PenCom mulls investment consortium to protect N23trn pension funds

From Abdullateef Aliyu, Lagos The Pension Industry Leadership Council is considering the establishment of a Pension Industry Investment Consortium which would serve as a strategic vehicle to channel pension funds into critical infrastructure projects while ensuring the safety and sustainability of contributors’ savings. The Director-General of the National Pension Commission (PenCom), Omolola Oloworaran said this […]

From Abdullateef Aliyu, Lagos

The Pension Industry Leadership Council is considering the establishment of a Pension Industry Investment Consortium which would serve as a strategic vehicle to channel pension funds into critical infrastructure projects while ensuring the safety and sustainability of contributors’ savings.

The Director-General of the National Pension Commission (PenCom), Omolola Oloworaran said this is part of deploying the pension fund into meaningful investment which would yield return for the pension industry and promote national development.

Oloworaran disclosed this yesterday while briefing newsmen on the outcome of the first quarter 2026 Pension Industry Leadership Council Meeting held in Lagos.

This is just as the PenCom DG who chairs the council disclosed plans by the commission to send the Independent Corrupt Practices Commission (ICPC) after employers who are not remitting the pensions of their employees.

Daily Trust reports that the Pension Industry Leadership Council (PILC) serves as a permanent multi-stakeholder advisory council designed to unify voices across the pension ecosystem and accelerate growth.

Its mission is to facilitate strategic dialogue, foster innovation, and mobilise collective action to strengthen and sustain a sound, inclusive, and sustainable pension system.

Oloworaran stated that the council is working on the structure of the consortium, saying it would be thoroughly de-risked so that the risk would be as minimal as possible in order to safeguard the over N23 trillion pension funds.

She however stated that infrastructure investment remains a veritable option for investing the pension fund.

According to her, pension funds being invested in infrastructure projects would be well structured.

“By investing in infrastructure, you invest in real assets and it is a win-win for the industry and for the nation. The success of the pension funds depends on the country’s economic growth. When the economy grows, the industry grows as well,” she said.

According to her, the initiative is part of broader efforts to deepen investment opportunities within the pension industry and expand beyond traditional asset classes.

“The council has considered, or is considering, the proposed Nigerian pension industry investment consortium,” she said, noting that the Investment and Financial Market Committee would further evaluate the framework.

She explained that the move is designed to create bankable investment pipelines that will support infrastructure financing and economic growth, while preserving the integrity of pension assets.

The PenCom boss emphasised that the pension industry is evolving from merely safeguarding funds to playing a more active role in driving economic development.

 

“Our objective is to build a market that works efficiently for the long term for all pension fund contributors,” she stated.

 

Oloworaran added that the commission is also focused on addressing market constraints through policy advocacy and stakeholder engagement, as well as expanding investment outlets to include alternative assets and innovative financial structures.

 

She further disclosed that PenCom is strengthening its institutional framework through various committees tasked with advancing investment, innovation, policy development, risk management, and stakeholder engagement across the industry.

 

On inclusion, she noted that the Personal Pension Plan (PPP) is gaining traction, particularly within the informal sector, with expectations that growth in participation this year will surpass cumulative gains recorded since its introduction in 2019.

 

For noncompliant employers, the DG recalled that the commission had signed a memorandum of understanding with the ICPC, saying the anti-graft agency would be sent after those employers.

 

This is in addition to naming and shaming the employers for failing in their obligations to remit pensions of their employees, she noted.

 

The DG also highlighted recent reforms aimed at improving pension outcomes, including additional exit benefits for federal government workers and a major upward review of pensions under the NSIT scheme, which has significantly increased monthly payouts.

 

She reiterated PenCom’s commitment to ensuring transparency, boosting public trust, and enhancing retirement outcomes for Nigerians.

 

“The pension industry is no longer just about safeguarding funds; it is about driving economic growth. We will continue to deepen investments, optimise returns, and ensure dignity in retirement for all contributors,” Oloworaran said.

 

She added that the commission, working with pension fund administrators and custodians, would strengthen coordination, accountability, and leadership across the industry to deliver greater impact.