UK Backs Nigeria’s Proposed $750m Pension Infrastructure Fund

The United Kingdom has backed Nigeria’s plan to establish a $750 million infrastructure investment fund designed to channel long-term pension savings and development finance into critical infrastructure projects.

The proposed Pension Industry Infrastructure Platform (PIIP) is being developed by Nigeria’s Pension Industry Leadership Council (PILC), with support from the National Pension Commission (PenCom) and UK-funded development agency FSD Africa.

The partnership was formalised through a memorandum of understanding signed by PILC and FSD Africa in Lagos on Monday, November 9, 2026.

Under the agreement, FSD Africa will provide technical assistance and advisory support to establish the investment platform. Its responsibilities will include supporting the competitive selection of a fund manager, engaging prospective investors and development finance institutions, building institutional capacity and facilitating necessary regulatory reforms.

The initiative has already attracted interest from 19 Nigerian pension funds.

The platform is targeting an initial capital mobilisation of $350 million at its first close in 2027, before expanding to its ultimate target of $750 million. At full capacity, approximately $600 million is expected to come from Nigerian pension funds, while development finance institutions are expected to contribute at least $150 million.

Speaking on the partnership, UK Deputy High Commissioner in Lagos, Jonny Baxter, said the UK was proud to support Nigeria’s pension industry and PenCom in mobilising domestic capital for productive investments.

He said the initiative could help translate investment ambitions into infrastructure development, employment opportunities and economic growth.

PenCom Director-General and PILC Chairperson, Omolola Oloworaran, said the pension industry was committed to deploying long-term savings towards infrastructure development while protecting contributors’ retirement funds.

She described the agreement as an important first step towards expanding the role of pension capital in financing Nigeria’s development.

An initial assessment of Nigeria’s infrastructure pipeline identified 39 projects with potential relevance to the platform, representing approximately $20 billion in financing requirements.

The fund will focus on equity and quasi-equity investments in energy, transport and digital infrastructure. At least 60 per cent of its portfolio is expected to be allocated to Nigerian projects, while the remainder may support selected investments in other regional markets.

Its proposed structure includes a naira-denominated core fund and a separate co-investment vehicle. A foreign-currency investment vehicle may also be established to accommodate international investors.

The initiative is expected to create another channel for financing infrastructure while providing institutional investors with professionally managed long-term investment opportunities.