Earlier this month, the National Pension Commission (PenCom) revised pension investment rules, boosting equity allocations.
As a result, Pension Fund Administrators (PFAs) can now invest more freely across four RSA fund categories.
PenCom Boosts Equity Limits
Previously, PFAs struggled with limited alternative assets, leaving large sums of money idle within the system.
Now, the regulation raises equity limits, which could direct more funds into Nigerian equities:
- RSA Fund I: 30% → 35%
- RSA Fund II: 25% → 33%
- RSA Fund III: 10% → 15%
- RSA Fund VI: 25% → 33%
According to PenCom’s December 2025 report, PFAs could channel roughly ₦1.6 trillion into the stock market.
Market Momentum Continues
Meanwhile, the NGX All Share Index has gained 25.3% this year, building on a 50% jump in 2025.
Large-cap stocks such as MTN Nigeria, Seplat Energy, and Dangote Cement drove the rally, boosting investor confidence.
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Furthermore, macroeconomic indicators are improving: inflation has eased, foreign exchange has stabilised, and business activity is rising.
At the same time, softening fixed income yields make equities more attractive, especially for pension funds with long-term liabilities.
Structural Support For Growth
Additionally, many firms increased profits in 2025, so investors expect strong dividend payments in 2026.
Consequently, pension inflows, lower bond yields, and higher dividends could provide structural support to the market.
Unlike speculative flows, pension capital remains stable and long-term, which could deepen the market and reduce volatility.
In effect, PenCom’s revision acts as a structural catalyst, potentially reshaping equity liquidity dynamics.
With ₦1.6 trillion potential inflow, supportive dividends, and improving macro conditions, equities could outperform last year’s gains.
Therefore, the market now benefits from both momentum and regulatory-driven demand, shaping Nigeria’s 2026 equity trajectory.
