Nigeria’s Pension Industry, FSD Africa Sign Deal On $750m Infrastructure Fund
By Sunday Etuka
Nigeria’s Pension Industry Leadership Council (PILC) and UK-funded FSD Africa have signed an agreement to support the creation of a proposed US$750 million infrastructure fund, a move aimed at directing more of the country’s retirement savings into roads, power and digital networks.
The National Pencon Commission (PenCom), in a statement on Tuesday, disclosed that the platform has already drawn interest from 19 Nigerian pension funds.
It aims to bring together pension capital and development finance to invest in infrastructure projects in Nigeria and selected markets across the region.
The partnership reflects a shared UK and Nigeria ambition to deepen Nigeria’s capital markets, mobilise more domestic investment and direct long-term capital into the real economy.
Under the agreement, FSD Africa will provide the PILC with expert advice and technical support to establish 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.
The initiative was developed by Nigerian Pension Fund Administrators (PFAs), with support from the National Pension Commission (PenCom) and FSD Africa.
The Chair of the PILC and Director General of PenCom, Ms Omolola Oloworaran, welcomed the platform, saying its 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,” she said.
Jonny Baxter, UK Deputy High Commissioner in Lagos, said: “The UK is proud to partner with Nigeria’s pension industry and the pensions regulator, PenCom, to progress this investment. 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.”
The Chief Executive Officer of FSD Africa, Mark Napier, described the planned 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,” he said.
By combining pension funds and development finance, the proposed fund aims to provide more long-term financing for infrastructure that improves connectivity, helps businesses grow and supports Nigeria’s wider economic development.
The proposed platform, referred to as PIIP, targets an initial capital mobilisation of US350 million by its first close,expected in 2027, before scaling to US750 million. At full size, it aims to raise approximately US600 million from Nigerian pension funds and at least US150 million from development finance institutions.
The signing comes amid rising 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 about US$20 billion in investment needs.
PIIP will invest in equity and quasi-equity capital, with at least 60 per cent of its portfolio allocated to projects in Nigeria and the remainder available for selected regional investments.
The platform is planned to 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 set up to accommodate international investors.
The structure is designed to give institutional investors access to professionally managed, long-term investment opportunities while helping to finance infrastructure that supports economic growth.
Established in 2025, the PILC is a strategic, industry-wide platform that brings together 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, it seeks to position the pension sector as a key driver of financial inclusion and national economic development.
