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Fund I, designed for younger and risk-tolerant contributors, delivered more than 20 percent returns in September.
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PenCom says early pension participation is critical to long-term retirement security.
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Commission plans to adapt the pension framework to accommodate freelancers and workers in emerging sectors.
October 30, (THEWILL) – Nigeria’s growth-oriented pension portfolio, Fund I, generated returns of more than 20 percent in September, highlighting the strong performance of higher-risk pension investments.
The Director-General of the National Pension Commission (PenCom), Omolola Oloworaran, disclosed this on Monday during the opening ceremony of National Pension Week 2026, an awareness campaign focused on youth engagement and retirement planning.
She said the performance reflected the resilience and growth of pension investments, particularly Fund I, which is designed for younger contributors with a higher tolerance for investment risk.
“Pension fund performance continues to demonstrate strong resilience and growth, particularly under Fund I, the growth-oriented portfolio designed for younger contributors,” Oloworaran said.
The reported monthly return highlights the potential gains from Nigeria’s multi-fund pension structure, which lets contributors choose portfolios with different investment strategies and risk profiles.
Higher returns come with greater investment risk
Fund I is structured to accommodate contributors who have a longer investment horizon and can tolerate greater exposure to market fluctuations.
Its growth-oriented strategy allows pension fund administrators to allocate a larger proportion of assets to higher-risk investments in pursuit of stronger long-term returns.
However, the more than 20 percent return recorded in September should not be interpreted as a guaranteed or recurring monthly performance. Returns can vary with market conditions, asset valuations and the performance of individual investments.
The performance also does not establish that every contributor or pension fund administrator recorded the same return.
Nigeria’s Contributory Pension Scheme operates through Retirement Savings Accounts managed by licensed pension fund administrators.
Its multi-fund arrangement gives contributors access to different investment profiles based on factors including age and risk appetite.
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PenCom targets young and flexible workers
Beyond investment performance, Oloworaran used the opening of National Pension Week to urge young Nigerians to begin retirement planning early.
She said the commission chose to begin the awareness campaign with young people because the long-term sustainability of the pension system depends on their participation.
The PenCom chief also acknowledged the changing nature of employment, particularly the growing number of Nigerians working in technology, creative industries, agriculture and freelancing.
She said the traditional pension framework was designed around a career structure in which workers had one employer, one salary and 35 years of service.
According to her, PenCom is working towards a system that reflects modern employment patterns and accommodates people whose earnings may come from multiple sources or flexible work arrangements.
The focus on younger workers signals a broader effort to extend pension participation beyond conventional salaried employment and ensure that more Nigerians can build retirement savings during their active earning years.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
