Nigeria’s pension fund regulator plans to diversify investments by focusing more on infrastructure and private equity. The move aims to reduce reliance on government debt and seek higher returns amid rising inflation.
As of February, the Retirement Savings Account held 23.26 trillion naira ($14.58 billion), with 60% invested in government securities. PenCom spokesperson Ibrahim Buwai said the fund wants more “real returns” by exploring commercially viable infrastructure projects.
However, strict rules currently limit investments to highly rated companies. PenCom is now working with market operators to widen the pool of acceptable financial instruments and create new investment vehicles.
Nigeria’s infrastructure deficit is projected to hit $878 billion by 2040. Improving roads, bridges, and utilities with pension funds could help unlock economic growth and long-term development.