Key Highlights
PenCom has increased equity investment limits for Retirement Savings Account (RSA) funds, effective February 9, 2026.
The move aims to improve asset allocation efficiency and address the shortage of qualifying alternative assets.
This revision follows implementation bottlenecks identified after the regulatory overhaul in September 2025.
Pension fund assets exceeded N26 trillion as of October 2025.
Nigeria’s National Pension Commission (PenCom) has announced an increase in the allowable investment limits for ordinary shares across key Retirement Savings Account (RSA) fund categories. The adjustment, revealed in an addendum released on Monday, February 9, 2026, amends the Revised Regulation on Investment of Pension Fund Assets originally issued in September 2025.
PenCom's action is designed to improve asset allocation efficiency, particularly given the scarcity of qualifying assets, especially in the alternative asset class. The commission stated that the revision is a targeted response to implementation bottlenecks identified following the 2025 regulatory overhaul.
Specifically, Section 9 of the regulation has been revised, increasing equity exposure caps for multiple RSA fund classes. The changes take immediate effect and apply to all licensed Pension Fund Administrators (PFAs) and custodians.
According to PenCom, implementation challenges emerged after the 2025 regulatory update, specifically regarding the new limits for ordinary shares, Federal Government of Nigeria (FGN) bonds, and alternative assets. By expanding equity investment headroom, the regulator aims to provide PFAs with additional flexibility to allocate funds more efficiently while maintaining risk diversification across RSA portfolios.
Investment experts have welcomed the move as a well-considered initiative, suggesting that it will provide additional support to the equities market. Market operators anticipate that the development may trigger increased activity in the stock market.
In September 2025, PenCom increased the maximum allowable allocation from Pension Fund Administrators (PFAs) to private equity funds from 5% to 10% and 5% to 15% across some funds and introduced 12 rigorous qualifying criteria for PE funds.
This adjustment occurs against a backdrop of growing pension-fund assets, which exceeded N26 trillion as of October 2025. Managers are diversifying to capture higher returns, supporting both capital markets and retirement outcomes.
