️ Pension Funds Double Down on Infrastructure: Investments Jump 48% to ₦262.6bn
Nigeria’s pension industry is steadily increasing its exposure to infrastructure — and the growth is significant.
Here’s what the numbers show
Big Growth in Infrastructure Funds
Pension Fund Administrators (PFAs) invested:
• ₦262.57bn in infrastructure funds in 10 months to October 2025
• Up from ₦177.24bn in the same period in 2024
That’s a 48.1% year-on-year increase.
This reflects a deliberate diversification move.
Even Bigger Jump in Infrastructure Bonds
Investment in corporate infrastructure bonds surged even more:
• ₦36.61bn in 10M’25
• Up from ₦15.92bn in 10M’24
That’s a 130% increase.
This suggests PFAs are actively seeking higher-yielding long-term instruments.
Why the Shift?
Analysts point to three major drivers:
Higher Yields
Nigeria’s high interest rate environment has made infrastructure instruments more attractive.
Regulatory Support
PenCom has created a more supportive framework for alternative investments.
Portfolio Diversification
PFAs are moving beyond traditional government bonds into:
• Infrastructure funds
• Private equity
• Venture capital
This aligns with global pension investment trends.
But Exposure Is Still Small
Despite the growth, infrastructure investments account for only:
• 1.4% of total pension assets
Total pension assets stand at:
• ₦26.66 trillion
So while growth is strong, exposure remains relatively conservative.
The Bigger Context: Nigeria’s Infrastructure Gap
Nigeria is estimated to need:
• Up to $3 trillion over the next 30 years
This creates massive demand for long-term capital — and pension funds are natural providers of patient capital.
Industry Outlook
Experts believe:
• PFAs see infrastructure as a stable, long-term return asset
• Continued regulatory reforms will support growth
• Expanding pension participation (especially informal sector inclusion) will increase asset size
• The pension industry is positioned for sustained growth
What This Means for Investors
This is a structural shift, not a short-term play.
Key takeaways:
• Pension funds are gradually becoming infrastructure financiers
• Alternative assets are gaining traction
• Long-term capital is being mobilised locally
• Infrastructure-linked instruments may see increasing demand
Bottom Line
Pension funds are quietly repositioning — moving from traditional fixed income dominance toward strategic infrastructure exposure.
It’s still small at 1.4%, but the growth trajectory suggests this allocation could rise steadily in coming years.
Nigeria’s pension industry is steadily increasing its exposure to infrastructure — and the growth is significant.
Here’s what the numbers show
Big Growth in Infrastructure FundsPension Fund Administrators (PFAs) invested:
• ₦262.57bn in infrastructure funds in 10 months to October 2025
• Up from ₦177.24bn in the same period in 2024
That’s a 48.1% year-on-year increase.
This reflects a deliberate diversification move.
Even Bigger Jump in Infrastructure BondsInvestment in corporate infrastructure bonds surged even more:
• ₦36.61bn in 10M’25
• Up from ₦15.92bn in 10M’24
That’s a 130% increase.
This suggests PFAs are actively seeking higher-yielding long-term instruments.
Why the Shift?Analysts point to three major drivers:
Higher Yields
Nigeria’s high interest rate environment has made infrastructure instruments more attractive.
Regulatory Support
PenCom has created a more supportive framework for alternative investments.
Portfolio Diversification
PFAs are moving beyond traditional government bonds into:
• Infrastructure funds
• Private equity
• Venture capital
This aligns with global pension investment trends.
But Exposure Is Still SmallDespite the growth, infrastructure investments account for only:
• 1.4% of total pension assets
Total pension assets stand at:
• ₦26.66 trillion
So while growth is strong, exposure remains relatively conservative.
The Bigger Context: Nigeria’s Infrastructure GapNigeria is estimated to need:
• Up to $3 trillion over the next 30 years
This creates massive demand for long-term capital — and pension funds are natural providers of patient capital.
Industry OutlookExperts believe:
• PFAs see infrastructure as a stable, long-term return asset
• Continued regulatory reforms will support growth
• Expanding pension participation (especially informal sector inclusion) will increase asset size
• The pension industry is positioned for sustained growth
What This Means for Investors
This is a structural shift, not a short-term play.
Key takeaways:
• Pension funds are gradually becoming infrastructure financiers
• Alternative assets are gaining traction
• Long-term capital is being mobilised locally
• Infrastructure-linked instruments may see increasing demand
Bottom Line
Pension funds are quietly repositioning — moving from traditional fixed income dominance toward strategic infrastructure exposure.
It’s still small at 1.4%, but the growth trajectory suggests this allocation could rise steadily in coming years.