Nigeria's pension industry delivered remarkable performance in Q3 2025, with several Pension Fund Administrators (PFAs) standing out through strong returns across all Retirement Savings Account (RSA) fund categories.
The industry demonstrated resilience with returns rebounding significantly from August’s modest 0.40% to 1.24% in September, signaling improved market conditions and strategic fund management.
July 2025 was a standout month across the industry, with FCMB Pensions Limited leading the pack at 5.68%, outperforming the industry average of 4.20%.
| PFA | Average Return (%) |
|---|---|
| FCMB Pensions Limited | 5.68 |
| Pensions Alliance Limited | 5.62 |
| Trustfund Pensions Plc | 5.48 |
| Crusader Sterling Pensions Limited | 5.32 |
| Tangerine Apt Pensions | 5.07 |
In the latter part of Q3, Nigeria Police Force Pensions Limited (NPFP Ltd) sustained impressive momentum, topping charts for two consecutive months with an average return of 2.25% in September 2025.
Top 5 PFAs in September 2025
| PFA | Average Return (%) |
|---|---|
| Nigeria Police Force Pensions Limited | 2.25 |
| Pensions Alliance Limited | 1.50 |
| CardinalStone Pensions | 1.45 |
| OAK Pensions Limited | 1.44 |
| Veritas Glanvills Pensions Limited | 1.39 |
The RSA Fund structure allows contributors to choose investment risk levels based on their age and retirement goals. In Q3 2025, performance improved across all categories, especially in RSA Fund I, designed for contributors with higher risk tolerance.
Fund Category Breakdown (September 2025)
| RSA Fund Type | Description | Average Return |
|---|---|---|
| Fund IV (Retiree Fund) | Low-risk fund for retirees | 1.32% |
| Fund III (Pre-Retiree Fund) | Moderate risk for those near retirement | 1.27% |
| Fund I (High-Risk Fund) | Growth-focused for younger contributors | 1.26% |
| Fund II (Default Fund) | Balanced fund for most contributors | 1.09% |
RSA Fund I delivered the highest average return at 6.30% in July, demonstrating how variable income instruments benefited from favorable market conditions.
Several factors contributed to the strong quarterly results across the pension industry:
Stable bond yields around 17–18% and mild equity recovery supported portfolio gains across PFAs, especially those with diversified exposure.
Fund managers effectively navigated market volatility through tactical portfolio rebalancing, optimizing between fixed-income securities and equities.
PFAs maintained a balanced mix across Federal Government Securities, money market instruments, and listed equities, helping minimize risk while capturing upside opportunities.
Beyond quarterly numbers, long-term consistency remains the strongest indicator of fund health and management quality.
Over the last 12 months (October 2024–September 2025), the following PFAs have delivered steady, above-average performance across multiple RSA fund types:
| PFA | Average Annual Return (2024–2025 YTD) | Strengths |
|---|---|---|
| Pensions Alliance Limited | 13.04% | Consistent growth across all RSA funds |
| Trustfund Pensions Plc | 12.14% | Strong fund management, especially in Fund II |
| FCMB Pensions Limited | 11.98% | Aggressive growth and a well-diversified portfolio |
| Crusader Sterling Pensions | 11.22% | Conservative management, steady returns |
| ARM Pensions Managers | 10.91% | Balanced approach with robust client services |
Such consistency signals strong investment frameworks and risk-adjusted performance, which are key for long-term contributors aiming to maximize their retirement balance.
Choosing the best PFA is not just about the highest short-term return — it’s about alignment with your risk profile, age, and financial goals.
Here’s how to evaluate your options effectively:
Visit platforms like nairaCompare.ng
Use the Pension Fund Comparison Tool to review real-time fund returns and management ratings across PFAs.
Review 12-Month Averages
A single quarter may not tell the full story. Always check year-to-date and one-year averages.
Check Fund Composition
Funds that balance government bonds, equities, and money markets tend to deliver more stable long-term performance.
Evaluate Digital Access & Transparency
A good PFA provides easy online account access, real-time statements, and responsive customer service.
Consider Fees and Track Record
While most PFAs charge similar fees (typically under 2% annually), efficiency and fund management quality make a big difference.
Your age and retirement timeline should guide which RSA fund and PFA you select:
Under 50 years:
Choose RSA Fund II (default) or RSA Fund I if you want aggressive growth.
50–60 years:
Opt for RSA Fund III, which offers moderate growth and reduced risk.
Retirees (60+ years):
Automatically moved to RSA Fund IV, prioritizing capital preservation and low volatility.
When reviewing PFAs, look for those with consistent growth, strong fund governance, and transparent reporting.
Nigeria’s pension sector continues to grow steadily, backed by strong regulation and asset expansion.
Analysts expect the upward trend to continue into Q4 2025, with fixed-income yields and stable inflation creating favorable conditions for fund managers.
With bond yields projected to remain between 16–18%, PFAs are expected to sustain positive momentum through Q4.
Equity exposure, particularly in the banking and consumer goods sectors, could further enhance returns for higher-risk RSA Fund I and Fund II investors.
However, contributors should continue to monitor inflation pressures and exchange rate volatility, as these factors may influence short-term returns.
Q: Which PFA had the best overall performance in Q3 2025?
Nigeria Police Force Pensions Limited led the latter part of Q3, while FCMB Pensions Limited dominated July. Performance varies across fund categories.
Q: Can I switch my PFA based on performance?
Yes. The PenCom transfer window allows contributors to switch PFAs. Review at least 2–3 quarters of data before switching.
Q: How often should I check PFA performance?
Quarterly reviews are ideal. PenCom and independent analysts publish monthly and annual reports that you can access via nairaCompare.
Q: What’s the industry average return for Q3 2025?
Monthly averages ranged from 0.40% in August to 4.20% in July, reflecting typical quarter-on-quarter fluctuations.
Q: Are PFAs regulated?
Yes. All PFAs are regulated by the National Pension Commission (PenCom), ensuring fund safety and compliance with investment guidelines.
Q3 2025 reaffirmed the strength of Nigeria’s pension industry, highlighting PFAs like Nigeria Police Force Pensions Limited, FCMB Pensions Limited, and Pensions Alliance Limited as consistent outperformers.
Still, the best PFA depends on your RSA fund type, age, and investment horizon.
To get the most value from your retirement contributions, track performance regularly and compare options using nairaCompare’s live pension fund dashboard.
Ready to maximize your retirement growth?
Compare top-performing investment options now on nairaCompare.ng
Disclaimer:
Past performance is not a guarantee of future returns. All figures are based on publicly available pension industry data as of October 2025. Always consult a licensed financial advisor before making pension-related decisions.