The partnership will support the development of a new investment platform, already attracting interest from 19 Nigerian pension funds to finance energy, transport, and digital infrastructure.
Nigeria’s Pension Industry Leadership Council (PILC) and UK-funded specialist development agency FSD Africa have signed an agreement to support the development of a proposed US$750 million infrastructure fund.
The fund aims to bring together capital from Nigerian pension funds and development finance to invest in infrastructure projects in Nigeria and selected markets across the region. The partnership reflects a shared UK-Nigeria ambition to deepen Nigeria’s capital markets, mobilise more domestic investment and channel long-term capital into the real economy.
Under the agreement, FSD Africa will provide the PILC with expert advice and technical support to help set up 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.
Developed by Nigerian Pension Fund Administrators (PFAs), with support from the National Pension Commission (PenCom) and FSD Africa, the initiative has attracted interest from 19 Nigerian pension funds, signalling strong appetite to put more long-term domestic capital to work in infrastructure.
Jonny Baxter, UK Deputy High Commissioner in Lagos, said: “The UK is proud to partner with the Nigeria’s Pension Industry and the pensions regulator Pencom to progress this investment. Both our countries are prioritising tacking 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.”
By bringing together pension funds and development finance, the proposed US$750 million fund aims to provide more long-term financing for infrastructure projects that improve connectivity, help businesses grow and support Nigeria’s wider economic development.
Ms Omolola Oloworaran, Chair Nigeria Pension Industry Leadership Council and Director General National Pension Commission (PenCom) has welcomed the proposed platform as one whose 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.” Noted Ms Olororaran.
Mark Napier, FSD Africa CEO termed the planned new 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.” said Mark.
The proposed platform is targeting an initial capital mobilisation of US$350 million by its first close, expected in 2027, before scaling to US$750 million. At its final target size, PIIP aims to mobilise approximately US$600 million from Nigerian pension funds and at least US$150 million from development finance institutions.
The MoU signing comes amid growing 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 approximately US$20 billion in investment needs.
PIIP aims to help connect these investment opportunities with long-term institutional capital, investing in equity and quasi-equity capital, with at least 60% of its portfolio allocated to projects in Nigeria and the remainder available for selected regional investments.
It is planned that the platform will 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 established to accommodate international investors. This structure is designed to provide institutional investors with access to professionally managed, long-term investment opportunities while helping to finance infrastructure that supports economic growth.
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