Nigeria’s pension industry is partnering with UK-funded development agency FSD Africa to establish a proposed $750 million infrastructure investment fund aimed at mobilising domestic pension assets and development finance for projects across Nigeria and selected African markets.
The proposed platform, known as the Pension Industry Infrastructure Platform (PIIP), has attracted interest from 19 Nigerian pension funds and is expected to channel long-term institutional capital into critical sectors, including energy, transport and digital infrastructure.
The partnership was formalised through a memorandum of understanding signed by the Pension Industry Leadership Council (PILC) and FSD Africa in Lagos.
Under the agreement, FSD Africa will provide technical expertise and advisory support to facilitate the establishment of the fund. Its responsibilities will include supporting the selection of a fund manager through a competitive process, engaging prospective investors and development finance institutions (DFIs), building institutional capacity and assisting with 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 address the gap between the country’s substantial pool of pension savings and its infrastructure financing needs.
Omolola Oloworaran, chair of PILC and director-general of PenCom, said the proposed platform would provide an avenue for the pension industry to contribute more directly to infrastructure development while protecting contributors’ retirement savings.
She described the agreement as the first step towards mobilising long-term pension capital for productive investments, adding that the industry remained committed to supporting the country’s infrastructure development.
Jonny Baxter, UK deputy high commissioner in Lagos, said the partnership reflected the shared interest of Nigeria and the UK in attracting more domestic institutional investment into the real economy.
He said the initiative could help translate the ambition of mobilising pension funds into investments capable of supporting job creation and economic growth.
Mark Napier, chief executive officer of FSD Africa, said the proposed fund would address the mismatch between Africa’s available institutional capital and its infrastructure financing requirements.
“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,” he added.
The proposed fund is targeting an initial capital mobilisation of $350 million at its first close, expected in 2027, before expanding to its ultimate target of $750 million.
At full capacity, the platform aims to raise 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 potentially suited to the fund, with estimated investment requirements of about $20 billion.
The platform will invest through equity and quasi-equity instruments, with at least 60 percent of its portfolio earmarked for projects in Nigeria, while the remaining allocation will be available for selected investments across the region.
Its proposed structure includes a naira-denominated core investment fund and a separate co-investment vehicle through which participating pension funds can invest alongside the main fund in selected projects. A parallel foreign currency vehicle may also be established to accommodate international investors.
The structure is intended to give pension funds access to professionally managed, long-term infrastructure investments while providing project developers with alternative sources of financing.
The agreement comes as Nigeria and other African economies face growing demand for long-term funding to expand energy supply, improve transport networks and strengthen digital connectivity.
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