Nigeria’s pension industry is targeting N300 billion for an infrastructure development fund, with N241 billion expected to be committed by the industry, the National Pension Commission (PenCom) said on Thursday.
Omolola Oloworaran, PenCom director-general and chairman of the Pension Industry Leadership Council (PILC), disclosed this during a press briefing in Lagos.
She said the fund is being established through a special purpose vehicle by PILC in collaboration with FSD Africa.
According to Oloworaran, the appointment of a fund manager and the framework for implementing the fund are expected to be completed by the second quarter of 2027.
“The target of the infrastructure fund is N300 billion in this phase,” she said.
The proposed N241 billion commitment represents about 80 per cent of the fund’s N300 billion target for the current phase.
The initiative is designed to mobilise long-term capital from the pension industry for infrastructure development.
Nigeria has continued to face a significant infrastructure financing gap, increasing the need for alternative sources of long-term funding for infrastructure projects.
Pension assets, because of their long-term investment horizon, have increasingly been considered a potential source of funding for infrastructure and other productive investments.
However, investments by pension funds remain subject to regulatory requirements, investment limits and risk considerations set by PenCom.
The infrastructure fund is expected to provide a structured vehicle for pension funds to participate in infrastructure financing once the implementation framework and fund management arrangements are finalised.