Nigeria’s pension sector demonstrated sustained growth and resilience in April 2025, maintaining steady investment returns despite volatile markets and persistent macroeconomic uncertainty. Data compiled by Nairalytics, the research division of Nairametrics, shows that Pension Fund Administrators (PFAs) delivered an average return of 1.28% across all Retirement Savings Account (RSA) fund types for the month.

This consistent performance across the four RSA fund categories—RSA Fund I, II, III, and IV—highlights the industry’s stability even in a turbulent economic environment.

Tangerine Apt and Crusader Sterling Take the Lead

Tangerine Apt Pensions outperformed all competitors in April, recording a 1.83% overall portfolio return. Its exceptional 3.45% gain in RSA Fund I placed it firmly at the top of the industry, reflecting effective portfolio management and strategic asset allocations.

Crusader Sterling Pensions followed closely behind, registering a strong 1.76% return, driven by notable gains in RSA Fund II and solid showings across the more conservative funds. Pensions Alliance Limited secured the third-best overall performance with a respectable 1.44% return.

Meanwhile, Pension Fund Administrators Limited and OAK Pensions Limited posted moderate gains of 1.15% and 1.11%, respectively.

It’s worth noting that ARM Pension Managers Limited, Guaranty Trust Pension Managers, and Veritas Glanvills Pensions were not included in the analysis due to incomplete or invalid data submissions.

RSA Fund I: Aggressive Strategy Pays Off

RSA Fund I, designed for contributors willing to take higher risks in exchange for higher potential returns, saw the highest average return among the four fund categories, coming in at 1.39% for April.

Out of 16 participating PFAs, 15 reported positive returns in this category, with only OAK Pensions Limited experiencing a minor decline of -0.06%.

Top performers in RSA Fund I included:

• Tangerine Apt Pensions: 3.45%

• FCMB Pensions Limited: 1.67%

• Stanbic IBTC Pension Managers Limited: 1.61%

These figures underscore the potential upside of Fund I’s exposure to variable-income assets such as equities and corporate bonds.

RSA Fund II: Strong Returns for Contributors Under 50

RSA Fund II, the default fund for active contributors below age 50, recorded a solid average return of 1.34% in April.

Crusader Sterling Pensions led this category with a remarkable 1.91% return. Norrenberger Pensions and Pensions Alliance Limited followed closely, delivering 1.88% and 1.68% respectively.

This fund remains the largest in the RSA structure and has continued to generate consistent value for its contributors.

RSA Fund III: Stable Gains for Pre-Retirement Contributors

RSA Fund III, tailored for contributors aged 50 to 60 who typically pursue a more conservative investment strategy, returned an average of 1.22% in April.

Leading the way in this category:

• Crusader Sterling Pensions: 1.86%

• Pensions Alliance Limited: 1.58%

• Leadway Pensure PFA Limited: 1.44%

These gains reflect prudent asset management and balanced portfolio exposure within the limits defined by regulations for contributors nearing retirement.

RSA Fund IV: Conservative Fund Shows Modest Growth

RSA Fund IV, the most conservative of the RSA categories and designed specifically for retirees, posted the lowest average return at 1.18% in April. Nonetheless, the gains remained positive and competitive.

Top performers in Fund IV included:

• Crusader Sterling Pensions: 1.65%

• OAK Pensions Limited: 1.31%

• Pensions Alliance Limited: 1.29%

Despite the lower risk appetite, the consistent returns validate the fund’s ability to preserve capital while delivering modest income.

Behind the Numbers: Pension Fund Assets Surge

Nigeria’s pension industry continues to grow, with data from the National Pension Commission (PenCom) showing that total pension assets reached ₦23.27 trillion as of February 2025. This marks a 1.77% increase from the ₦22.86 trillion recorded in January.

The latest asset breakdown highlights the dominance of Federal Government securities, which make up 62.18% of total holdings, equivalent to ₦14.47 trillion. Corporate debt securities and money market instruments account for 10.01% and 9.51%, respectively.

Investment in domestic equities also rose to ₦2.58 trillion, representing 11.10% of total assets, while mutual fund investments totaled ₦84.76 billion or 0.36%.

This diversified portfolio strategy has allowed the industry to remain resilient in the face of Nigeria’s economic headwinds, including inflationary pressures, currency volatility, and broader global uncertainties.

RSA Registrations and Fund Distribution Growth

As of February 2025, RSA registrations reached 10.65 million, reflecting a 3.82% year-on-year growth. This steady rise underscores the increasing participation in Nigeria’s contributory pension scheme, which has become a crucial retirement planning tool for the country’s working population.

RSA Fund II holds the largest Net Asset Value (NAV) among the four categories, accounting for ₦9.62 trillion or 41.33% of total pension assets. Fund III follows with ₦6.06 trillion, while Fund IV, catering to retirees, grew by 2.25% to reach ₦1.71 trillion.

These figures confirm the pension industry’s growing relevance and the increasing trust Nigerians are placing in long-term savings vehicles for their retirement security.

Conclusion: Resilience Amid Headwinds

April 2025’s performance proves once again that Nigeria’s pension fund industry remains a bulwark of financial stability, even in challenging times. The sector has not only preserved value but has delivered solid returns across all RSA categories.

Tangerine Apt and Crusader Sterling Pensions have emerged as standout performers, showcasing the benefits of proactive investment strategies and efficient fund management. As economic uncertainties persist, the sustained strength of the pension system will continue to play a pivotal role in safeguarding the retirement future of millions of Nigerians.