Pension Fund Return on Investment Surpasses Inflation Rate

Ebere Nwoji

The pension sector in the month of March this year achieved a major turning point in its investment  activities with contributors’ savings as  return on investment officially surpassed the national inflation rate. 

Pension Fund managers said among the five funds into which the funds are divided for investment, fund 1 yielded the highest returns of 24.92 per cent.

The Director General of PenCom, MS  Omolola Oloworaran, confirmed this recently at a round table conference with the leadership of the Trade Union Congress  of Nigeria(TUC) .

Oloworaran, said for the first time in over five years (specifically since March 2026), pension fund investment returns have officially surpassed the national inflation rate, marking a major turnaround for the Contributory Pension Scheme (CPS).

“For the first time in may be over five to seven years, as of the month of March 2026, we have surpassed the inflation rate in terms of pension returns. This is to let you know that our reforms are working, and we will continue to ensure that we do everything we can to maximise returns for every contributor,” she assured.

She attributed the success to strategic “Pension Revolution 2.0” initiatives, which have seen a diversification of pension assets into high-yielding  instruments and infrastructure projects designed to buffer the impact of rising prices.

Investment analysts said annual headline inflation was 15.38 percent  in March 2026, a slight uptick from February but significantly lower than the  over 33 percent rates seen in 2024.