The proposed fund, which has attracted interest from 19 Nigerian Pension Fund Administrators (PFAs), is expected to mobilise approximately $600 million from domestic pension funds and at least $150 million from development finance institutions.
The partnership was formalised through a memorandum of understanding signed between the Pension Industry Leadership Council (PILC) and FSD Africa, a UK-funded development agency, according to a statement issued on Tuesday, November 10, 2026.
The UK Deputy High Commissioner in Lagos, Jonny Baxter, said the partnership would help Nigeria mobilise domestic capital, particularly pension savings, to support economic development.
“The UK is proud to partner with the Nigeria’s Pension Industry and the pensions regulator Pencom to progress this investment. Both our countries are prioritising tacking the challenge of attracting more domestic capital, including from pension funds, into the real economy,” Baxter said.
He added that the initiative would help translate investment ambitions into economic opportunities.
“It is great to see Nigeria making concrete progress on its efforts and be a part of those opportunities to turn this ambition into investment, jobs, and economic growth,” he said.
19 Pension Funds Express Interest
Under the agreement, FSD Africa will provide technical assistance and expert advice to support the establishment of the proposed Pension Industry Infrastructure Fund (PIIP).
Its responsibilities will include supporting the competitive selection of a fund manager, engaging prospective investors and development finance institutions, building industry capacity and facilitating necessary regulatory reforms.
The investment platform, developed by Nigerian Pension Fund Administrators with support from the National Pension Commission (PenCom) and FSD Africa, is targeting an initial capital mobilisation of $350 million at its first close in 2027.
The fund will subsequently expand towards its $750 million target.
At full capacity, Nigerian pension funds are expected to provide approximately 80% of the capital, while development finance institutions will contribute at least 20%.
PenCom Director-General and Chair of the Pension Industry Leadership Council, Omolola Oloworaran, said the initiative would create an opportunity to deploy Nigeria’s long-term pension savings into productive infrastructure investments without compromising 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,” she said.
“This MoU is the first step we are taking as an industry, and it is just the beginning.”
Fund Identifies 39 Infrastructure Projects Requiring $20bn
An initial assessment of Nigeria’s infrastructure pipeline has identified 39 projects with potential relevance to the proposed investment platform. According to the statement, the projects represent approximately $20 billion in financing requirements.
The fund will focus on equity and quasi-equity investments, with at least 60% of its portfolio allocated to Nigerian infrastructure projects. The remaining portion may be invested in selected regional markets.
Its proposed structure will comprise a naira-denominated core investment fund and a separate co-investment vehicle, allowing participating pension funds to invest alongside the main fund in selected projects. A parallel foreign-currency investment vehicle may also be established to accommodate international investors.
