Pension Funds  Shift  Focus to  Infrastructure, Equities Investments

Ebere Nwoji

The Nigerian pension industry is shifting  its investment strategy  away  from  low-risk government securities towards  infrastructure and   equities, Director-General of the National Pension Commission( PenCom), Omolola Oloworaran, has disclosed.

Before now, industry players  rather starched  their pension assets in federal government bonds. They used to see both  equities  and infrastructure as the most dreaded investment portfolios unworthy of staking contributors’ hard earned money on.

However,  addressing the media at the first Quarter 2026 Pension Industry Leadership Council (PILC) in Lagos yesterday, Oloworaran,  said over N4 trillion ( more than 10 per cent of the entire pension assets) is now invested in the equities market. 

Also, she explained the reason for sudden choice of infrastructural portfolio as one of the good areas to invest pension funds,  saying it is part of efforts towards Nigeria’s economic development.

“ If the economy does well, pension sector will do well infrastructure addresses gaps in housing, creates job opportunities, gives the people financial capacity to be able to save so infrastructural investment is a win-win business because it appreciates a lot,” she explained.

Oloworaran said pension fund administrators would continue to diversify their investment portfolio, hence, seeing equities market as an outlet that would  give good investment returns on the N28trillion pension assets.

According to her, unlocking infrastructure financing through the proposed Nigerian Pension Industry Investment Consortium, which aims to channel pension funds into bankable national development projects while ensuring risk mitigation and sustainable returns is a major concern to the commission. She emphasised that investments in infrastructure would not only bridge critical gaps in the economy but also create jobs, boost productivity, and enhance long-term returns for pension contributors.

She further said the commission  would accelerate digital transformation across the industry, strengthen cybersecurity frameworks, and update risk management systems in response to emerging challenges.

Oloworaran also said deepening financial inclusion in the pension industry   through the Personal Pension Plan (PPP), particularly targeting the informal sector was a major concern of the commission.

The DG  was optimistic that nationwide sensitisation campaigns conducted across the six geopolitical zones have significantly increased participation, especially among women and small-scale entrepreneurs and would go further long way to enable the commission fulfill its dream of bringing  every Nigerian worker and business owner under pension net.

She further expressed her expectation and belief that the personal Pension Plan would in 2026   will grow to surpass cumulative gains recorded since its introduction in 2019.

According to her, this would be driven by enhanced awareness, incentives, and the deployment of accredited pension agents to expand outreach.

She was very optimistic that the sensitisation exercise carried in different zones in the country among market women during this year’s International Women’s Day would not be in vain but would yield a very good fruitful result in inspiring women in particular to key into pension system.

She expressed belief that  with the N20,000 incentive attachment to their contribution during the campaign, a good number of them would willingly embrace savings through pension.

The commission boss further disclosed improvements in retirement benefits, including the introduction of gratuity payments for federal government workers under treasury-funded ministries, departments, and agencies.