Nigeria’s pension industry recorded strong growth in April, with total assets rising 31% year-on-year to about $22.6 billion. The increase was largely driven by a sharp rise in domestic equity holdings, whose value more than doubled and contributed nearly $3 billion to pension assets during the period. While federal government securities remain the dominant investment class for pension funds, the stock market’s growing contribution highlights efforts to diversify portfolios and increase participation in public markets. Supporting that shift, Nigeria’s pension regulator recently relaxed a rule preventing investments in companies that have not demonstrated profitability for three consecutive years. The growth also highlights the broader potential of African pension and reserve funds, which the Africa Finance Corporation says could help finance the continent’s vast infrastructure needs if mobilized effectively.
Semafor
