Key Takeaways
- • The Pension Industry Leadership Council (PILC) and UK-funded FSD Africa signed an MoU to support development of a proposed US$750 million infrastructure fund, the Pension Industry Infrastructure Platform (PIIP), which would pool capital from Nigerian pension funds and development finance.
- • The platform targets an initial US$350 million at its first close, expected in 2027, before scaling to US$750 million, with roughly US$600 million from Nigerian pension funds and at least US$150 million from development finance institutions at full size.
- • Interest has come from 19 Nigerian pension funds, and an initial assessment identified 39 infrastructure projects with about US$20 billion in investment needs.
- • At least 60% of the portfolio will go to Nigerian projects, with the remainder available for selected regional investments, focused on equity and quasi-equity in energy, transport and digital connectivity.
- • FSD Africa will advise on selecting a fund manager through a competitive process, engaging investors and DFIs, building capacity and supporting regulatory reform.
Summary
Nigeria's Pension Industry Leadership Council (PILC) and UK-funded specialist development agency FSD Africa have signed a memorandum of understanding to support the development of a proposed US$750 million infrastructure fund, according to the source report. The fund aims to combine capital from Nigerian pension funds with development finance to invest in infrastructure in Nigeria and selected markets across the region. The partnership reflects a shared UK-Nigeria ambition to deepen Nigeria's capital markets, mobilise more domestic investment and channel long-term capital into the real economy.
Under the agreement, FSD Africa will provide expert advice and technical support on setting up the vehicle. This includes helping select a fund manager through a competitive process, engaging potential investors and Development Finance Institutions (DFIs), building capacity, and supporting necessary regulatory reforms. The initiative was developed by Nigerian Pension Fund Administrators (PFAs), with support from the National Pension Commission (PenCom) and FSD Africa, and has attracted interest from 19 Nigerian pension funds.
The platform is targeting an initial capital mobilisation of US$350 million by its first close, expected in 2027, before scaling to US$750 million. At full target size, it aims to mobilise approximately US$600 million from Nigerian pension funds and at least US$150 million from development finance institutions. The platform, referred to as PIIP, will invest in equity and quasi-equity capital, with at least 60% of its portfolio allocated to Nigerian projects and the remainder available for selected regional investments.
The structure will comprise a Naira-denominated core investment fund and a separate co-investment vehicle, allowing participating pension funds to invest alongside the core fund in selected projects. A parallel foreign-currency vehicle may also be established to accommodate international investors. An initial assessment of Nigeria's infrastructure pipeline identified 39 projects with potential relevance to the platform, representing approximately US$20 billion in investment needs, with demand concentrated in energy, transport and digital connectivity.
UK Deputy High Commissioner in Lagos Jonny Baxter said the UK was proud to partner with the pension industry and PenCom on the investment. Omolola Oloworaran, chair of PILC and director general of PenCom, said the pension industry holds the largest pool of long-term savings in the country and is committed to mobilising it for infrastructure while safeguarding contributors' retirement savings, calling the MoU "the first step" for the industry. Mark Napier, FSD Africa CEO, said Africa has significant institutional capital alongside large infrastructure funding deficits and that the agency looks forward to working with PenCom to unlock that capital for priority projects.
Under the agreement, FSD Africa will provide expert advice and technical support on setting up the vehicle. This includes helping select a fund manager through a competitive process, engaging potential investors and Development Finance Institutions (DFIs), building capacity, and supporting necessary regulatory reforms. The initiative was developed by Nigerian Pension Fund Administrators (PFAs), with support from the National Pension Commission (PenCom) and FSD Africa, and has attracted interest from 19 Nigerian pension funds.
The platform is targeting an initial capital mobilisation of US$350 million by its first close, expected in 2027, before scaling to US$750 million. At full target size, it aims to mobilise approximately US$600 million from Nigerian pension funds and at least US$150 million from development finance institutions. The platform, referred to as PIIP, will invest in equity and quasi-equity capital, with at least 60% of its portfolio allocated to Nigerian projects and the remainder available for selected regional investments.
The structure will comprise a Naira-denominated core investment fund and a separate co-investment vehicle, allowing participating pension funds to invest alongside the core fund in selected projects. A parallel foreign-currency vehicle may also be established to accommodate international investors. An initial assessment of Nigeria's infrastructure pipeline identified 39 projects with potential relevance to the platform, representing approximately US$20 billion in investment needs, with demand concentrated in energy, transport and digital connectivity.
UK Deputy High Commissioner in Lagos Jonny Baxter said the UK was proud to partner with the pension industry and PenCom on the investment. Omolola Oloworaran, chair of PILC and director general of PenCom, said the pension industry holds the largest pool of long-term savings in the country and is committed to mobilising it for infrastructure while safeguarding contributors' retirement savings, calling the MoU "the first step" for the industry. Mark Napier, FSD Africa CEO, said Africa has significant institutional capital alongside large infrastructure funding deficits and that the agency looks forward to working with PenCom to unlock that capital for priority projects.
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