February 11, 2026/CSL Report
Nigeria’s National Pension Commission (PenCom) has raised equity investment limits across the Retirement Savings Account (RSA) multi-fund structure, signaling a strategic pivot towards growth-oriented asset allocation.
Announced in an addendum issued on 9 February 2026, the changes respond to implementation constraints that emerged after the 2025 pension investment reforms, particularly the limited availability of qualifying alternative assets. The revised rules take immediate effect for all Pension Fund Administrators (PFAs) and are aimed at improving capital deployment efficiency within Nigeria’s pension asset pool.
Under the new framework, maximum equity exposure has been increased across all major RSA categories. The cap for RSA Fund I (aggressive) was raised from 30% to 35%, while RSA Fund II (balanced) and RSA Fund VI (active) both increased from 25% to 33%.
Even the conservative RSA Fund III, typically designed for contributors nearing retirement, saw its equity limit lifted from 10% to 15%. These adjustments give PFAs greater flexibility to manage portfolios in a system characterised by excess liquidity and a narrow range of investable non-sovereign instruments.
For equity investors, the changes are a clear positive for the Nigerian Exchange (NGX). Increased pension participation in equities should support liquidity, valuations, and price discovery, particularly for companies with strong fundamentals, credible governance, and consistent dividend histories.
As PFAs approach their recapitalisation deadlines later in 2026, the ability to deploy capital more dynamically will be a key competitive differentiator. The ultimate success of this reform, however, will depend on the depth and quality of listed equities available to absorb sustained institutional inflows without distorting market pricing.
Click here to download full report: CSL Nigeria Daily – 11 February 2026 – Economy.pdf
