BY NGOZI ONYEAKUSI

DG, PenCom

Nigeria’s pension industry is taking steps to channel more retirement savings into critical infrastructure, following a partnership between the Pension Industry Leadership Council (PILC) and UK-funded development agency, FSD Africa, to develop a proposed $750 million infrastructure investment fund.

The initiative has already attracted interest from 19 Nigerian pension funds and is expected to mobilise long-term domestic capital and development finance for investments in energy, transportation and digital infrastructure.

The two organisations signed a Memorandum of Understanding (MoU) on November 10, 2026, to support the development of the Nigeria Pension Industry Infrastructure Investment Platform (PIIP).

Under the agreement, FSD Africa will provide technical assistance and expert advice to PILC, including support for selecting a fund manager through a competitive process, engaging potential investors and development finance institutions, building capacity and supporting necessary regulatory reforms.

The initiative was developed by Nigerian Pension Fund Administrators (PFAs), with support from the National Pension Commission (PenCom) and FSD Africa.

The proposed platform is targeting an initial capital mobilisation of $350 million at its first close, expected in 2027, before scaling up to $750 million.

At full capacity, the fund aims to mobilise approximately $600 million from Nigerian pension funds and at least $150 million from development finance institutions.

Speaking on the initiative, Ms Omolola Oloworaran, Chair of PILC and Director-General of PenCom, described the proposed platform as timely, noting that the pension industry holds the country’s largest pool of long-term savings capital.

She said the industry was committed to mobilising the funds to support infrastructure development while safeguarding contributors’ retirement savings.

According to her, the MoU represents the industry’s first step towards unlocking pension assets for productive investment.

Similarly, Mark Napier, Chief Executive Officer of FSD Africa, said the initiative would help address the paradox of Africa having significant institutional capital while facing huge infrastructure funding gaps.

He expressed the agency’s commitment to working with PenCom and Nigeria’s pension industry to channel available capital into priority infrastructure projects.

The UK Deputy High Commissioner in Lagos, Jonny Baxter, also welcomed the partnership, describing it as progress towards attracting more domestic investment into the real economy.

He said the collaboration would create opportunities to translate investment ambitions into jobs and economic growth.

An initial assessment of Nigeria’s infrastructure pipeline identified 39 projects with potential relevance to the proposed platform, representing approximately $20 billion in investment requirements.

The fund will invest in equity and quasi-equity instruments, with at least 60 per cent of its portfolio earmarked for projects in Nigeria, while the remaining allocation will be available for selected investments across the region.

The proposed structure will comprise a naira-denominated core investment fund and a separate co-investment vehicle through which participating pension funds can invest alongside the core fund in selected projects.

A parallel foreign-currency vehicle may also be established to accommodate international investors.

The initiative is expected to provide institutional investors with access to professionally managed, long-term investment opportunities while addressing infrastructure financing needs across Nigeria and selected African markets.