Nigeria and the United Kingdom have signed a memorandum of understanding to create a $750 million infrastructure investment platform that aims to channel Nigerian pension assets into energy, transport and digital projects across Nigeria and selected African markets.
The agreement was signed in Lagos on November 10, 2026, by the Pension Industry Leadership Council (PILC) and FSD Africa, a UK-funded development agency. Nineteen Nigerian pension funds have already shown interest. The platform is designed to mobilise long-term domestic capital for infrastructure while protecting contributors’ retirement savings.
FSD Africa will supply technical advice, help select a fund manager through a competitive process, engage investors and development finance institutions, and support capacity building and regulatory work. The initiative was developed by Nigerian Pension Fund Administrators with backing from the National Pension Commission (PenCom) and FSD Africa.
The fund is targeting a first close of $350 million in 2027 before scaling to the full $750 million. At full size it is expected to draw about $600 million from Nigerian pension funds and at least $150 million from development finance institutions. An early review of Nigeria’s infrastructure pipeline has identified 39 projects that could suit the platform, representing roughly $20 billion in potential funding needs.
At least 60 per cent of the portfolio is to be allocated to Nigerian projects, with the rest available for opportunities elsewhere in the region. Investments will be made in equity and quasi-equity. The structure is expected to include a naira-denominated core fund, a co-investment vehicle for participating pension funds, and a possible parallel foreign-currency vehicle for international investors.
UK Deputy High Commissioner in Lagos Jonny Baxter said the partnership reflected a shared priority of directing more domestic capital, including pension money, into the real economy. “It is great to see Nigeria making concrete progress on its efforts and be a part of those opportunities to turn this ambition into investment, jobs, and economic growth,” he said.
PenCom Director-General and PILC chair Omolola Oloworaran described the platform as timely. “The pension industry holds the largest pool of long-term savings capital in the country, and we are committed to mobilising it to deepen infrastructure development, while safeguarding the retirement savings of contributors. This MoU is the first step we are taking as an industry, and it is just the beginning.”
FSD Africa chief executive Mark Napier noted the long-standing gap between Africa’s institutional capital and its infrastructure needs. “We are keen to work with PenCom and the pension industry in Nigeria to address this and unlock the capital they manage towards Nigeria’s priority infrastructure,” he said.
The initiative is intended to strengthen capital markets, improve connectivity, support business growth and create jobs by linking institutional investors with viable infrastructure projects.
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