Nigeria’s Pension Industry Leadership Council (PILC) and UK-funded development agency, FSD Africa, have signed an agreement to support the development of a proposed 750-million-dollar infrastructure investment fund aimed at financing projects in Nigeria and selected African markets.

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‎The proposed Nigeria Infrastructure Investment Platform (PIIP) is expected to mobilise long-term capital from Nigerian pension funds and development finance institutions to support investments in energy, transport and digital infrastructure.

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‎Under the agreement, FSD Africa will provide technical expertise and advisory support to PILC to facilitate the establishment of the fund. This will include selecting a fund manager through a competitive process, engaging potential investors and development finance institutions, building institutional capacity and supporting necessary regulatory reforms.

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‎The initiative, developed by Nigerian Pension Fund Administrators (PFAs) with support from the National Pension Commission (PenCom) and FSD Africa, has already attracted interest from 19 Nigerian pension funds.

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‎Speaking on the partnership, the UK Deputy High Commissioner in Lagos, Jonny Baxter, said the agreement reflects the shared commitment of Nigeria and the United Kingdom to mobilising domestic capital, particularly pension funds, for productive investments that can generate jobs and stimulate economic growth.

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‎Also speaking, the Chair of PILC and Director-General of PenCom, Omolola Oloworaran, described the proposed platform as timely, noting that the pension industry holds the country’s largest pool of long-term savings capital.

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‎She said the industry was committed to mobilising pension assets for infrastructure development while safeguarding contributors’ retirement savings, adding that the memorandum of understanding represents the first step towards achieving the objective.

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‎Similarly, the Chief Executive Officer of FSD Africa, Mark Napier, said the initiative would help address the gap between Africa’s significant institutional capital and its infrastructure financing needs by directing more pension assets towards priority development projects.

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‎The platform is targeting an initial capital mobilisation of 350 million dollars at its first close, expected in 2027, before expanding to its 750-million-dollar target. At full capacity, it aims to attract approximately 600 million dollars from Nigerian pension funds and at least 150 million dollars from development finance institutions.

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‎An initial assessment of Nigeria’s infrastructure pipeline identified 39 projects with potential investment opportunities estimated at 20 billion dollars. The platform plans to invest in equity and quasi-equity instruments, with at least 60 per cent of its portfolio allocated to Nigerian projects and the remainder available for selected investments across the region.

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‎Its proposed structure will include a naira-denominated core fund, a co-investment vehicle and a possible foreign-currency investment vehicle for international investors.