Nigeria’s pension industry and UK-funded development agency FSD Africa have signed an agreement to support the development of a proposed US$750 million infrastructure investment platform aimed at financing projects in Nigeria and selected regional markets.
The agreement was signed between the Pension Industry Leadership Council (PILC) and FSD Africa. The proposed fund is intended to combine capital from Nigerian pension funds and development finance institutions for investments in energy, transport and digital infrastructure.
According to the parties, 19 Nigerian pension funds have already expressed interest in the initiative, which was developed by Pension Fund Administrators with support from the National Pension Commission (PenCom) and FSD Africa.
Under the arrangement, FSD Africa will provide technical assistance for the establishment of the platform, including support for selecting a fund manager, engaging prospective investors and development finance institutions, strengthening capacity and assisting with regulatory requirements.
The proposed platform aims to mobilise an initial US$350 million at its first close, expected in 2027, before expanding to US$750 million. At full scale, the initiative is targeting approximately US$600 million from Nigerian pension funds and at least US$150 million from development finance institutions.
PILC Chair and PenCom Director-General Omolola Oloworaran said the initiative would help channel the country’s long-term savings into infrastructure while protecting contributors’ retirement funds.
FSD Africa Chief Executive Mark Napier said the platform could help address the gap between available institutional capital and infrastructure financing needs in Nigeria and across Africa.
The organisers said an initial assessment identified 39 infrastructure projects with potential relevance to the platform, representing an estimated US$20 billion in investment requirements.
The proposed investment structure would allocate at least 60% of its portfolio to projects in Nigeria, with the balance available for selected regional investments.
It is expected to include a naira-denominated core fund, a co-investment vehicle for participating pension funds and a possible foreign-currency vehicle for international investors.
The initiative forms part of broader efforts to increase the role of domestic institutional capital in financing infrastructure and supporting economic growth.
