Pension funds invested in Federal Government of Nigeria (FGN) debt securities rose by 16.9 per cent year-on-year to ₦16.925 trillion as of February 2026, up from ₦14.468 trillion recorded in the same period in 2025.

Data released by the National Pension Commission (PenCom) also showed that total pension assets grew by 28.7 per cent to ₦29.426 trillion, compared to ₦23.266 trillion a year earlier, driven largely by higher yields on government securities.

A breakdown of the figures indicates that FGN bonds accounted for 57.5 per cent of total pension assets, underscoring the dominance of government instruments in pension fund portfolios.

PenCom attributed the heavy investment in government securities to regulatory guidelines that limit exposure to other asset classes.

Further analysis revealed a sharp increase in treasury bills holdings, which rose by 41.2 per cent year-on-year to ₦987.025 billion. However, investment in Sukuk bonds recorded a slight decline to ₦100.23 billion from ₦100.478 billion in the corresponding period.

Analysts say the trend reflects prevailing economic conditions and policy direction.

“The high interest rate environment and the government’s increased borrowing to finance the budget deficit have driven investments in fixed-income securities,” InvestData Consulting noted.

Also speaking, Highcap Securities Executive Vice Chairman, David Adonri, described government securities as attractive due to their safety, liquidity, and competitive returns.

“As pension funds grow, more investments will naturally flow into FGN instruments, especially given PenCom’s guidelines,” he said.