BY NKECHI NAECHE-ESEZOBOR—Nigeria’s Pension Industry Leadership Council
(PILC) and UK-funded specialist development agency FSD Africa have signed an
agreement to support the development of a proposed US$750 million infrastructure fund.
The fund aims to bring together capital from Nigerian pension funds and development
finance to invest in infrastructure projects in Nigeria and selected markets across the
region.
The partnership reflects a shared UK-Nigeria ambition to deepen Nigeria’s capital
markets, mobilise more domestic investment and channel long-term capital into the real
economy.
Under the agreement, FSD Africa will provide the PILC with expert advice and technical
support to help set up the fund. This will include helping to select a fund manager through
a competitive process, engaging potential investors and Development Finance
Institutions (DFIs), building capacity, and supporting necessary regulatory reforms.
Developed by Nigerian Pension Fund Administrators (PFAs), with support from the
National Pension Commission (PenCom) and FSD Africa, the initiative has attracted
interest from 19 Nigerian pension funds, signalling strong appetite to put more long-term
domestic capital to work in infrastructure.
Jonny Baxter, UK Deputy High Commissioner in Lagos, said: “The UK is proud to partner with the Nigeria’s Pension Industry and the pensions
regulator Pencom to progress this investment. Both our countries are prioritising tacking 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.”
By bringing together pension funds and development finance, the proposed US$750
million fund aims to provide more long-term financing for infrastructure projects that
improve connectivity, help businesses grow and support Nigeria’s wider economic development.
Ms Omolola Oloworaran, Chair PILC and
Director General National Pension Commission (PenCom) has welcomed the proposed platform as one whose timing and ambition could not be more ideal.
“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.” Noted Ms Olororaran.
Mark Napier, FSD Africa CEO termed the planned new investment structure as one with
great promise for Nigeria and Africa.
“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.” said Mark.
The proposed platform is targeting an initial capital mobilisation of US$350 million by its
first close, expected in 2027, before scaling to US$750 million. At its final target size, PIIP
aims to mobilise approximately US$600 million from Nigerian pension funds and at least
US$150 million from development finance institutions.
The MoU signing comes amid growing demand for infrastructure investment across
Nigeria and the wider region, particularly in energy, transport and digital connectivity. An
initial assessment of Nigeria’s infrastructure pipeline identified 39 projects with potential
relevance to the platform, representing approximately US$20 billion in investment needs.
PIIP aims to help connect these investment opportunities with long-term institutional
capital, investing in equity and quasi-equity capital, with at least 60% of its portfolio
allocated to projects in Nigeria and the remainder available for selected regional
investments.
It is planned that the platform 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.
This structure is designed to provide institutional investors with access to professionally managed, long-term
investment opportunities while helping to finance infrastructure that supports economic
growth.
About Pension Industry Leadership Council (PILC):
PILC was established in 2025, the
Pension Industry Leadership Council (PILC) is a strategic, industry-wide platform bringing together the National Pension Commission (PenCom), pension operators and key stakeholders to advance the growth, sustainability and transformation of
Nigeria’s pension industry. The Council promotes collective leadership, policy
coordination and strategic partnerships aimed at expanding pension coverage, strengthening governance, mobilising pension assets for productive investment and enhancing retirement security. Through coordinated industry initiatives, PILC seeks to position the pension sector as a key driver of financial inclusion and national economic development.
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