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UK-funded FSD Africa and Nigeria’s Pension Industry Leadership Council have signed an agreement to develop a proposed $750 million infrastructure fund targeting energy, transport and digital projects.
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The platform has already attracted interest from 19 Nigerian pension funds, with an initial $350 million expected at first close in 2027.
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The initiative is expected to mobilise about $600 million from Nigerian pension funds and at least $150 million from development finance institutions, with at least 60 percent of investments targeted at Nigeria.
November 10, (THEWILL) – Nigeria’s pension industry is exploring a new investment channel for financing critical infrastructure through a proposed $750 million fund being developed in partnership with UK-funded FSD Africa, with 19 Nigerian pension funds already expressing interest in the initiative.
The proposed fund, which will focus on energy, transport and digital infrastructure, is expected to mobilise long-term domestic capital and attract additional development finance investment to address Nigeria’s infrastructure financing gap.
The initiative follows an agreement signed between FSD Africa and the Pension Industry Leadership Council (PILC) to develop the investment platform, which is expected to have an initial close of $350 million in 2027.
At full capacity, the fund is targeting approximately $600 million in commitments from Nigerian pension funds and at least $150 million from development finance institutions (DFIs).
At least 60 percent of the fund’s investments are expected to be channelled into Nigeria, positioning it as a potential source of long-term financing for infrastructure projects while creating opportunities for institutional investors to participate in the country’s development.
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The involvement of pension funds is particularly significant given their capacity to provide patient capital for projects requiring substantial upfront investment and long repayment periods.
The proposed platform is expected to provide a structured investment vehicle through which pension assets can support commercially viable infrastructure projects, while offering pension funds opportunities to diversify their portfolios beyond conventional investment instruments.
The interest already expressed by 19 pension funds signals potential institutional appetite for the initiative, although the proposed fund must still progress towards its first close and full capital mobilisation.
Janefrances Ebere Chibuzor is a Tourism Writer at THEWILL
