As a pension contributor, it is important to understand how your pension savings grow and what drives the returns you see. Here is a guide to help you better understand your pension fund performance.
What Is Fund Performance?
Fund performance measures how well your pension fund grows over time. It reflects the profit or loss generated by the investments in your fund, such as government bonds, corporate bonds, equities, and other instruments approved by the National Pension Commission (PenCom).
What Are Returns?
Returns are the gains or losses on your pension contributions, usually expressed as a percentage of the fund’s value. For example, if your fund earns ₦10,000 on a ₦100,000 investment, your return is 10%. Returns can be measured monthly, year-to-date, over multiple years, or from inception to date.
For pension funds, just like any other long-term investment, longer-term parameters provide a more reliable measure of fund performance.
While shorter-term reports, such as monthly, can seem an immediate relief, longer-term parameters, which are often a reflection of a fund manager’s consistent investment discipline and long-term strategy, are a more reliable indicator of fund performance.
Pension funds are designed to build wealth steadily over time, and their performance is best evaluated through a long-term lens rather than shorter periods such as monthly results.
Factors That Affect Returns
Investment Mix: The type of assets your fund invests in (stocks, bonds, money market instruments) affects both risk and potential returns. PenCom regulates how funds are safely invested based on contributors’ risk profiles.
Market Conditions: Economic trends, interest rates, and inflation can affect returns. Since pension funds are invested within the broader macroeconomic environment, these factors are often reflected in your fund’s ongoing performance.
Fund Management: Experienced managers balance risk and growth, prioritising safety while optimising returns, a focus that CrusaderSterling Pensions is fully aligned with.
Short-Term vs. Long-Term Returns
Monthly or quarterly returns may fluctuate due to market changes. While short-term returns give a snapshot, your pension is a long-term investment. Focus on sustained growth over the years rather than temporary highs or lows.
What to Look Out For
Consistency: Look for steady, long-term returns rather than occasional spikes.
Transparency: Your PFA should provide regular, clear updates on your fund performance.
Monitor Your Fund: Download the CrusaderSterling Pensions mobile app (Android & iOS) to track your performance and contributions in real time.
Review your statements regularly.
Use the mobile app to stay on top of your fund’s growth and make informed decisions.
Your pension fund is designed to grow steadily over time. By understanding performance and returns, and using tools like our mobile app, you can ensure your savings work for you now and in the future.
Pencom Launches Personal Pension Plan, Rebrands Micro Pension Scheme
PenCom has rebranded and expanded the Micro Pension Plan and former Voluntary Contribution scheme into a unified Personal Pension Plan (PPP). The PPP enables self-employed individuals, freelancers, and informal-sector workers to voluntarily contribute and build structured retirement savings.
This initiative supports broader pension inclusion and financial security under the Contributory Pension Scheme (CPS).
Pencom and ICPC Partner to Address Pension Contribution Defaults
PenCom and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) have signed a Memorandum of Understanding to strengthen oversight, investigations, and enforcement against employers who fail to remit pension contributions.
The collaboration establishes a coordinated framework for information-sharing and enforcement to safeguard contributors’ funds and uphold integrity within the pension industry.
Monetary Policy Rate
At the last Monetary Policy Committee meeting in September 2025, the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) adopted a more accommodative stance, cutting the Monetary Policy Rate (MPR) by 50 basis points to 27.0%.
The Committee also reduced the Cash Reserve Ratio (CRR) for commercial banks to 45% (from 50%), retained 16% for merchant banks, and introduced a 75% CRR on non-TSA public sector deposits.
Additionally, it adjusted the asymmetric corridor to +250/-250 basis points around the MPR, while keeping the liquidity ratio at 30%. These measures reflect the MPC’s response to sustained disinflation and a gradually improving macroeconomic environment.
Inflation
Nigeria’s inflation continued its downward trend in September 2025, extending the disinflationary momentum of recent months. Headline inflation eased to 18.02% year-on-year from 20.12% in August, driven by broad-based price moderation.
On a month-on-month basis, inflation slowed slightly to 0.72% from 0.74% in the previous month. The food index recorded a sharp decline, dropping to 16.87% year-on-year (August: 21.87%), with monthly food inflation moderating to 1.57% from 1.65%
Reflecting lower prices of key staples such as maize, garri, beans, millet, potatoes, onions, eggs, tomatoes, and fresh pepper. Core inflation, which excludes volatile food and energy items, also eased to 19.53% year-on-year from 20.33% in August.
External Reserve
Nigeria’s external reserves rose further in October 2025, reaching $43.17 billion from $42.33 billion in September, according to Central Bank of Nigeria (CBN) data.
The steady buildup reflects renewed investor confidence and stronger foreign exchange inflows, supported by higher portfolio investments, stable oil receipts, and increased diaspora remittances. This upward trend continues to underpin the recent stability in the foreign exchange market.
Foreign Exchange
The Nigerian foreign exchange market extended its positive run in October 2025, with the naira appreciating across both official and parallel market segments. At the official window, the naira gained 3.63% month-on-month, closing at ₦1,421.73/$ compared to ₦1,475.34/$ in September.
Likewise, the parallel market recorded a 3.33% appreciation, as the currency strengthened to ₦1,450/$ from ₦1,500/$ the previous month. The improvement reflects sustained foreign inflows, enhanced market confidence, and increased dollar liquidity, supported by policy reforms and stronger external reserve levels.
Equities Market
The Nigerian equities market sustained its bullish streak in October 2025, as investors continued to respond positively to improving corporate performance and market sentiment.
The NGX All-Share Index (ASI) advanced by 7.99% month-on-month. The rally was fueled by broad-based gains across sectors, supported by strong third-quarter earnings and renewed buy-side interest from investors.
Fixed Income Market
Nigeria’s fixed-income market sustained its positive momentum as yields declined across all segments. Average yields on Nigerian Treasury Bills (NTBs) fell by 47 basis points to 17.46% from 17.93% in September, while FGN bond yields eased by 44 basis points to 15.90% from 16.34% in the previous month.
The moderation in yields was supported by improved market liquidity and positive sentiment following the Monetary Policy Committee’s (MPC) recent rate cut.
At the October 2025 FGN bond auction, the Debt Management Office (DMO) reopened the 17.945% FGN AUG 2030 (5-year) and 17.95% FGN JUN 2032 (7-year) issues, offering ₦260 billion. Investor appetite was exceptionally strong, with total subscriptions reaching ₦1.06 trillion, underscoring robust confidence in government securities.
The DMO eventually allotted ₦313.78 billion, with marginal rates easing to 15.83% and 15.85%, respectively—down from 16.00% and 16.20% recorded in September. Read the similar post on this page.
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