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Pension Industry Commits N241bn to Nigeria’s Infrastructure Financing

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Pension Industry Commits N241bn to Nigeria’s Infrastructure Financing
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Nigeria’s pension industry has committed N241 billion to an infrastructure development fund as part of efforts to channel long-term domestic capital into projects across the country.

The Director-General of the National Pension Commission (PenCom), Omolola Oloworaran, disclosed the commitment in Lagos following a meeting of the Pension Industry Leadership Council. The initiative is being developed through the Pension Industry Infrastructure Consortium, established in collaboration with FSD Africa.

Oloworaran said the commitment could rise to almost N300 billion as additional pledges are received. However, she clarified that the N241 billion has not yet been invested, as the framework for deployment is still being developed.

The industry is expected to finalise arrangements with FSD Africa and appoint a fund manager before investment decisions can begin. The first tranche is targeted for deployment by the second quarter of 2027, while specific infrastructure projects have yet to be selected.

PenCom said infrastructure investments are attractive to pension funds because of their long-term nature and potential to provide returns that can help protect retirement savings against inflation.

The initiative could provide an additional source of long-term financing for Nigeria’s infrastructure needs while giving pension funds access to assets that match the long-term nature of pension savings.

See also  Personal Pension Plan Faces Funding Hurdle as 91% of Accounts Remain Unfunded
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