Pension Fund Investments in Nigerian Infrastructure Soar as Assets Triple Over 5 Years
In recent years, Nigerian pension fund managers have significantly increased their investments in infrastructure, with the sector seeing a 218% surge between 2015 and 2020. As of February 2025, the value of infrastructure investments stood at N207.58 billion, reflecting a 37.6% rise in just one year. This growth comes as better project structuring, higher returns, and a more favorable regulatory environment have made infrastructure more attractive to pension funds. Despite the increase, the investment still represents only 5% of the total assets under management, which now totals N23 trillion.
The steady rise in infrastructure investments reflects growing confidence in the sector as a stable, long-term hedge against inflation. Analysts from the Pension Fund Operators Association of Nigeria (PenOp) have pointed out that allocations have increased year on year, from N65.19 billion in 2021 to N207.58 billion in 2025. Agudah Oguche, CEO of PenOp, emphasized that infrastructure investments not only diversify pension portfolios but also contribute significantly to national development.
Key infrastructure funds like the Nigeria Infrastructure Debt Fund (NIDF), InfraCredit-backed initiatives, and the Fund for Agricultural Finance in Nigeria (FAFIN) have played a major role in supporting various projects in power, transport, clean energy, and agriculture. These investments have been crucial in driving improvements in the nation’s infrastructure, especially in underserved areas. Real estate developers also stand to benefit from enhanced accessibility brought on by better roads, utilities, and other infrastructure projects.
Meanwhile, Nigeria’s total pension assets have risen to N23.3 trillion, a modest increase from N22.86 trillion in January 2025. A large portion of these funds remains invested in federal government securities, including FGN bonds, while investments in domestic equities and money market instruments have also seen growth. The Nigerian Stock Exchange Pension Index (NSE-PI) has also posted gains, signaling a positive outlook for the overall performance of pension funds in the country.