Key Takeaways
- • Nigeria's Pension Industry Leadership Council (PILC) and UK-funded agency FSD Africa signed an agreement in Lagos on November 10, 2026 to establish a proposed $750 million pension-backed infrastructure investment platform, according to a PenCom statement reported by LEADERSHIP Newspapers.
- • The fund targets an initial $350 million at its first close, expected in 2027, with ultimate capacity of $750 million, including approximately $600 million from Nigerian pension funds and at least $150 million from development finance institutions.
- • At least 60 per cent of the portfolio will be allocated to Nigerian projects, with equity and quasi-equity investments targeted at energy, transportation and digital infrastructure.
- • An initial pipeline assessment identified 39 Nigerian projects with roughly $20 billion in funding requirements.
- • The agreement is a preparatory MoU: FSD Africa will advise on selecting a fund manager through a competitive process, engaging investors and DFIs, capacity building and regulatory reform.
Summary
Nigeria and the United Kingdom have signed an agreement for a proposed $750 million infrastructure investment fund designed to mobilise pension assets for development projects in Nigeria and other selected African markets. According to a statement from the National Pension Commission (PenCom), the agreement was signed in Lagos on November 10, 2026, by the Pension Industry Leadership Council (PILC) and FSD Africa, a UK-funded specialist development agency. The initiative was developed by Nigerian Pension Fund Administrators (PFAs) with support from PenCom and FSD Africa, and has already attracted interest from 19 Nigerian pension funds.
Under the agreement, FSD Africa will provide technical expertise and advisory support toward establishing the platform. Its responsibilities include selecting a fund manager through a competitive process, engaging prospective investors and development finance institutions, building capacity, and supporting necessary regulatory reforms. The fund is targeting an initial $350 million at its first close, expected in 2027, before expanding to its $750 million ultimate target. At full capacity it is expected to draw approximately $600 million from Nigerian pension funds and at least $150 million from development finance institutions.
The proposed vehicle will invest in equity and quasi-equity instruments, with at least 60 per cent of its portfolio allocated to Nigerian projects and the remainder available for selected opportunities across the region. The structure is expected to include a naira-denominated core fund, a separate co-investment vehicle allowing participating pension funds to invest alongside the main fund, and a possible parallel foreign-currency vehicle for international investors. An initial assessment identified 39 projects with potential relevance, representing approximately $20 billion in funding requirements, across energy, transportation and digital infrastructure.
PenCom Director-General Omolola Oloworaran, who also chairs PILC, described the platform as timely and said the pension industry would deploy its long-term savings toward national development while safeguarding contributors' retirement funds, calling the MoU "the first step" for the industry. FSD Africa CEO Mark Napier said the initiative addresses the gap between Africa's substantial institutional capital and its infrastructure funding deficits. UK Deputy High Commissioner in Lagos Jonny Baxter said the partnership reflected shared commitment to mobilising domestic capital, including pension funds, into the real economy.
Under the agreement, FSD Africa will provide technical expertise and advisory support toward establishing the platform. Its responsibilities include selecting a fund manager through a competitive process, engaging prospective investors and development finance institutions, building capacity, and supporting necessary regulatory reforms. The fund is targeting an initial $350 million at its first close, expected in 2027, before expanding to its $750 million ultimate target. At full capacity it is expected to draw approximately $600 million from Nigerian pension funds and at least $150 million from development finance institutions.
The proposed vehicle will invest in equity and quasi-equity instruments, with at least 60 per cent of its portfolio allocated to Nigerian projects and the remainder available for selected opportunities across the region. The structure is expected to include a naira-denominated core fund, a separate co-investment vehicle allowing participating pension funds to invest alongside the main fund, and a possible parallel foreign-currency vehicle for international investors. An initial assessment identified 39 projects with potential relevance, representing approximately $20 billion in funding requirements, across energy, transportation and digital infrastructure.
PenCom Director-General Omolola Oloworaran, who also chairs PILC, described the platform as timely and said the pension industry would deploy its long-term savings toward national development while safeguarding contributors' retirement funds, calling the MoU "the first step" for the industry. FSD Africa CEO Mark Napier said the initiative addresses the gap between Africa's substantial institutional capital and its infrastructure funding deficits. UK Deputy High Commissioner in Lagos Jonny Baxter said the partnership reflected shared commitment to mobilising domestic capital, including pension funds, into the real economy.
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