By Oluwakemi Kindness
Nigeria’s pension industry is seeking to mobilise $600 million from pension funds for a proposed $750 million infrastructure investment platform aimed at financing energy, transport and digital projects.
Director-General of the National Pension Commission (PenCom) and Chair of the Pension Industry Leadership Council (PILC), Omolola Oloworaran, said the initiative would deploy long-term pension savings for infrastructure development while safeguarding contributors’ retirement funds.
According to a statement on Tuesday Oloworaran describes an agreement with UK-funded development agency FSD Africa as the industry’s first step towards mobilising pension capital for productive investment.
FSD Africa Chief Executive Officer, Mark Napier, said the proposed platform would help address the gap between Africa’s institutional capital and its infrastructure financing needs.
Also, UK Deputy High Commissioner in Lagos, Jonny Baxter, said the partnership reflected the shared ambition of Nigeria and the United Kingdom to attract more domestic capital into the real economy, creating opportunities for jobs and economic growth.
The proposed Nigeria Pension Industry Investment Platform (PIIP) has attracted interest from 19 Nigerian pension funds and is targeting an initial $350 million at its first close in 2027.
Nigerian pension funds are expected to provide $600 million, while development finance institutions will contribute at least $150 million towards the $750 million target.
An initial assessment identified 39 infrastructure projects in Nigeria with potential investment needs of about $20 billion.
At least 60 per cent of the proposed fund’s portfolio will be invested in Nigeria, with the remainder available for selected regional projects.
PILC and FSD Africa signed an agreement on Tuesday under which FSD Africa will provide technical support, help select a fund manager and engage potential investors.
