Key Takeaways
- • Nigeria's Pension Industry Leadership Council (PILC) and UK-funded FSD Africa have signed an agreement to support development of a proposed $750 million infrastructure fund (PIIP), according to a statement released by the UK Embassy in Abuja.
- • The platform targets an initial $350 million by its first close, expected in 2027, scaling to $750 million, with about $600 million sought from Nigerian pension funds and at least $150 million from development finance institutions (DFIs).
- • The fund has already drawn interest from 19 Nigerian pension funds and will invest in equity and quasi-equity, with at least 60% of its portfolio in Nigeria, focused on energy, transport and digital connectivity.
- • An initial assessment identified 39 infrastructure projects with about $20 billion in investment needs relevant to the platform.
- • FSD Africa will advise on fund setup, including selecting a fund manager through a competitive process, engaging investors and DFIs, and supporting regulatory reforms.
Summary
Nigeria's Pension Industry Leadership Council (PILC) and the UK-funded development agency FSD Africa have signed an agreement to support the development of a proposed $750 million infrastructure fund, according to a statement made available to diplomatic correspondents in Abuja by the UK Embassy's Senior Press and Public Affairs Officer, Ndidiamaka Eze. The initiative was developed by Nigerian Pension Fund Administrators (PFAs), with support from the National Pension Commission (PenCom) and FSD Africa, and has already attracted interest from 19 Nigerian pension funds.
The platform, referred to as PIIP, will pool capital from pension funds and development finance to invest in infrastructure in Nigeria and selected regional markets, particularly energy, transport and digital connectivity. It targets an initial $350 million by its first close, expected in 2027, before scaling to $750 million. At full size, it aims to raise about $600 million from Nigerian pension funds and at least $150 million from DFIs. The platform will invest in equity and quasi-equity, with at least 60% of its portfolio allocated to Nigerian projects and the remainder available for selected regional investments. An initial assessment of Nigeria's infrastructure pipeline identified 39 projects with potential relevance, representing about $20 billion in investment needs.
The structure is planned to comprise a Naira-denominated core fund and a separate co-investment vehicle that allows participating pension funds to invest alongside the core fund in selected projects. A parallel foreign-currency vehicle may also be established for international investors.
Under the agreement, FSD Africa will provide the PILC with expert advice and technical support, including helping select a fund manager through a competitive process, engaging potential investors and DFIs, building capacity and supporting necessary regulatory reforms.
Omolola Oloworaran, Chair of the PILC and Director General of PenCom, welcomed the proposal, stating that 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." UK Deputy High Commissioner in Lagos Jonny Baxter said both countries were prioritising the attraction of domestic capital, including from pension funds, into the real economy. FSD Africa CEO Mark Napier said the continent faces a paradox of significant institutional capital alongside large infrastructure funding deficits. The PILC, established in 2025, brings together PenCom, pension operators and other stakeholders; FSD Africa works with governments, regulators and financial institutions across 30 countries.
The platform, referred to as PIIP, will pool capital from pension funds and development finance to invest in infrastructure in Nigeria and selected regional markets, particularly energy, transport and digital connectivity. It targets an initial $350 million by its first close, expected in 2027, before scaling to $750 million. At full size, it aims to raise about $600 million from Nigerian pension funds and at least $150 million from DFIs. The platform will invest in equity and quasi-equity, with at least 60% of its portfolio allocated to Nigerian projects and the remainder available for selected regional investments. An initial assessment of Nigeria's infrastructure pipeline identified 39 projects with potential relevance, representing about $20 billion in investment needs.
The structure is planned to comprise a Naira-denominated core fund and a separate co-investment vehicle that allows participating pension funds to invest alongside the core fund in selected projects. A parallel foreign-currency vehicle may also be established for international investors.
Under the agreement, FSD Africa will provide the PILC with expert advice and technical support, including helping select a fund manager through a competitive process, engaging potential investors and DFIs, building capacity and supporting necessary regulatory reforms.
Omolola Oloworaran, Chair of the PILC and Director General of PenCom, welcomed the proposal, stating that 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." UK Deputy High Commissioner in Lagos Jonny Baxter said both countries were prioritising the attraction of domestic capital, including from pension funds, into the real economy. FSD Africa CEO Mark Napier said the continent faces a paradox of significant institutional capital alongside large infrastructure funding deficits. The PILC, established in 2025, brings together PenCom, pension operators and other stakeholders; FSD Africa works with governments, regulators and financial institutions across 30 countries.
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