19 Nigerian Pension Funds Express Interest in Proposed $750m Infrastructure Fund
…UK-backed FSD Africa partners pension industry to mobilise $600m in domestic capital for energy, transport and digital infrastructure
Michael Olugbode in Abuja
Nigeria’s pension industry is seeking to mobilise approximately $600 million from domestic pension funds for a proposed $750 million infrastructure investment platform, which has already attracted interest from 19 Nigerian pension funds.
The initiative, known as the Pension Industry Infrastructure Platform (PIIP), is being developed by the Pension Industry Leadership Council (PILC) in partnership with UK-funded specialist development agency, FSD Africa, to finance infrastructure projects in Nigeria and selected markets across the region.
The partnership was formalised through the signing of an agreement to support the development of the proposed fund.
Under the agreement, FSD Africa will provide PILC with expert advice and technical support, including assistance in selecting a fund manager through a competitive process, engaging potential investors and Development Finance Institutions (DFIs), building capacity and supporting necessary regulatory reforms.
The initiative, developed by Nigerian Pension Fund Administrators (PFAs), with support from the National Pension Commission (PenCom) and FSD Africa, seeks to bring together pension funds and development finance to provide long-term financing for infrastructure projects.
UK Deputy High Commissioner in Lagos, Jonny Baxter, said the partnership reflected the shared ambition of Nigeria and the United Kingdom to deepen Nigeria’s capital markets, mobilise domestic investment and channel long-term capital into the real economy.
He said the UK was proud to partner with Nigeria’s pension industry and PenCom to advance the investment initiative.
“Both our countries are prioritising tackling the challenge of attracting more domestic capital, including from pension funds, into the real economy. It is great to see Nigeria making concrete progress on its efforts and be a part of those opportunities to turn this ambition into investment, jobs, and economic growth,” Baxter said.
Chair of PILC and Director-General of PenCom, Omolola Oloworaran, described the proposed platform as timely, saying the pension industry was committed to mobilising its long-term savings capital for infrastructure development while safeguarding contributors’ retirement savings.
“The pension industry holds the largest pool of long-term savings capital in the country, and we are committed to mobilising it to deepen infrastructure development, while safeguarding the retirement savings of contributors. This MoU is the first step we are taking as an industry, and it is just the beginning,” she said.
Chief Executive Officer of FSD Africa, Mark Napier, said the proposed investment structure held significant promise for Nigeria and Africa.
He noted that the continent had substantial institutional capital but continued to face major infrastructure funding deficits.
“We have observed for several years now the paradox of Africa having significant institutional capital while at the same time facing big infrastructure funding deficits. We are keen to work with PenCom and the pension industry in Nigeria to address this and unlock the capital they manage towards Nigeria’s priority infrastructure,” Napier said.
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 its final target size, PIIP aims to mobilise approximately $600 million from Nigerian pension funds and at least $150 million from development finance institutions.
An initial assessment of Nigeria’s infrastructure pipeline identified 39 projects with potential relevance to the platform, representing approximately $20 billion in investment needs.
The platform will invest in equity and quasi-equity capital, with at least 60 per cent of its portfolio allocated to projects in Nigeria and the remainder available for selected regional investments.
Its proposed structure will comprise a naira-denominated core investment fund and a separate co-investment vehicle, allowing participating pension funds to invest alongside the core fund in selected projects.
A parallel foreign-currency vehicle may also be established to accommodate international investors.
The structure is designed to provide institutional investors with access to professionally managed, long-term investment opportunities while helping to finance infrastructure projects that improve connectivity, support business growth and contribute to Nigeria’s wider economic development.
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