Nigeria’s Pension Industry Leadership Council (PILC) and UK-funded development agency FSD Africa have signed an agreement to develop a proposed $750 million fund for infrastructure projects in Nigeria and selected markets across the region.
FSD Africa said in a statement that the agreement was signed in Lagos on Tuesday.
The proposed platform aims to combine Nigerian pension fund capital with development finance for long-term investment in energy, transport and digital infrastructure.
The initiative has attracted interest from 19 Nigerian pension funds.
FSD Africa said it would provide technical support to help set up the fund, including helping PILC select a fund manager through a competitive process, engage potential investors and development finance institutions, build capacity and support regulatory reforms.
PILC, established in 2025, brings together the National Pension Commission (PenCom), pension operators and other stakeholders. Nigerian Pension Fund Administrators developed the initiative with support from PenCom and FSD Africa.
The proposed platform is targeting an initial $350 million at its first close, expected in 2027, before scaling up to $750 million.
At its full target, it aims to mobilise about $600 million from Nigerian pension funds and at least $150 million from development finance institutions.
According to the statement, 19 funds have expressed interest; it does not say they have committed money.
The platform is expected to invest through equity and quasi-equity, with at least 60 per cent of its portfolio allocated to projects in Nigeria.
The remaining capital would be available for selected regional investments.
An initial assessment identified 39 Nigerian projects with potential relevance to the platform.
The projects represent estimated investment needs of about $20 billion, according to the statement.
The proposed structure would include a naira-denominated core 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 for international investors.
PILC chair and PenCom director-general Omolola Oloworaran said the industry wanted to mobilise long-term savings for infrastructure while protecting contributors’ retirement funds.
“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,” she said.
FSD Africa chief executive Mark Napier said the platform could help address the gap between institutional capital and infrastructure financing needs.
“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,” he said.
He also said FSD Africa is keen to work with PenCom and the pension industry to unlock the capital they manage for Nigeria’s priority infrastructure.
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