Abuja Network News
Thousands of Nigerian workers have moved their retirement savings in search of better investment returns, leading to a staggering ₦191.12 billion in pension fund transfers during the first quarter of 2025, according to data from the National Pension Commission (PenCom).
This shift represents a 19% rise in pension fund transfers compared to the last quarter of 2024, highlighting growing public interest in retirement fund performance and transparency.
📊 The Numbers Behind the Shift
27,701 RSA holders switched their Pension Fund Administrators (PFAs) in Q1 2025.
This is up from 23,226 transfers recorded in Q4 2024.
Since the transfer window began in 2021, over ₦1.77 trillion has been moved by 368,911 Nigerians.
PenCom’s report reveals that as pension contributors become more financially literate, they're increasingly holding PFAs accountable—seeking better returns, clearer communication, and more innovative fund strategies.
💼 Pension Industry Overview – Q1 2025
Total Pension Assets: ₦23.33 trillion (as of March 31, 2025)
Pension Contributions in Q1: ₦389.17 billion
New RSA Registrations: 105,993
Total RSA Holders: 10.69 million
Gender Breakdown: 57.4% Male, 42.6% Female
🔍 Where the Funds Are Invested
FGN Securities (Bonds & Treasury Bills): ₦14.48 trillion (62.1%)
Equities (Stock Market): ₦2.57 trillion (11.0%)
Money Market Instruments: ₦2.08 trillion (8.9%)
These figures show a cautious but steady expansion into riskier assets like equities as PFAs seek to improve returns amid inflationary pressures and economic uncertainty.
🚀 Performance and Public Confidence
The pension industry posted an annualized return of 19.3% in Q1 2025, driven by strong performances in equity markets and higher interest rates. PenCom says it is encouraging PFAs to diversify into alternative assets to maintain momentum and cushion future risks.
In total, over ₦1.64 trillion has been paid out in lump-sum retirement benefits since the beginning of the Contributory Pension Scheme (CPS), while ₦72.41 billion has gone to retirees receiving en-bloc payments due to low balances.
📈 Mid-Year Update: Assets Near ₦25 Trillion
As of June 2025, pension assets under management (AUM) climbed to ₦24.63 trillion, representing a 9.4% increase in just six months and a 20% year-on-year growth. FGN bonds remain the backbone of investments, now valued at ₦15.19 trillion, followed by equities at ₦3.08 trillion.
✅ Why Nigerians Are Switching PFAs
1. Higher Returns: Contributors are comparing historical performances of PFAs and opting for the most rewarding.
2. Transparency: Access to detailed, real-time statements and performance reports is now a major deciding factor.
3. Customer Service: Users prefer PFAs that offer better digital platforms, mobile access, and faster processing time.
💬 What This Means for You
If you're a Retirement Savings Account (RSA) holder under the Contributory Pension Scheme, you have the right to move your funds once a year to another PFA that better suits your financial goals. With the window open each quarter, more Nigerians are taking charge of their financial future.
📌 Summary Table
Metric Value (Q1 2025 / Mid‑2025)
RSA Transfers ₦191.12 billion (27,701 holders)
Total Pension Assets (Mar - Jun) ₦23.33 trn → ₦24.63 trn
New Contributions ₦389.17 billion
RSA Registrations (Total) 10.69 million
Accrued Rights Paid (Q1) ₦17.35 billion
Lump‑Sum Retirement Benefits ₦1.64 trillion (cumulative)
En-bloc Retiree Payments ₦72.41 billion
For more updates on the Nigerian economy, pension reforms, and financial policy developments, stay with Abuja Network News.
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