In Nigeria, 70% of pension funds are invested in bonds
By the AFREEQUE newsroom, based on Business Day Nigeria
About 70% of Nigerian pension fund assets are invested in bills and bonds, mainly government securities, slowing financing of the economy. According to the OECD, cited by Business Day, this rate contrasts with South Africa and Botswana, where it is below 20%.
About 70% of the assets of Nigerian pension funds are invested in bills and bonds, the vast majority of them in national public debt securities, according to the Organisation for Economic Co-operation and Development (OECD). These figures appear in its Africa Capital Markets Report 2026.
The assets of Nigerian pension funds represented about 6% of GDP in 2025, compared with 84% in South Africa and 58% in Botswana. According to the OECD, national rules limit diversification: funds are generally barred from investing abroad, and their share in equities is capped at between 5% and 30% depending on the type of fund. The organisation warns that a prolonged maintenance of these restrictions increases the concentration of investments and sovereign credit risk.
