The National Pension Commission (PenCom) is targeting about N300 billion in pension fund commitments for infrastructure projects across Nigeria, with actual investments expected to begin from the second quarter of 2027.
PenCom Director-General Omolola Oloworaran disclosed this while speaking to journalists on the sidelines of the Pension Industry Leaders Council meeting in Lagos.
She said pension fund operators have already committed N241 billion under an infrastructure investment framework developed in collaboration with FSD Africa, with the total expected to approach N300 billion once outstanding commitments are completed.
“As of today, pension funds have committed a total of N241 billion, and we expect that to touch almost N300 billion very soon as soon as we get all the commitments in.”
Oloworaran said the industry was working towards a defined implementation timeline, with physical investments in the selected infrastructure projects expected to commence in the second quarter of 2027.
“We do have a timetable we are working with, and by Q2’2027, the real investments in those infrastructure projects should start taking place.”
She described the initiative as an important development for Nigeria’s pension industry, particularly because infrastructure investments can provide long-term opportunities for pension funds while helping protect contributors’ assets against inflation.
According to the PenCom boss, the move is part of a broader effort by pension fund operators to identify investments capable of generating returns that can keep pace with inflation over the long term.
“This is the very first step we are taking as an industry, and this is just the beginning because this is a sector we are committed to.”
Oloworaran also said mobilising funds from the pension sector could provide additional capital for infrastructure development across the country while creating long-term investment opportunities for pension contributors.
“Mobilising capital within the pension industry deepens infrastructure in the country, and these are long-term investments that provide an inflation hedge for us.”
Beyond infrastructure financing, Oloworaran disclosed that PenCom has approved an independent global benchmark maturity assessment for Nigeria’s pension industry.
The assessment is expected to examine how pension operators measure up against international standards in areas including corporate governance, market compliance and operational practices.
The commission is also working with industry leaders to formalise the Pension Transformation Agenda 2030, known as Pensions 2030.
The initiative is expected to consolidate ongoing reforms within the pension sector and establish strategic priorities for the industry over the coming decade.
The planned infrastructure investment is therefore being positioned as part of a wider transformation of Nigeria’s pension system, with the regulator seeking to expand investment opportunities while strengthening industry standards and long-term returns for pension contributors.
Source: PenCom.
