Pension Industry Commits N241bn to Infrastructure Fund, Targets N300bn
Nigeria’s pension industry has committed N241 billion to an infrastructure development fund, in a move aimed at putting more long-term pension capital to work in projects that could improve infrastructure and support economic development.
The commitment is being made through a special-purpose vehicle being developed by the Pension Industry Infrastructure Consortium in collaboration with FSD Africa.
Director-General of the National Pension Commission, PenCom, Miss Omolola Oloworaran, disclosed this at a press briefing in Lagos.
According to her, the initiative is expected to mobilise more than N300 billion as additional commitments from the pension industry are received.
For Nigerians, the initiative could potentially translate into greater participation of pension funds in financing infrastructure, although specific projects to receive the funds have not yet been selected.
Oloworaran, who is also Chairman of the Pension Industry Leadership Council (PILC), explained that the N241 billion currently represents a commitment by the industry and has not yet been invested.
She said the consortium was established as part of efforts to create long-term investment opportunities for pension funds while helping to address the financing needs of Nigeria’s infrastructure sector.
«“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 added that other arrangements required for the investment are expected to be completed by the second quarter of 2027.
Beyond the pension industry’s own commitments, PenCom is also working with development partners that could potentially match the funds committed by pension managers. This, she explained, could significantly increase the size of the infrastructure fund.
However, Nigerians may have to wait a little longer to know exactly which roads, power projects, housing schemes or other infrastructure initiatives will benefit, as the framework for deploying the funds is still being developed.
Oloworaran said the initiative represents the first major step by the pension industry towards mobilising pension capital for infrastructure financing.
«“This is the first step we are taking as an industry, and this is just the beginning,” she said.»
According to the PenCom DG, infrastructure assets could offer pension funds long-term investment opportunities while providing some protection against inflation.
Meanwhile, PenCom and the pension industry have approved an independent global benchmark maturity assessment to measure Nigeria’s pension industry against international standards and strengthen compliance with global best practices.
Oloworaran also disclosed that the industry is developing a Pensions 2030 Transformation Agenda, which is expected to provide a long-term direction for the sector and define the impact it hopes to achieve for Nigerians.
PILC is a strategic collaborative platform bringing together PenCom and key leaders in Nigeria’s pension industry to address issues affecting the growth, development and sustainability of the country’s pension system.
By Ebere Obike
