The National Pension Commission has urged pension fund administrators to diversify their investment portfolios by increasing allocations to alternative assets in a bid to enhance returns and ensure long-term sustainability.
The Director-General of the Commission, Omolola Oloworaran, made this call during a sensitisation workshop on investment in alternative assets held in Lagos for Chairpersons of the Board Investment Strategy and Risk Management Committees of PFAs.
Oloworaran said that over 80 per cent of pension fund assets are currently invested in fixed-income securities, with Federal Government securities alone accounting for 62 per cent of the total assets, which stood at N24.11tr as of May 30, 2025.
She stressed that the current macroeconomic environment, marked by inflation, foreign exchange volatility, and declining purchasing power, requires dynamic and resilient investment strategies.
“In this context, alternative assets provide a complementary pillar to the core investment strategies of pension funds,” she said. “Investments in infrastructure and private equity, in particular, help align pension fund portfolios with their investment horizon, provide opportunities for diversification, and enhance risk-adjusted returns.”
