Recent regulatory reforms allowing pension funds to raise their infrastructure investments from 10 to 21 per cent will boots Nigerian’s infrastructure drive, Olufemi Odukoya, managing director, Parthian Pension said.
Odukoya who spoke at a panellist at the 2025 Parthian Economic Discourse in Lagos explained that the expanded investment window gives the pension industry the capacity to channel more funds into critical projects such as roads, power, and housing.
However, he warned that the success of the reform depends heavily on ensuring security around these investments and maintaining consistent, stable government policies.
“The reforms could unlock a significant pool of long-term financing for national development, but only if security and policy consistency are sustained”.
The conference, which had lead presenters and other panellists concluded with a consensus, that Nigeria stands at a rare moment where tax reforms, capital-market expansion, and regional integration could align to stimulate inclusive growth, however noted that this will happen only if policymakers confront insecurity, protect vulnerable households, and broaden private-sector participation in the reform agenda.
Nigeria’s pension industry continued its upward trajectory in September 2025, with total assets climbing to N26.09 trillion from N25.90 trillion in August. The gain represents a 0.75 per cent month-on-month increase and a strong 23.44 per cent rise compared to the previous year, underscoring steady investor confidence amid uneven capital market performance.
According to PenCom’s new data, Federal Government securities, including bonds, Sukuk, treasury bills, and agency instruments, remained the backbone of pension investments, making up around 60 per cent of all assets.
PFAs boosted their holdings in these government instruments by roughly N3trillion over the one-year period, signalling strong confidence in Federal Government debt despite ongoing macroeconomic challenges.
The equities market also enjoyed significant interest from pension managers. Domestic Ordinary Shares surged by about N1.6 trillion year-on-year, supported by better market valuations, stronger liquidity, and improved investor appetite.
Pension Funds Operators Association of Nigeria’s (PenOp) in a recent flagship infrastructure report stated that pension fund investment in infrastructure is still around 1.3 percent of total assets under management, even though regulations permit allocations of up to 10 percent.
The PenOp report highlights power and transport sectors as the most attractive destinations for pension fund investment, given their direct impact on industrialisation, trade, and productivity.
There is also rising interest in agriculture and healthcare, two sectors critical to Nigeria’s human and food security.
Agriculture it noted requires modern storage, logistics and irrigation systems to unlock its potential, while healthcare needs upgraded facilities to meet the demands of a growing population.
