$750 MILLION WAR CHEST: 19 PENSION FUNDS MOVE TO BUILD NIGERIA’S FUTURE
GREATRIBUNETVNEWS–“Nigeria’s pension industry plans to mobilise $600 million in domestic capital for a new $750 million infrastructure fund that has already drawn interest from 19 Pension Fund Administrators.”
Your Pension Is About To Build Roads, Power And Internet, Not Just Sit In A Bank
THE PLATFORM:
“The proposed Pension Industry Infrastructure Platform (PIIP) is being developed by the Pension Industry Leadership Council (PILC) in partnership with UK-funded development agency, FSD Africa.”
THE DEAL IS SIGNED:
“A partnership agreement to that effect was signed on Tuesday, formalising support for the fund’s development.”
WHAT FSD AFRICA WILL DO:
“Under the agreement, FSD Africa will provide expert advice and technical support to PILC, including help with competitively selecting a fund manager, engaging investors and Development Finance Institutions (DFIs), building capacity and supporting regulatory reforms needed to unlock long-term capital.”
THE GOAL:
“The initiative, driven by PFAs with support from the National Pension Commission (PenCom) and FSD Africa, aims to pool pension funds and development finance to provide long-term financing for infrastructure.”
THE BOTTOM LINE: $600 million of Nigerian pension money. $750 million total fund. 19 PFAs in. Energy, transport, digital. Nigeria is finally using its own money to build its own future.
Speaking at the signing, UK Deputy High Commissioner in Lagos, Jonny Baxter, said the partnership reflected the shared ambition of Nigeria and the UK to deepen capital markets and channel long-term savings into the real economy.
“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, said the platform was timely and demonstrated the industry’s commitment to development while protecting contributors.
“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 structure addresses a long-standing paradox on the continent.
“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 platform targets a first close of $350 million in 2027 before scaling to its final $750 million target. At full size, it aims to mobilise $600 million from Nigerian pension funds and at least $150 million from DFIs.
An initial pipeline assessment identified 39 projects with potential relevance, representing about $20 billion in investment needs.
PIIP will invest in equity and quasi-equity, with at least 60 per cent allocated to Nigeria and the balance for selected regional markets. Its structure will comprise a naira-denominated core fund and a separate co-investment vehicle allowing PFAs to invest alongside the core fund in specific projects.
A parallel foreign-currency vehicle may also be created to accommodate international investors, giving institutions access to professionally managed, long-term infrastructure opportunities that improve connectivity, support business growth and drive economic development.
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