AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
Compare PFA returns using each PFA's published unit price for the same RSA fund (for example Fund II) on the same two dates: the return is the end price divided by the start price, minus one. Compare several periods, annualise multi-year figures, and set them against inflation; a one-year ranking on its own says little, and past returns do not predict future ones.
PFA rankings appear in the press every year, usually based on one year of returns for one fund. They are a starting point, but they can mislead. This guide shows how to make the comparison yourself, using figures every PFA publishes, so that you compare like with like.
Why unit prices
Your RSA balance is a number of units multiplied by the fund's unit price. New contributions buy more units but do not change the price; investment gains and losses do. That makes the unit price a clean measure of how well the fund's money has been managed, separate from how much you have paid in. PFAs publish unit prices for each fund they run; check whether the published price is after fees, which it normally is, with your PFA.
Compare the same fund
PenCom's 2023 FAQ lists six funds with different rules: Fund I for under-50s on request, Fund II as the default for under-50s, Fund III for those 50 and above, Fund IV for retirees, Fund V for micro pension and Fund VI for non-interest investment. Each holds a different mix of assets, so comparing one PFA's Fund I with another's Fund III is comparing different things. Pick the fund you are in, usually Fund II or III, and compare that fund across PFAs. Our explainer on RSA Funds I to VI describes each.
The calculation
One period
Return = (unit price at end ÷ unit price at start) − 1.
Example only. A Fund II unit price rises from ₦5.20 to ₦5.85 over a year. ₦5.85 ÷ ₦5.20 = 1.125, so the return is 12.5%.
Several years
For a multi-year period, annualise so that periods of different lengths compare fairly: annual return = (end ÷ start) raised to the power of (1 ÷ years), minus one.
Example only. Over three years a unit price rises 40%, from ₦5.00 to ₦7.00. 1.40 to the power of one-third is about 1.1187, so the annualised return is about 11.87% a year, not 13.3% (40 ÷ 3), because returns compound.
After inflation
Real return = (1 + fund return) ÷ (1 + inflation) − 1. The NBS reported headline inflation of 14.63% year on year in September 2026 (Voice of Nigeria, 16 October 2026). Example only: a 12.5% fund return set against 14.63% inflation gives 1.125 ÷ 1.1463 − 1, about −1.86%. The balance grew in naira but bought slightly less. Use the inflation figure for the same period as the fund return.
Why two PFAs' returns on the same fund differ
PenCom sets limits on what each fund may hold, but within those limits each PFA chooses its own mix of government bonds, Treasury bills, bank deposits, corporate debt, equities and other assets. A PFA holding more equities will usually rise further in a strong stock market year and fall further in a weak one. A PFA holding more fixed-income securities moves more gently but can lag when shares rally. Looking at several years, including at least one weak year, shows which pattern you are buying. See where PFAs invest your pension for the asset classes.
As you approach retirement the comparison changes. Steadiness in Fund III starts to matter more than the highest return, because a large fall just before you retire has little time to recover.
A comparison table to fill in
| PFA (same fund) | 1-year return | 3-year annualised | 5-year annualised | Worst calendar year |
|---|---|---|---|---|
| PFA A | ||||
| PFA B | ||||
| PFA C |
Fill it from each PFA's published unit prices on identical dates. The worst calendar year shows how the fund behaved in a bad market, which matters as you near retirement.
Traps to avoid
- One-year rankings. A fund that topped one year can lag the next; look at three and five years.
- Different dates. A return to 30 June and one to 31 December are not comparable.
- Different funds. Fund I can hold more equities and swing more than Fund III.
- Size confused with performance. Nairametrics' AUM ranking for December 2024 measured assets, not returns; a large PFA is not automatically the best performer.
- Ignoring service. A slightly higher return is worth less if the PFA is slow to pay benefits.
Where to get the figures
- Each PFA's website, which usually publishes daily or periodic unit prices by fund.
- PenCom's monthly and quarterly reports, which Nairametrics described as the primary source for industry asset and RSA data.
- Your own statements, which show the price used on each date.
Save the prices you collect in a simple spreadsheet with the date and source of each, so you can repeat the comparison next year on the same basis.
Once you have the numbers, our guide to choosing a PFA sets returns alongside fees and service, and switching PFA covers the once-a-year transfer rule.
Questions people ask
Which PFA has the highest return in Nigeria?
It changes by year and by fund. Compare the same fund across PFAs over three and five years using published unit prices, rather than relying on one year's ranking.
How do I calculate my pension return?
Divide the unit price at the end of the period by the price at the start and subtract one. For several years, annualise the result.
What is a unit price in pension?
The value of one unit of an RSA fund. Your balance is your units multiplied by the price; the price moves with the fund's investments.
Is my pension beating inflation?
Compare your fund's return with NBS headline inflation for the same period. With inflation at 14.63% in September 2026, a lower fund return means a fall in buying power.
Sources
- Frequently Asked Questions 2023, National Pension Commission · accessed Oct 2026
- The big 5 pension fund administrators in Nigeria by AUM, Nairametrics (12 Sep 2025) · accessed Oct 2026
- Nigeria's headline inflation drops to 14.63 per cent, Voice of Nigeria (16 Oct 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.