Nigeria’s $22 billion pension industry is exploring plans to launch a specialized fund later this year to help Africa’s most populous nation upgrade its deteriorating infrastructure.
National Pension Commission spokesman Ibrahim Buwai stated that the commission is encouraging the establishment of a special purpose vehicle (SPV) to pool resources for viable infrastructure projects. Nigeria is actively seeking investors to modernize its road and rail networks, as well as energy and healthcare systems. Last year, the commission expanded the scope of permissible retirement investments to include private equity and infrastructure funds.
Investment Objectives and Oversight
The proposed fund aims to generate returns that outpace inflation while simultaneously fostering national development, according to Buwai. He noted that the decision to invest will remain with individual pension fund administrators, and the final size of the fund has not yet been determined.
Industry data from the National Pension Commission’s website indicates that pension investments in infrastructure funds grew by 38% year-on-year as of May, reaching 318 billion naira ($230 million).
