Nigeria’s pension industry has committed N241 billion to infrastructure development, with the first tranche of the funds expected to be deployed by the second quarter of 2027.
The Director-General of the National Pension Commission (PenCom), Omolola Oloworaran, disclosed this on Thursday in Lagos while briefing journalists on the outcome of the fourth meeting of the Pension Industry Leadership Council.
Oloworaran said the commitment was part of an initiative being developed by PenCom and FSD Africa to mobilise long-term pension funds for infrastructure financing.
She said the commitment could rise to nearly N300 billion when an outstanding commitment from another participant is received.
However, the PenCom boss stressed that no funds had yet been invested in infrastructure projects, as the investment framework was still being developed.
“We commit. We are working with other partners. We haven’t invested any money just yet. This is just a commitment in terms of what the industry will do,” she said.
According to her, the initiative requires the completion of an investment framework with FSD Africa, the signing of a memorandum of understanding and the appointment of a fund manager before the funds can be deployed.
She said the first tranche was expected to become available for infrastructure investments by the second quarter of 2027, while development partners could provide additional capital.
Oloworaran said specific projects and asset classes had not yet been selected, as discussions on the investment structure were ongoing. She also clarified that participation by Pension Fund Administrators would be voluntary, with PFAs expected to make investment decisions in the best interests of contributors.
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She said infrastructure investments could provide pension funds with long-term investment opportunities and some protection against inflation, describing the N241 billion commitment as the beginning of a broader programme.
Meanwhile, PenCom plans to conduct an independent global benchmark assessment of Nigeria’s pension industry to determine how the sector compares with international standards.
Oloworaran said the assessment would help identify areas for improvement and strengthen practices across the industry.
She also announced that PenCom would hold its Pension Week from October 26 to 30, with details of the programme to be released later.
On the proposed Pensions 2030 agenda, she said the initiative was still at the conceptual stage and would seek to consolidate ongoing reforms while setting a strategic direction for the sector through 2030.
Oloworaran also disclosed that PenCom was conducting a one-off enrolment exercise for workers who were in government service before 2004 under the old Defined Benefit Scheme.
She said the exercise would help determine the number of remaining beneficiaries and the financial obligation that would eventually fall on the Federal Government.
The PenCom chief added that the commission was working to expand pension coverage among informal-sector workers through accredited pension agents and targeted outreach programmes.
She also announced plans to introduce an online “I Am Alive” verification exercise for retirees receiving programmed withdrawals, while those without access to mobile devices would be able to complete the process through their PFAs.
Oloworaran further said additional measures in the pension sector would be unveiled next month, including a proposed guaranteed minimum pension and a healthcare initiative aimed at providing free medical care to vulnerable retirees and low-income earners.
She said the initiatives were part of broader efforts to expand pension coverage, strengthen retirement security and increase the contribution of pension funds to Nigeria’s long-term economic development.
