The National Pension Commission (PenCom) has formally adjusted the investment boundaries for Nigeria’s N21 trillion pension industry, a move analysts say will channel much-needed liquidity into the Nigerian Exchange (NGX) and generate more money for Pension Fund Administrators (PFAs).
“ When the PFAs allocate more of their asset under management growth to equities, that will drive transaction values and prices up. When prices rise, investors benefit,” Abdulrauf Bello, portfolio manager, Cowrywise, said.
In a recent release by PenCom to the September 2025 Revised Regulation on Investment of Pension Fund Assets, the regulator has increased the ceiling for Variable Income Instruments”, specifically ordinary shares, across the multi-fund structure. This policy shift appears to be a direct response to the persistent inflationary environment, which has long eroded the real returns of the traditional, fixed-income-heavy portfolios favoured by Nigerian PFAs.
