Abuja, Nigeria – Nigeria’s National Pension Commission (PenCom) has increased the allowable investment limits for ordinary shares across key Retirement Savings Account (RSA) fund categories. The move is aimed at improving asset allocation efficiency and addressing liquidity pressures in the pension system.
Okay News reports that the adjustments, announced on Monday, February 9, 2026, come as an addendum to the Revised Regulation on Investment of Pension Fund Assets originally issued in September 2025. The revision addresses implementation challenges that emerged after the 2025 regulatory overhaul, particularly the shortage of qualifying alternative assets that had limited pension fund administrators (PFAs) from fully deploying funds.
Under the new rules, equity exposure caps have been raised for several RSA fund classes: RSA Fund I from 30% to 35%, RSA Fund II from 25% to 33%, RSA Fund III from 10% to 15%, and RSA Fund VI (Active) from 25% to 33%. The changes take immediate effect for all licensed PFAs and custodians.
PenCom noted that the previous constraints had led to underutilization of investment limits and excess liquidity within the pension system. By expanding equity allocation headroom, the regulator aims to give PFAs additional flexibility while maintaining risk diversification across RSA portfolios.
Industry experts welcomed the move, highlighting its potential impact on the equities market. “The policy shift is likely to support domestic equity demand, particularly from institutional investors managing long-term retirement assets,” said Mr. Blakey Ijezie, founder of Okwudili Ijezie & Co. (Chartered Accountants). Mr. Tajudeen Olayinka, CEO of Wyoming Capital Partners, added that pension funds represent one of Nigeria’s largest pools of investable capital, and incremental adjustments to allocation limits can significantly influence market liquidity and price discovery.
Analysts expect the revision to trigger changes in pension fund equity allocations in the coming quarters, increase turnover on the Nigerian Exchange (NGX), and improve portfolio yields amid a high-interest-rate environment. PenCom also indicated follow-up measures to expand the availability of alternative assets, continuing its long-term push to diversify pension portfolios beyond fixed-income securities.
Since September 2025, PenCom has gradually increased allocations to private equity and infrastructure while reducing permissible exposure to government securities. Pension fund assets in Nigeria exceeded ₦26 trillion (approximately $16.7 billion) as of October 2025, and the regulator’s reforms aim to boost returns, support capital market growth, and improve retirement outcomes.
The latest equity investment limit adjustments reflect a strategic effort to modernise Nigeria’s pension system, enhance institutional investment impact, and strengthen market liquidity.
