporate debt securities received N2.2 trillion. Federal Government securities remained the dominant asset class, accounting for the largest share of pension investments at N16.33 trillion, reflecting PFAs’ continued preference for relatively low-risk instruments.
Despite the impressive growth, stakeholders warn that Nigeria’s pension potential remains largely untapped. An estimated 73.1 million workers across the public and private sectors are still outside the pension net, highlighting the scale of the challenge ahead. Analysts insist that stronger advocacy, stricter enforcement of the Pension Reform Act (PRA) 2014, and incentives for informal sector participation are critical to reducing the number of defaulters.
Pension enthusiasts also recall that the National Pension Commission (PenCom) has taken steps to broaden the industry’s investment scope. The commission adjusted its investment guidelines to allow PFAs invest more in infrastructure and private equity, a move expected to boost long-term returns while supporting economic development. In addition, the Micro Pension Plan has been rebranded as the Personal Pension Plan (PPP) to encourage wider adoption among self-employed individuals, artisans and entrepreneurs.
The Director-General of PenCom, Ms. Omolola Oloworaran, has repeatedly emphasised the dual objective of protecting contributors’ funds while ensuring that pension assets deliver real economic impact. “We are committed to ensuring that pension contributors get good returns on investment of their contributions while the pension assets can now give real returns in terms of economic impacts,” she said.
Analysts echo her stance, stressing the need to bring more employers into compliance. “There is need for increased advocacy to convince employers of labour on the need to onboard their employees, while we strive to intensify enforcement of the PRA 2014 to reduce the rate of defaulters, so that workers have rest of mind at retirement, with assurance that there is a fund somewhere to care for them in their post-work years,” they maintained.
Senior citizens and other industry stakeholders have largely applauded PenCom’s recent reforms but insist that accountability and transparency must remain non-negotiable. One retiree, Mr. Sam Uwandu, summed up the sentiment: “PenCom DG is doing well, but to whom much is given, much is expected too. She must continue to unveil ideas that would lessen our burden, but must prioritise accountability, transparency and probity.”
Insurance industry expands social impact
Beyond pensions, Nigeria’s insurance industry also recorded notable developments in education, technology and inclusion over the period. In Lagos, SanlamAllianz Nigeria reaffirmed its commitment to human capital development by supporting 240 students of Gbara Community Senior Secondary School, Eti-Osa, through its women-led corporate social responsibility initiative.
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Under the SanlamAllianz Women’s Network (SAWN), female employees of the insurer donated educational materials, care packs and books to strengthen the school’s library and learning environment. The Marketing and Corporate Communications Manager, Mr. Bankole Banjo, said the initiative aligned with the global call to action to celebrate the International Day of Education.
According to Banjo, the outreach went beyond material donations to inspire students to pursue academic excellence, resilience and self-confidence. The President of SAWN and Growth Manager, Alternate Distribution at SanlamAllianz Life Insurance, Ms. Ogechi Ekwosimba, described education as the most powerful tool for sustainable development. “Our network was established not only to empower the women within SanlamAllianz but to create a ripple effect of meaningful impact beyond our workplace. We believe that supporting education is the single most effective way to contribute to sustainable, long-term community development,” she said.
In a keynote address, Abimbola Lawson, Company Secretary and Head of Legal and Compliance at SanlamAllianz Life Insurance, reinforced the message. “Education gives you the power to make informed choices and build a future anchored on integrity and purpose. It is your pathway to opportunity and personal growth,” Lawson told the students.
The school’s principal, Mrs. Abosede Oyewole, expressed gratitude to the insurer, assuring that the donated items would be put to good use while praying for the company’s continued success.
Resilience in a tough market
Elsewhere, Heirs General Insurance emerged as one of the industry’s resilience stories in 2025, posting strong performance despite economic headwinds, regulatory pressures and intense competition. The Managing Director/Chief Executive Officer, Mr. Wole Fayemi, described the year as “very interesting,” noting that the company soared in a volatile, uncertain, complex and ambiguous environment.
“We consolidated strongly on our growth trajectory which traced back to the inception of the business about five years ago,” Fayemi said, adding that the company recorded improvements across revenue, profitability, asset growth, return on investment, return on equity, market share and brand equity.
According to him, collaboration with partners and the deployment of technology-driven insurance solutions were critical to navigating the tough operating environment. “We collaborated well with our partners, leveraging on technology-driven insurance solutions, to make the customer journey a smooth experience. Our various products and services were tailored to the needs of our large corporate, retail, MSMEs and public sector clients,” he explained.
Looking ahead, Fayemi expressed optimism about 2026, citing regulatory support from the National Insurance Commission (NAICOM). “The government, through NAICOM, has provided a robust platform for insurance businesses to flourish in line with global best practices. We are poised to align with the regulator in adequate capitalisation, protection of policyholders’ interests, digitisation for effective service delivery and compliance,” he said.
Technology, inclusion drive momentum
Innovation also took centre stage as AXA Mansard Insurance partnered with Curacel, an insurance technology provider, to launch a fast-track digital vehicle inspection tool. The solution allows customers to complete motor insurance inspections by submitting photographs of their vehicles via smartphones, reducing the need for physical assessments.
Chief Technology Officer of AXA Mansard, Ms. Chizuru Nwankwonta, said the tool reflects the insurer’s commitment to simplifying insurance processes.
“This digital inspection option reduces the need for physical assessments and offers customers more flexibility in how they complete key steps in their motor insurance journey,” she noted.
Similarly, Leadway Assurance teamed up with fintech giant Paga to deliver tailored insurance solutions to Doroki merchants, targeting small businesses at the grassroots. The initiative aims to protect merchants against everyday risks while strengthening financial inclusion.
“At Doroki, we see our merchants as partners in driving economic activity across Nigeria’s retail landscape,” said Doroki Merchants’ General Manager, Ms. Arike Okwunowo. Leadway’s Head of Digital Business, Ms. Diana Mulili, added that the collaboration embeds “practical, easy-to-understand insurance solutions into a platform merchants already trust.”
Together, these developments highlight a financial services sector that is not only growing in size but also expanding its social impact, resilience and technological depth, setting the stage for broader inclusion and long-term stability in Nigeria’s economy.
