Nigeria’s Top Performing Pension Fund Managers in April 2025
Lagos, Nigeria – May 8, 2025 – The Nigerian pension industry continued to show resilience in April 2025, with sixteen Pension Fund Administrators (PFAs) achieving an average return of 0.91% across various Retirement Savings Account (RSA) funds, according to data compiled by Nairalytics, the research arm of Nairametrics. Despite economic challenges, including an inflation rate of approximately 34.6% (based on March 2025 estimates from the National Bureau of Statistics), top-performing PFAs demonstrated strategic investment approaches to deliver competitive returns. Below is a detailed breakdown of the top performers for April 2025, focusing on their performance across RSA Fund categories.
Top Performing PFAs in April 2025
The following PFAs led the industry in April 2025, based on their average returns across RSA Funds I, II, III, and IV, as reported by Nairametrics. Note that ARM Pension Managers Limited, Leadway Pensure PFA Limited, and CardinalStone Pensions (Radix Pension Fund Managers Limited) were excluded from the analysis due to incomplete data.
- Crusader Sterling Pensions Limited
- Average Return: 1.29%
- Key Performance:
- RSA Fund I: 1.18% (high-risk fund for contributors under 50, benefiting from equity market exposure).
- RSA Fund II: 1.25% (default fund for contributors under 50, balanced risk).
- RSA Fund III: 1.31% (conservative fund for contributors aged 50-60).
- RSA Fund IV: 1.41% (retiree fund, highest return in its category, driven by fixed-income securities).
- Analysis: Crusader Sterling’s strong performance reflects its diversified portfolio, with significant allocations to Federal Government of Nigeria (FGN) securities (62.59% of industry assets) and a strategic pivot to corporate bonds, which rose to N2.28 trillion industry-wide by October 2024, per Businessday NG. Its ability to navigate volatile equities markets, which dipped in Q1 2025, underscores robust fund management.
- NLPC Pension Fund Administrators Limited
- Average Return: 1.20%
- Key Performance:
- RSA Fund I: 1.10%
- RSA Fund II: 1.18%
- RSA Fund III: 1.22%
- RSA Fund IV: 1.30%
- Analysis: NLPC’s consistent returns across all funds highlight its conservative yet effective strategy, heavily weighted toward FGN bonds and treasury bills, which offer stability amid inflation. Its performance in Fund IV reflects growing demand for retiree-focused funds, with industry assets in this category reaching N1.674 trillion by January 2025.
- OAK Pensions Limited
- Average Return: 1.16%
- Key Performance:
- RSA Fund I: 1.05%
- RSA Fund II: 1.12%
- RSA Fund III: 1.18%
- RSA Fund IV: 1.37% (second-highest in the category).
- Analysis: OAK Pensions, recognized as a top performer by its own blog, excels in retiree funds, leveraging low-risk investments like FGN securities and money market instruments (9.1% of industry assets). Its diversified approach and strong customer service, as noted by blog.oakpensions.com, contribute to its ranking.
Performance by RSA Fund Categories
The Nigerian pension industry operates under a multi-fund structure, aligning investments with contributors’ age and risk profiles. The performance of RSA funds in April 2025 varied by category, reflecting risk-return dynamics:
- RSA Fund I (High Risk, Contributors Under 50):
- Average Return: 0.62%
- Top Performer: Crusader Sterling Pensions (1.18%)
- Notes: This fund, designed for aggressive investors, underperformed due to equity market volatility, with the Nigerian Stock Exchange (NGX) showing mixed results in Q1 2025. Only 20-75% of the fund is allocated to variable income instruments, limiting exposure to market dips.
- RSA Fund II (Balanced, Default for Contributors Under 50):
- Average Return: 0.75%
- Top Performer: Crusader Sterling Pensions (1.25%)
- Notes: As the largest fund by Net Asset Value (N9.431 trillion, 41.26% of industry assets), Fund II benefits from a balanced portfolio, with 63.2% in FGN securities and 8.6% in local equities, per Nairametrics. Its stability makes it a benchmark for PFA performance.
- RSA Fund III (Conservative, Contributors Aged 50-60):
- Average Return: 0.98%
- Top Performer: Crusader Sterling Pensions (1.31%)
- Notes: This fund, with N6.014 trillion in assets, prioritizes capital preservation, allocating up to 20% to variable instruments. Its strong performance reflects rising yields on fixed-income securities, such as treasury bills at 28.20% in December 2024.
- RSA Fund IV (Retiree Fund, Highly Conservative):
- Average Return: 1.22%
- Top Performer: Crusader Sterling Pensions (1.41%)
- Notes: Fund IV, with N1.674 trillion in assets, led all categories due to its heavy weighting in low-risk FGN securities and corporate bonds, which grew 61% industry-wide in 2024. OAK Pensions’ 1.37% return highlights its retiree-focused expertise.
Industry Context and Economic Challenges
Nigeria’s pension fund assets reached N22.86 trillion as of January 31, 2025, a 1.55% increase from December 2024, with 10.61 million RSA registrations, per Nairametrics. However, high inflation (34.80% in December 2024) resulted in negative real returns, with a 19% nominal return in 2024 translating to a double-digit loss in real terms, per Businessday NG. The industry’s reliance on FGN securities (62.59% of assets) ensures stability but limits returns, as these assets yield single-digit rates, per Nairametrics. Recent diversification into private equity (0.56% of assets) and foreign money market instruments (204% growth in 2024) aims to boost yields, as noted by the National Pension Commission (PenCom).
Public sentiment on X, exemplified by @Nairametrics’ post on May 8, 2025, underscores the focus on top performers like Crusader Sterling, NLPC, and OAK Pensions, with contributors encouraged to monitor PFA performance amid economic headwinds.
Implications for Contributors
The strong performance of Crusader Sterling, NLPC, and OAK Pensions in April 2025 highlights the importance of selecting PFAs with proven track records and diversified portfolios. Contributors, particularly those in Fund II and IV, benefit from PFAs that balance fixed-income stability with selective equity exposure. With PenCom’s push for infrastructure and private equity investments, as reported by Reuters, future returns may improve, though regulatory constraints on riskier assets remain a challenge.
For RSA holders, switching PFAs is an option, with 63,728 transfers recorded since Q4 2020, per Nairametrics. However, contributors should assess long-term performance, transparency, and customer service, as advised by blog.transferxo.com, before making decisions.
Sources: Nairametrics, Businessday NG, blog.oakpensions.com, blog.transferxo.com, Reuters, National Bureau of Statistics, posts on X
