Pension Funds Commit ₦241bn to Nigeria Infrastructure Fund
Nigeria’s pension industry has committed ₦241 billion to an infrastructure development fund as part of efforts to channel long-term pension capital into infrastructure projects across the country.
The initiative is being developed through the Pension Industry Infrastructure Consortium, established by the Pension Industry Leadership Council (PILC) in collaboration with FSD Africa.
Omolola Oloworaran, chairman of the PILC and director-general of the National Pension Commission (PenCom), disclosed the commitment during a press briefing in Lagos.
“The industry has committed a total of N241 billion, and we expect that to rise to over N300 billion as we receive all the commitments,” Oloworaran said.
She explained that the ₦241 billion represents the amount committed by the pension industry to the initiative and has not yet been invested in infrastructure projects.
Fund expected to exceed ₦300bn
The infrastructure consortium is expected to mobilise more than ₦300 billion as additional commitments are received.
The initiative is designed to create a vehicle through which pension funds can participate in financing infrastructure while gaining access to long-term investment opportunities that match the long-term nature of retirement savings.
The industry is also engaging development partners that could potentially provide additional capital alongside the pension funds.
Investment framework still being developed
The specific infrastructure projects that will receive funding have not yet been selected.
Oloworaran said the framework for the initiative is still being developed, with several steps required before the funds can be deployed.
These include completing an agreement with FSD Africa and appointing a fund manager responsible for managing the investment vehicle.
The remaining arrangements are expected to be completed by the second quarter of 2027.
The PenCom chief explained that the industry has not yet determined the specific infrastructure assets or projects that will receive the funds because discussions around the investment framework are still ongoing.
Pension funds eye long-term infrastructure opportunities
The initiative is expected to expand the role of pension funds in financing infrastructure development while providing pension investors with access to long-duration assets.
Infrastructure investments can be attractive to pension funds because of their long-term nature and potential to provide returns over extended periods.
Oloworaran also noted that infrastructure assets could provide some protection against inflation.
“This is the first step we are taking as an industry, and this is just the beginning,” she said.
The consortium could therefore become an additional source of long-term financing for infrastructure projects as Nigeria seeks to address its infrastructure financing needs.
PenCom develops Pensions 2030 agenda
Oloworaran also disclosed that PenCom and the pension industry have approved an independent global benchmark maturity assessment.
The assessment is intended to measure the Nigerian pension industry against international standards and strengthen compliance with global best practices.
The industry is also developing a Pensions 2030 Transformation Agenda, which is expected to set out its long-term direction and the impact it aims to achieve for Nigerians.
The process will involve consultations with industry stakeholders, regulators, development partners and other relevant parties before the formal agenda is finalised.
