The federal government has sought to deploy the N23 trillion pension assets strategically to catalyse national development and address critical infrastructure gaps.
The pension fund is 8.6 per cent of the country’s GDP.
At an industry retreat in Lagos, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, emphasised that pension funds must play a greater role in driving inclusive economic growth while safeguarding the financial security of retirees.
“We must harness the transformative power of pension funds to support sustainable growth without compromising the security of retirees’ savings,” Edun said.
He commended the National Pension Commission (PENCOM) for initiating timely discussions on the role of pensions in shaping Nigeria’s economic future. The 2025 Pension Industry Leadership Retreat was held under the theme “Sustainable Retirement – Strategic Blueprint for Economic Development and Inclusion.”
The N23 trillion asset pool, managed under the Contributory Pension Scheme (CPS), is one of Africa’s most robust savings platforms. Despite this achievement, Edun noted that pension penetration in Nigeria remains low compared to global benchmarks.
He urged stakeholders to explore well-regulated, low-risk investment channels capable of delivering both strong returns and broad developmental impact.
“The industry is a key engine for long-term growth,” he said, citing its potential to finance infrastructure, housing, energy, and digital inclusion. “It can help bridge the significant gaps that have slowed Nigeria’s development.”
Edun also highlighted recent macroeconomic improvements, pointing to a Q1 2025 GDP growth rate of 3.84 per cent, stronger foreign reserves, and a more stable exchange rate. However, he stressed that the country must consistently achieve at least 7 per cent annual GDP growth to meaningfully reduce poverty and unemployment.
“With the national budget accounting for just 10 per cent of GDP, it’s clear that public spending alone cannot deliver the scale of growth we need,” the Minister said. “Institutional investors, particularly pension funds, must now take centre stage.”
He reaffirmed the Tinubu administration’s commitment to building a resilient, inclusive financial system. According to Edun, the strategic use of pension assets aligns with the government’s long-term vision for sustainable development and financial inclusion across Nigeria.
The PENCOM-hosted retreat convened industry leaders, regulators, and policymakers to develop a shared roadmap for unlocking the pension sector’s potential. As Nigeria works to close the gap with global pension benchmarks, the N23 trillion pension industry is increasingly seen as a powerful catalyst for economic transformation.
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