The United Kingdom has thrown its support behind Nigeria’s proposed $750 million pension infrastructure investment fund, an initiative designed to channel long-term domestic pension savings and development finance into critical infrastructure projects across the country.
The proposed fund is expected to mobilise approximately $600 million from Nigerian pension funds, with an additional $150 million targeted from development finance institutions.
The initiative has attracted interest from 19 Nigerian pension funds and is expected to provide a structured investment vehicle for financing projects across key sectors, including energy, transportation and digital infrastructure.
The partnership was formalised through an agreement between the Pension Industry Leadership Council and FSD Africa, a UK-funded development agency, according to a statement issued on Tuesday.
Speaking on the development, the UK Deputy High Commissioner in Lagos, Jonny Baxter, said the partnership reflected the shared commitment of both countries to mobilising domestic capital for productive investments.
Baxter noted that Nigeria was making progress towards addressing the challenge of attracting long-term domestic investment, particularly from pension funds, into the real economy.
He said the initiative would create opportunities to translate investment ambitions into infrastructure development, employment generation and broader economic growth.
The proposed fund represents an effort to deepen the participation of institutional investors in Nigeria’s infrastructure financing market by providing a framework for pension assets to support commercially viable development projects.
Nigeria’s pension industry has continued to expand its asset base, creating opportunities for the deployment of long-term capital into investments capable of generating sustainable returns while supporting national development.
However, infrastructure financing has remained a major challenge, with government revenues and traditional sources of development finance often insufficient to meet the country’s substantial funding requirements.
The proposed investment vehicle is expected to help bridge this gap by connecting domestic pension capital with carefully structured infrastructure opportunities.
If successfully implemented, the fund could strengthen the role of Nigeria’s pension industry in financing economic development while providing institutional investors with opportunities to diversify their portfolios.
The partnership also highlights growing UK-Nigeria cooperation in mobilising private capital, strengthening financial markets and supporting sustainable infrastructure investment.
