The Nigerian government and pension industry are moving forward with a $750 million infrastructure fund, designed to leverage pension assets for domestic development projects. Known as the Pension Industry Infrastructure Platform (PIIP), the initiative seeks to secure around $600 million from Nigerian pension funds while attracting at least $150 million from development finance institutions (DFIs).
The fund, developed by Nigerian Pension Fund Administrators (PFAs), with support from the National Pension Commission (PenCom) and FSD Africa, has attracted interest from 19 Nigerian pension funds. FSD Africa will provide technical assistance to the Pension Industry Leadership Council (PILC), including support for selecting a fund manager and engaging potential investors.
Investment Strategy
The fund will invest in infrastructure equity and quasi-equity, with at least 60% of its portfolio allocated to projects in Nigeria. The remaining capital may be invested in selected regional markets. An initial assessment of Nigeria’s infrastructure pipeline identified 39 potential projects representing approximately $20 billion in investment requirements.
The proposed investment structure will include a Naira-denominated core fund and a separate co-investment vehicle, allowing participating pension funds to invest alongside the main fund in selected projects. A parallel foreign-currency vehicle may also be established to accommodate international investors.
Partnership and Goals
Omolola Oloworaran, Chair of PILC and Director General of PenCom, stated that the initiative would provide a way for the pension industry to participate more actively in infrastructure financing while protecting retirement savings. Mark Napier, CEO of FSD Africa, noted that the initiative could help address the gap between the availability of institutional capital and infrastructure financing needs across Africa.
The partnership comes as Nigeria seeks to increase domestic institutional investment in infrastructure and reduce its reliance on public financing. The proposed fund remains in development, with the partners working towards its planned first close in 2027, targeting an initial $350 million.
At its target size, the fund aims to support Nigeria’s infrastructure development, including opportunities in energy, transport, and digital connectivity. With the support of FSD Africa and PILC, the initiative is expected to unlock the capital managed by Nigerian pension funds towards the country’s priority infrastructure.
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