The Nigerian pension industry has committed N241 billion to a proposed infrastructure investment initiative, with the first tranche expected to be deployed by the second quarter of 2027.
The Director-General of the National Pension Commission, Omolola Oloworaran, disclosed this in Lagos on Thursday while briefing journalists on the outcome of the fourth meeting of the Pension Industry Leadership Council.
Oloworaran said the commitment represented the initial phase of efforts by PenCom, FSD Africa and other partners to mobilise long-term pension capital for infrastructure development.
She said the amount could increase to almost N300 billion when an outstanding commitment from another participant was received.
The PenCom chief stressed, however, that the money had not yet been invested in any infrastructure project.
According to her, the initiative remains at the structuring stage, with the parties yet to conclude the investment framework, sign a memorandum of understanding and appoint a fund manager.
“We have the commitment. 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,” Oloworaran said.
She explained that the first tranche of the committed funds was expected to be deployed from the second quarter of 2027, while development partners could provide additional funding to complement the pension industry’s contribution.
Oloworaran said no specific infrastructure projects or asset classes had been selected for investment, as discussions on the allocation of the funds were still ongoing.
She also clarified that Pension Fund Administrators would participate voluntarily and would be required to make investment decisions in the best interests of pension contributors.
According to her, infrastructure offers pension funds opportunities for long-term returns because of the long-dated nature of such assets, while also providing a potential hedge against inflation.
She described the N241 billion commitment as the starting point of a wider plan to mobilise pension assets for infrastructure financing.
Beyond infrastructure investment, Oloworaran disclosed that PenCom had approved an independent global benchmark maturity assessment for the pension industry.
She said the assessment would measure the Nigerian pension sector against international standards and help identify areas where its operations and practices could be strengthened.
The commission will also hold its Pension Week from October 26 to 30, with details of the programme expected to be announced during another media engagement.
On the proposed Pensions 2030 transformation agenda, Oloworaran said the initiative was still being developed and had not yet reached the implementation stage.
She said the framework was intended to consolidate reforms in the pension industry and provide a strategic roadmap for the sector through 2030.
A strategy session is expected to hold in December, while consultations with regulators, development partners and other stakeholders will take place before the agenda is finalised around December or January.
Oloworaran also gave an update on efforts to resolve outstanding issues surrounding the old Defined Benefit Scheme.
She said PenCom was conducting a one-off enrolment exercise for workers who were in government employment before 2004.
The exercise, according to her, is intended to determine the number of people still covered by the old scheme and establish the financial obligation that will be required from the Federal Government.
She said the exact liability could not yet be determined because the enrolment exercise was still ongoing.
However, she projected that the last beneficiaries of the scheme could leave it between 2035 and 2039.
The PenCom director-general further disclosed plans to expand pension coverage among informal-sector workers through accredited pension agents and targeted awareness and enrolment programmes.
She said the commission was also preparing to introduce an “I Am Alive” verification exercise for retirees receiving programmed withdrawals.
The verification process will initially be available online, while retirees without mobile devices will be able to complete the exercise through their PFAs.
Oloworaran also disclosed that more details on planned reforms in the pension sector would emerge next month when President Bola Tinubu is expected to announce a guaranteed minimum pension.
She said the proposed measure would be the first of its kind in the country and would be accompanied by a healthcare initiative aimed at providing free medical care for vulnerable retirees and low-income earners.
The measures, she said, are part of ongoing efforts to widen pension coverage, improve retirement security and position the pension industry as a source of long-term capital for Nigeria’s economic development.
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