Everyday workers in Nigeria are part of the Contributory Pension Scheme (CPS), where their monthly deductions are helping to shape the nation’s infrastructure without them even realising it.
Government is building roads, power and housing across the nation through issuance of bonds, which Pension Fund Administrators (PFAs) have found favourable because of its stable yields and low risk profile.
When Ndanusa received his first payslip as a junior worker at a Fabric Company is Kano about seven year ago, the line entitled ‘Pension Contribution’ barely caught his attention. Like many young workers, retirement was a distant, most times related to something meant for older people.
What Ndanusa did not know then was that those small monthly deductions from his small salary were doing more than preparing him for retirement, but were actively building the Nigeria he walks through today.
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Across the country, pension-backed Infrastructure funds grew by 11%, channelling billions of naira into long-term national development. And on a dusty stretch of highway outside Kanu, Ndanusa now works on one of those very projects that he has inconceivably built with his pensions.
“I used to think pension money just sat somewhere waiting for old age,” he said, wiping sweat from his forehead as road rollers hum in the background. “Now I’m working on a project that pension funds are supporting. It feels like I am building something for myself and for everyone else,” Ndanusa said while expressing joy.
Data from the National Pension Commission (PenCom) reveals that at the end of September 2025, PFAs’ allocation to infrastructure has expanded by 11%, showing a steady commitment to real-sector development as pension assets continue to support long-term national growth projects.
The amount allocated moved from N181.76 billion in September 2024 to N243.35 billion in the same period in 2025, in year-on-year growth.
Behind the scenes, pension fund administrators have been steadily increasing their commitments to the real sector. While these investments may look like complex financial decisions on paper, their impact unfolds in the daily lives of ordinary people.
The Kano-Maiduguri Expressway, the Enugu-Port Harcourt Expressway, and the Ibadan-Ilorin Expressway are among the key infrastructure projects receiving funding from infrastructure bonds.
“These projects, along with others, are transforming urban landscapes across Nigeria and increasing the viability of real estate projects in their vicinity,” said John Edumoh, CEO, Manroe Realty Limited.
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In Kogi State, a new power substation, partially financed through infrastructure investment channels, is helping a community enjoy more stable electricity. For Ojocheme’s wife, who runs a fast food joint, staying now with a regular power supply is just amazing. “We are seeing increased profits,” she said.
“I used to throw away food almost every week,” she recalled. “Now, my freezer stays on longer. I didn’t know pension money had anything to do with that.”
A breakdown of the investment shows that PFAs invested N127 billion in Sukuk Bonds (I-IV) for federal road projects between 2017 and 2023, while N103 billion was allocated to the Nigerian Infrastructure Debt Fund.
The roads that attracted these investments are the Kano-Maiduguri Express Way, Kaduna Eastern Bypass, Enugu-Port Harcourt Express, Ibadan Ilorin Express, Ahmadu Bello Way VI and Loko-Oweto Bridge.
Saadu Jijji, a pension chief, while explaining to National Assembly Members on how pension is impacting infrastructure development and contributing to economic growth, said a lot of funding has been made in the sector without much noise being made about it.
According to him, PFAs are the largest investors in NIDF, the biggest infrastructure fund in Nigeria that invests in projects from power to student hostels.
Jajji said PFAs also invested in Dangote Refinery and Petrochemicals when in 2022, the Dangote Industries issued a N300 billion bond for the completion of the refinery.
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“PFAs also invested in the ACTIS Real Estate fund that has acquired Jabi Lake Mall and will acquire Ikeja City Mall.”
Other infrastructure investments by PFAs are state bonds, Novare Real Estate, MTN, Niger Delta Exploration and Production Plc, Lagos Free Zone and the Nigeria Mortgage Refinancing Company (NMRC), where PFAs invested N26 billion from N100 billion guarantee.
One of the most profound impacts is improved access. In Ogun State, a once-isolated farming community now sits just 20 minutes from the nearest market, thanks to an upgraded road financed with a blend of public funds and pension-backed infrastructure investments.
“Our lives changed,” said 56-year-old cocoa farmer, Babatope. “We can sell more, earn more, and feed our families better. To think that workers’ pension savings helped make this possible, it’s amazing.”
For many workers like Ndanusa, the transformation is not just economic; it has touched society, and it is interesting.
“Knowing my pension is working for the country gives me pride,” he said. “One day, when I retire and start collecting it, I’ll remember I was part of something bigger, Ndanusa said.
His story mirrors that of millions of Nigerians, whose pension contributions, no matter how modest, are shaping roads, powering homes, strengthening industries, and improving livelihoods.
Its proof that a nation is not only built by those who pour the concrete or lay the cables, it’s built by each worker who shows up, month after month, and unknowingly invests in Nigeria’s future.
The Contributory Pension Scheme (CPS) in Nigeria is a mandatory retirement savings program for both public and private sector employees who work for an employer with at least three employees. Under the scheme, both the employer and employee contribute monthly to an individual’s Retirement Savings Account (RSA), which is managed by PFA.
The employer contributes a minimum of 10% while the employee contributes eight percent of the employee’s monthly emolument, including basic salary, housing, and transport allowances.
