NGX Pension Broad Index surpasses broader market with 59.72% return in 2025

The NGX Pension Broad Index, a benchmark for pension-compliant equity investments, recorded a 59.72 percent return in 2025, outperforming the NGX All-Share Index (ASI), which gained 51.19 percent over the same period.

The index closed the year at 2,917.84 points, up from 1,826.89 points at the end of 2024, reflecting strong performance by pension-eligible equities amid a year of heightened market activity and reform-driven investor confidence.

Unlike broader market indices, the NGX Pension Broad Index tracks only equities that meet the investment eligibility criteria set by the National Pension Commission (PenCom). This makes it a key reference point for Pension Fund Administrators (PFAs) seeking compliance with regulatory guidelines while generating competitive returns.

The index includes a diversified basket of high-quality equities across sectors such as financial services, telecommunications, consumer goods, industrials, and energy, providing a balanced exposure for pension portfolios. In 2025, the index outperformed the ASI by more than 850 basis points, reinforcing the potential of pension-compliant stocks to deliver strong, risk-adjusted returns.

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Analysts say the strong performance highlights the growing role of pension assets in capital formation and economic development, as well as the importance of transparent, rules-based indices for portfolio construction and long-term retirement planning.

NGX has reiterated its commitment to engaging with PenCom and the PFA community to promote market education, data analytics, and pension-focused investment products, helping investors make informed allocation decisions.

As Nigeria’s pension industry continues to expand, the NGX Pension Broad Index remains a critical tool for measuring performance, supporting long-term retirement outcomes, and deepening equity participation in the domestic capital market.

Iheanyi Nwachukwu

Iheanyi Nwachukwu, is a creative content writer with almost two decades journalism experience writing on banking, finance, capital markets, and tax. The multiple awards winning journalist is Assistant Editor, BusinessDay. Iheanyi holds BSc Degree in Economics from Imo State University; Master of Science (MSc) Degree in Management from University of Lagos. Iheanyi has attended several work-related trainings including (i) Advanced Writing and Reporting Skills (Pan African University, Lagos); (ii) News Agency Journalism (Indian Institute of Mass Communication {IIMC}, New Delhi, India); and (iii) Capital Markets Development and Regulations (International Law Institute {ILI} of Georgetown University, Washington DC, USA). Other trainings Iheanyi attended include: Economic/Political Risk Analysis (By Thomson Reuters Foundation); International Financial Journalism (IFJ) (By PMA Media Training, UK); Effective Business Writing Skills (By Phillips Consulting); Reporting on Corporate Governance (By International Finance Corporation (IFC) & Thomson Reuters Foundation UK); etc. In addition, he has participated in high-level economy & markets events in Dubai, South Africa, Morocco, and other African countries like Zambia, Ghana and Gambia.