The Pension Industry Leadership Council (PILC) and FSD Africa have signed an agreement to establish a proposed $750 million infrastructure investment fund.
The National Pension Commission (PenCom) disclosed this in a statement issued on Tuesday.
The fund would mobilise long-term capital from Nigerian pension funds and development finance institutions to finance infrastructure projects.
The News Agency of Nigeria (NAN) reports that the projects will be located in Nigeria and selected African markets.
The initiative has attracted interest from 19 Nigerian pension funds, with an initial target of raising $350 million at its first close in 2027.
Known as the Pension Industry Infrastructure Platform (PIIP), the fund targets $600 million from Nigerian pension funds.
It also aims to attract at least $150 million from development finance institutions.
Mr Jonny Baxter, UK Deputy High Commissioner in Lagos, said Britain was proud to partner with Nigeria’s pension industry and PenCom.
“Both our countries are prioritising tackling the challenge of attracting more domestic capital, including from pension funds, into the real economy,” he said.
Baxter said Nigeria was making concrete progress in attracting domestic investment to stimulate economic growth.
He added that the partnership would translate investment ambitions into opportunities, jobs and economic growth.
Ms Omolola Oloworaran, PILC Chair and PenCom Director-General, said the initiative would mobilise pension assets for infrastructure development.
She stressed that contributors’ retirement savings would remain protected.
Oloworaran described the agreement as the industry’s first step towards unlocking long-term pension funds for productive investments.
“The pension industry holds the largest pool of long-term savings capital in the country,” she said.
She reaffirmed the industry’s commitment to deepening infrastructure development while safeguarding contributors’ retirement savings.
“This MoU is the first step we are taking as an industry, and it is just the beginning,” she said.
Under the agreement, FSD Africa will provide technical assistance and expert advice to PILC to facilitate the fund’s establishment.
The support will cover the competitive selection of a fund manager and engagement with potential investors.
It will also include capacity building, engagement with development finance institutions and support for necessary regulatory reforms.
Mr Mark Napier, Chief Executive Officer of FSD Africa, said the proposed fund would address Africa’s infrastructure financing gap.
He reaffirmed the agency’s commitment to working with PenCom and Nigeria’s pension industry to unlock investments for priority infrastructure projects.
An initial assessment identified 39 Nigerian infrastructure projects with potential relevance to the platform.
The projects represent investment needs of approximately $20 billion.
The fund will invest in equity and quasi-equity instruments, with at least 60 per cent allocated to Nigerian projects.
The remaining portfolio will be available for selected investments across other African markets.
Its proposed structure will comprise a naira-denominated core investment fund and a separate co-investment vehicle.
The vehicle will enable 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 proposed investments will particularly target energy, transport and digital connectivity, among other infrastructure needs.
Established in 2025, PILC brings together PenCom, pension operators and other stakeholders to promote Nigeria’s pension industry.
The council seeks to strengthen the industry’s growth and sustainability.
FSD Africa works with governments, regulators and financial institutions across 30 African countries.
Its activities focus on strengthening financial markets and mobilising capital for economic development. (NAN)
