UK-funded FSD Africa partners with Nigeria’s pension industry on proposed $750mn infrastructure fund

Lagos: Nigeria’s Pension Industry Leadership Council (PILC) and UK-funded specialist development agency FSD Africa have signed an agreement to support the development of a proposed $750 million infrastructure fund.

The fund aims to bring together capital from Nigerian pension funds and development finance to invest in infrastructure projects in Nigeria and selected markets across the region.

Under the agreement, FSD Africa will provide the PILC with expert advice and technical support to help set up the fund, including selecting a fund manager through a competitive process, engaging potential investors and Development Finance Institutions (DFIs), building capacity, and supporting necessary regulatory reforms.

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

Chair of the PILC and Director General of PenCom, Ms Omolola Oloworaran, said the pension industry holds the largest pool of long-term savings capital in the country.

“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.”

UK Deputy High Commissioner in Lagos, Jonny Baxter, said both countries are prioritising the challenge of attracting more domestic capital into the real economy.

“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.

FSD Africa CEO, Mark Napier, said the agency has observed for several years the paradox of Africa having significant institutional capital while facing big infrastructure funding deficits.

“We are keen to work with PenCom and the pension industry in Nigeria to address this,” he said.

The proposed platform is targeting US$350 million by its first close, expected in 2027, before scaling to US$750 million.

An initial assessment identified 39 infrastructure projects with potential relevance to the platform, representing approximately US$20 billion in investment needs, with at least 60 per cent of its portfolio allocated to projects in Nigeria.