Pension boom: FCMB Pensions smashes July 2025 rankings with 5.68% return

Nigeria’s pension industry sustained its upward momentum in July 2025, delivering positive returns across all Retirement Savings Account (RSA) fund categories despite macroeconomic headwinds and tighter financial conditions.

Data from Nairametrics Research showed that all 18 Pension Fund Administrators (PFAs) recorded gains for the month, with FCMB Pensions Limited emerging as the overall leader, posting an average return of 5.68% across all RSA fund types.

This performance was underpinned by particularly strong growth in RSA Fund II, where it delivered 7.29%. The industry-wide average stood at 4.20%, reinforcing investor confidence in the resilience of the contributory pension scheme.

RSA Fund I, the high-risk, high-return category, led the month with an average gain of 6.30%, buoyed by higher exposure to variable income instruments.

Trustfund Pensions Plc recorded the highest return in this category and in the entire pension system, with 9.37%, followed by Tangerine Apt Pensions at 9.10% and FCMB Pensions Limited at 8.90%.

RSA Fund II, the default for active contributors under 50, averaged 5.33%, led by FCMB Pensions Limited (7.29%), Pensions Alliance Limited (7.28%), and Crusader Sterling Pensions (6.89%).

RSA Fund III, targeted at contributors aged 50 and above, posted a 3.18% average return, with Crusader Sterling Pensions topping the chart at 5.32%, ahead of FCMB Pensions Limited (4.23%) and Pensions Alliance Limited (3.95%).

RSA Fund IV, the most conservative category for retirees, delivered 1.99% on average, led by Crusader Sterling Pensions (2.88%), Trustfund Pensions Plc (2.58%) and AccessARM (2.48%).

Other strong performers in July included Pensions Alliance Limited, which averaged 5.62% across all RSA funds, boosted by 8.89% in RSA Fund I and 7.28% in RSA Fund II; Trustfund Pensions Plc with a 5.48% average; Crusader Sterling Pensions Limited at 5.32%, led by 6.89% in RSA Fund II and the highest RSA Fund III return at 5.32%; Tangerine Apt Pensions with a 5.07% average and notable 9.10% in RSA Fund I; AccessARM at 4.99%, buoyed by 8.01% in RSA Fund I; Leadway Pensure PFA Limited with a 4.68% average, recording 6.80% and 6.45% in RSA Funds I and II; and Fidelity Pension Managers Limited, which achieved a 4.56% average with consistent returns across all categories.

NLPC Pension Fund Administrators Limited recorded the lowest return in RSA Fund I at 1.18%, though still positive.

As of June 2025, Nigeria’s total pension fund assets stood at N24.63 trillion, according to the National Pension Commission (PenCom), representing a 2.17% increase from N24.11 trillion in May. Federal Government of Nigeria (FGN) securities remained the dominant asset class, accounting for 61.65% or N15.19 trillion.

Corporate debt securities made up 9.19%, while money market instruments represented 9.08%. Investments in domestic equities rose to N3.08 trillion, making up 12.51% of total assets, and mutual funds contributed 0.75%, valued at N183.82 billion.

RSA registrations reached 10.79 million by June 2025, marking a 4.01% year-on-year increase. RSA Fund II remained the largest by net asset value at N10.29 trillion, accounting for 41.81% of total pension assets.

RSA Fund III expanded to N6.39 trillion, while RSA Fund IV, dedicated to retirees, recorded a 2.14% month-on-month growth, reaching N1.83 trillion.