Key Takeaways
- • Nigeria's Pension Industry Leadership Council (PILC) and UK-funded FSD Africa have signed an MoU to support creation of a proposed US$750 million infrastructure fund, called PIIP, to channel pension savings into roads, power and digital networks.
- • The platform has already drawn interest from 19 Nigerian pension funds, according to the National Pencon Commission (PenCom).
- • PIIP targets an initial US$350 million by its first close, expected in 2027, scaling to US$750 million at full size, with approximately US$600 million from Nigerian pension funds and at least US$150 million from development finance institutions.
- • At least 60 per cent of the portfolio will go to Nigerian projects, with the remainder available for selected regional investments, focusing on equity and quasi-equity capital.
- • FSD Africa will provide technical support, including selecting a fund manager through a competitive process, engaging investors and DFIs, building capacity and supporting regulatory reforms.
Summary
Nigeria's Pension Industry Leadership Council (PILC) and FSD Africa, a UK-funded development organisation, have signed an agreement to support the creation of a proposed US$750 million infrastructure fund. The initiative aims to direct more of the country's retirement savings into roads, power and digital networks, and to bring together pension capital and development finance for projects in Nigeria and selected markets across the region. According to the National Pencon Commission (PenCom), the platform has already attracted interest from 19 Nigerian pension funds.
The proposed platform, referred to as PIIP, is designed to be built in stages. It targets an initial capital mobilisation of US$350 million by its first close, expected in 2027, before scaling to US$750 million. At full size, it aims to raise approximately US$600 million from Nigerian pension funds and at least US$150 million from development finance institutions. PIIP will invest in equity and quasi-equity capital, with at least 60 per cent of its portfolio allocated to Nigerian projects. The platform will comprise a Naira-denominated core investment fund and a separate co-investment vehicle that lets participating pension funds invest alongside the core fund, with a parallel foreign-currency vehicle possibly added for international investors.
Under the agreement, FSD Africa will provide expert advice and technical support to establish the fund. This includes helping select a fund manager through a competitive process, engaging potential investors and DFIs, building capacity, and supporting necessary regulatory reforms. The initiative was developed by Nigerian Pension Fund Administrators with support from PenCom and FSD Africa. An initial assessment of Nigeria's infrastructure pipeline identified 39 projects with potential relevance to the platform, representing about US$20 billion in investment needs.
Omolola Oloworaran, Director General of PenCom and Chair of the PILC, said the pension industry holds the largest pool of long-term savings capital in the country and that the MoU is "the first step we are taking as an industry, and it is just the beginning." Mark Napier, CEO of FSD Africa, said the structure has "great promise" and noted the paradox of Africa having significant institutional capital alongside large infrastructure funding deficits. Jonny Baxter, UK Deputy High Commissioner in Lagos, said the partnership supports both countries' priorities of attracting domestic and pension capital into the real economy.
The PILC, established in 2025, is an industry-wide platform bringing together PenCom, pension operators and stakeholders to advance growth and governance of the sector and mobilise pension assets for productive investment.
The proposed platform, referred to as PIIP, is designed to be built in stages. It targets an initial capital mobilisation of US$350 million by its first close, expected in 2027, before scaling to US$750 million. At full size, it aims to raise approximately US$600 million from Nigerian pension funds and at least US$150 million from development finance institutions. PIIP will invest in equity and quasi-equity capital, with at least 60 per cent of its portfolio allocated to Nigerian projects. The platform will comprise a Naira-denominated core investment fund and a separate co-investment vehicle that lets participating pension funds invest alongside the core fund, with a parallel foreign-currency vehicle possibly added for international investors.
Under the agreement, FSD Africa will provide expert advice and technical support to establish the fund. This includes helping select a fund manager through a competitive process, engaging potential investors and DFIs, building capacity, and supporting necessary regulatory reforms. The initiative was developed by Nigerian Pension Fund Administrators with support from PenCom and FSD Africa. An initial assessment of Nigeria's infrastructure pipeline identified 39 projects with potential relevance to the platform, representing about US$20 billion in investment needs.
Omolola Oloworaran, Director General of PenCom and Chair of the PILC, said the pension industry holds the largest pool of long-term savings capital in the country and that the MoU is "the first step we are taking as an industry, and it is just the beginning." Mark Napier, CEO of FSD Africa, said the structure has "great promise" and noted the paradox of Africa having significant institutional capital alongside large infrastructure funding deficits. Jonny Baxter, UK Deputy High Commissioner in Lagos, said the partnership supports both countries' priorities of attracting domestic and pension capital into the real economy.
The PILC, established in 2025, is an industry-wide platform bringing together PenCom, pension operators and stakeholders to advance growth and governance of the sector and mobilise pension assets for productive investment.
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