Get Guardian on GoogleNigeria’s pension industry is seeking to mobilise up to $750 million for infrastructure development through a proposed investment fund that has already attracted interest from 19 Nigerian pension funds.
The initiative, being developed by the Pension Industry Leadership Council (PILC), in partnership with UK-funded development agency, FSD Africa, is expected to channel long-term pension assets and development finance into critical sectors, including energy, transportation and digital infrastructure.
The proposed Nigeria Infrastructure Investment Platform (PIIP) is targeting an initial capital mobilisation of $350 million at its first close in 2027, before scaling up to $750 million.
Under the proposed structure, Nigerian pension funds are expected to contribute approximately $600 million, while Development Finance Institutions (DFIs) will provide at least $150 million.
The development follows the signing of a Memorandum of Understanding (MoU) between PILC and FSD Africa in Lagos yesterday, marking a step towards mobilising domestic institutional capital for infrastructure financing and strengthening Nigeria’s capital market.
Under the agreement, FSD Africa will provide technical assistance and expert advisory support to PILC in establishing the fund.
This will include the selection of a fund manager through a competitive process, engagement with prospective investors and DFIs, capacity building and support for necessary regulatory reforms.
The initiative is being developed by Nigerian Pension Fund Administrators (PFAs), with support from the National Pension Commission (PenCom) and FSD Africa.
Speaking on the development, Chair of PILC and Director General of PenCom, Omolola Oloworaran, said the proposed investment platform was timely, given the country’s infrastructure financing requirements and the need to deploy pension assets productively.
Also speaking, Chief Executive Officer of FSD Africa, Mark Napier, said the proposed structure would help address the contradiction between the availability of institutional capital in Africa and the continent’s huge infrastructure financing gap.
With 19 pension funds already expressing interest, the proposed platform could provide a significant avenue for expanding the role of pension assets in financing productive sectors of the economy, subject to the necessary regulatory approvals and successful fund establishment.
