The National Pension Commission (PenCom) said the pension industry, through a special-purpose vehicle being developed with FSD Africa, has committed N241 billion to an infrastructure development fund as part of efforts to channel long-term pension capital into Nigeria’s infrastructure sector.
The Pension Industry Infrastructure Consortium, established by the Pension Industry Leadership Council (PILC) in collaboration with FSD Africa, is expected to mobilise more than N300 billion as additional commitments come in, Omolola Oloworaran, chairman of the PILC/director-general of PenCom, disclosed at a press briefing in Lagos.
She said the initiative represents the industry’s first major step towards mobilising pension funds for infrastructure development, adding that the funds are expected to provide long-term investment opportunities for pension funds while supporting infrastructure financing.
‘The industry has committed a total of N241 billion, and we expect that to rise to over N300 billion as we receive all the commitments,’ Oloworaran said.
She, however, clarified that the funds have not yet been invested, describing the N241 billion as a commitment by the industry towards the infrastructure initiative, noting that other arrangements towards the investment would be completed by second quarter of 2027.
The commission said the framework for the initiative is being developed, while an agreement with FSD Africa and the appointment of a fund manager are among the steps required before investment decisions can be made.
Oloworaran said the industry is also working with other development partners that could potentially match the capital committed by pension funds, creating room for the infrastructure fund to grow beyond its current target.
According to her, specific infrastructure assets or projects to receive the funds have not yet been determined, as the industry is still working through the framework and other requirements for deployment.
She said the initiative is intended to deepen the role of pension funds in financing infrastructure, particularly because infrastructure assets can provide long-term investment opportunities and some protection against inflation.
‘This is the first step we are taking as an industry, and this is just the beginning,’ she said.
The move could provide an additional channel for Nigeria’s pension industry to participate in infrastructure financing, while giving pension funds access to long-duration assets that match the long-term nature of retirement savings.
Oloworaran also disclosed that PenCom and the pension industry have approved an independent global benchmark maturity assessment aimed at measuring the industry against international standards and strengthening adherence to global best practices.
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She said the industry is also developing a Pensions 2030 Transformation Agenda designed to define its long-term direction and the impact it seeks to achieve for Nigerians.
The initiative, she said, would involve engagements with industry stakeholders, regulators, partners and other relevant parties before a formal agenda is produced.