From the Nigeria Magazine Desk
A UK-funded development agency, FSD Africa, has partnered with Nigeria’s Pension Industry Leadership Council (PILC) to develop a proposed $750 million infrastructure investment fund aimed at financing critical projects across Nigeria and selected African markets.
The initiative, known as the Pension Industry Infrastructure Platform (PIIP), is designed to mobilise domestic pension assets and channel long-term investments into infrastructure development.
According to a statement released by the United Kingdom’s Foreign, Commonwealth and Development Office (FCDO), the partnership will provide technical and advisory support towards establishing the proposed platform.
The proposed fund has already attracted interest from 19 Nigerian pension funds, indicating growing interest in using institutional savings to support infrastructure development.
The platform is targeting an initial capital mobilisation of $350 million by its first close, expected in 2027, before expanding to its full target of $750 million. At full capacity, approximately $600 million is expected to come from Nigerian pension funds, while at least $150 million will be sourced from development finance institutions.
An initial assessment has identified 39 infrastructure projects in Nigeria that could benefit from the proposed platform, with estimated investment requirements of about $20 billion.
The fund will focus on equity and quasi-equity investments, with at least 60 per cent of its portfolio allocated to projects within Nigeria. Priority sectors include energy, transportation and digital infrastructure.
Its proposed structure will include a naira-denominated core investment fund and a separate co-investment vehicle. A foreign-currency investment option may also be introduced to accommodate international investors.
Chair of PILC and Director-General of the National Pension Commission (PenCom), Omolola Oloworaran, described the initiative as an important step towards mobilising Nigeria’s long-term pension savings for national development while protecting contributors’ retirement funds.
FSD Africa Chief Executive Officer, Mark Napier, also highlighted the opportunity to address Africa’s infrastructure financing gap by connecting available institutional capital with viable investment opportunities.
The partnership represents a significant step in efforts to strengthen Nigeria’s capital market, attract long-term investments, create employment opportunities and accelerate infrastructure development.
