PFAs retreat from govt securities in hunt for higher returns

Pension Fund Administrators (PFAs) are retreating from government securities and diversifying to other assets that promise them higher returns. In 2019, PFAs’ exposure to government securities stood at 71 percent, but this has reduced to 62 percent this year. One area PFAs have found a new opportunity is in infrastructure funds, where their assets value rose by 43 percent in one year, moving from N152.36 billion in February 2024 to N218.55 billion in February 2025, according to data from the National Pension Commission (PenCom). Pension Fund Administrators (PFAs) are retreating from government securities and diversifying to other assets that promise them higher returns. In 2019, PFAs’ exposure to government securities stood at 71 percent, but this has reduced to 62 percent this year. One area PFAs have found a new opportunity is in infrastructure funds, where their assets value rose by 43 percent in one year, moving from N152.36 billion in February 2024 to N218.55 billion in February 2025, according to data from the National Pension Commission (PenCom).