UK and Nigeria seal a $750m infrastructure deal as pension funds prepare to unlock billions

Photo: PenCom DG Omolola Oloworaran · Source: Punch (Oct 2024 file photo)

The agreement was signed in Lagos on Monday and disclosed by PenCom — but the $750m is a target, not money raised.

Nigeria and the United Kingdom have signed an agreement for a proposed $750 million infrastructure investment fund, aimed at mobilising billions of dollars in pension assets to finance development projects across Nigeria and other selected African markets.

The agreement was signed in Lagos on Monday 10 Nov by Nigeria’s Pension Industry Leadership Council (PILC) and UK-funded development agency FSD Africa, and disclosed by the National Pension Commission (PenCom). The initiative has attracted interest from 19 Nigerian pension funds.

It targets an initial capital mobilisation of $350 million at its first close, expected in 2027, before expanding to the $750 million target. At full capacity, the fund is expected to attract about $600 million from Nigerian pension funds and at least $150 million from development finance institutions.

The fund will channel long-term domestic and international investment into energy, transportation and digital infrastructure. An initial assessment identified 39 projects with potential relevance to the platform, representing about $20 billion in funding requirements.

The $750 million is a target for the fund, not money already raised; the $350 million first close is expected in 2027, not completed; and the 39 projects were identified as potentially relevant, not selected. Several outlets have now reported the deal, but all cite the same PenCom statement — the primary source is the commission’s own announcement. The platform, called the Nigeria Infrastructure Investment Platform (PIIP), will focus on equity and quasi-equity investments, with at least 60 per cent of its portfolio in Nigerian projects.

UK Deputy High Commissioner in Lagos, Jonny Baxter, said the partnership reflected a shared commitment to mobilising domestic capital into the real economy. PenCom Director-General Omolola Oloworaran, who chairs the PILC, said the pension industry holds the largest pool of long-term savings in the country and is committed to deploying it for infrastructure while safeguarding contributors' retirement funds. FSD Africa chief executive Mark Napier said the initiative would address the paradox of Africa holding large pools of institutional capital while still facing big gaps in infrastructure funding.

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