The Director-General of the National Pension Commission (PenCom), Omolola Oloworaran, disclosed this on Thursday in Lagos at a press briefing on the outcome of the Fourth Meeting of the Pension Industry Leadership Council (PILC).
Oloworaran described the commitment as an important first step in the industry’s efforts to channel Nigeria’s long-term domestic capital into infrastructure development.
“As part of that initiative, pension funds as of today committed a total of 241 billion Naira and we expect that to touch almost 300 billion very soon, as soon as we get all the commitments in,” she said.
The initiative is being developed through the Pension Industry Infrastructure Consortium, which was established in collaboration with FSD Africa to create a structured mechanism for mobilising pension assets for infrastructure development.
According to the PenCom boss, the commission has set a timeline for the initiative, with the first deployment of funds targeted for the second quarter of 2027.
“This is just the first step we are taking as an industry, and this is just the beginning, because this is a sector we are committed to,” she said.
Oloworaran, however, clarified that the N241 billion represents commitments from pension funds and should not be interpreted as money that has already been invested in infrastructure projects.
She said the process remained at the mobilisation and structuring stage, with discussions continuing with development partners that could potentially match the amount committed by the pension industry.
“We haven’t invested any money just yet. This is just a commitment in terms of what the industry will do,” she said.
The PenCom DG also disclosed that specific infrastructure projects had not yet been selected for funding, indicating that further work would be required to identify projects capable of meeting the investment requirements of pension funds.
She explained that infrastructure was particularly attractive to pension funds because such investments typically have long-term horizons that correspond with the nature of pension liabilities.
According to her, infrastructure assets could also provide returns that offer pension funds some protection against inflation over the long term.
However, she stressed that the commission would not compel Pension Fund Administrators (PFAs) to invest in particular infrastructure projects.
Instead, PFAs would be expected to assess investment opportunities based on the interests of pension contributors, expected returns and applicable regulatory requirements.
“It’s out of the free will of everyone to look at what is in the best interest of contributors who they need to deliver the best outcomes to, and then on that basis take their decision,” she said.
Oloworaran said the commission remained focused on ensuring that any infrastructure investment undertaken by pension funds was consistent with their fiduciary responsibilities to contributors.
“By Q2 2027 we intend to have deployed the first tranche of the funds that are raised by then.
“The investments are what pension funds actually are interested in because largely they are long-term investments. They also provide an edge against inflation for us,” she said.
PenCom approves global benchmark assessment
Beyond infrastructure financing, Oloworaran announced that PenCom had approved an independent global benchmark maturity assessment for the Nigerian pension industry.
She said the exercise was intended to assess the industry against international standards and identify areas requiring further improvement.
“We think it’s something we need to do in order to elevate the industry to global standards and to ensure that we operate within best practice across all,” she said.
The assessment, according to the PenCom DG, is expected to be concluded soon and would form part of the broader effort to strengthen the Nigerian pension system.
Industry begins work on ‘Pensions 2030’ agenda
Oloworaran also disclosed that PenCom and key industry stakeholders were developing a “Pensions 2030” transformation agenda designed to consolidate reforms already under way and establish a long-term direction for the industry.
She said the initiative would provide a framework for formalising ongoing reforms while setting out where the pension industry should be by the end of the decade.
“It is to articulate and formalize all the reforms we’ve been working on as an industry. And in addition to that, also before thinking where we want this industry to be by 2030,” she said.
She explained that the proposed agenda would not be developed by PenCom alone, with further consultations expected among pension operators, regulators and development partners before the document is finalised.
The commission expects the process to be completed around December or January.
The developments form part of efforts by the pension industry to deepen its role in Nigeria’s financial system while expanding investment opportunities for pension assets and strengthening the sector’s long-term contribution to economic development.