Pension industry mulls investment portfolio to cater for national projects

The nation’s pension industry through the Pension Industry Leadership Council (PILC) is proposing an investment portfolio that will invest in national and government projects.

To be called the ‘Nigerian Pension Industry Investment Portfolio, the goal is to create a fund capable of investing in national and government projects.

Omolola Oloworaran, director general of the National Pension Commission (PenCom) made the disclosure during a press briefing after the first meeting of PILC held in Lagos.

“It is critical to channel pension capital into infrastructure, create bankable investment pipelines, support national development, and preserve returns.”

Oloworaran said, the ‘Investment and Financial Markets Committee’ has been set up to develop structured investment vehicles for infrastructure financing. These structures are being carefully designed to minimize risk exposure for pension funds while enabling participation in large-scale national projects, she said.

According to her, implementation will follow once frameworks are finalised, with strong emphasis on risk management and capital preservation.

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Speaking on the coming on board of PILC, Oloworaran said the inauguration of this Council marks the beginning of a new phase for the pension industry, one defined by leadership, coordination, and unity.

She noted that the Council affirms a fundamental shift in the role of pension funds. “Pension funds will no longer be passive investors. They will become active drivers of economic development, leveraging one of the largest pools of savings capital in the country,” she said.

According to her, this transition will require stronger stewardship from Pension Fund Administrators (PFAs), enhanced influence in corporate governance, and a more assertive role in shaping market outcomes.

“To drive this agenda, we have established several key committees,” she added, listing the Investment and Financial Markets Committee; Innovation, Risk, and Sustainability Committee; Policy, Strategy, and Industry Development Committee; Stakeholder Engagement and Advocacy Committee; Governance and Ethics Committee; and Strategy Committee.

Oloworaran explained that these committees are designed to strengthen market discipline and deepen investments.

She emphasised that the overarching goal is to build a resilient system. “Our objective is clear, to build a market that works efficiently and sustainably for all pension contributors. We also recognise the importance of unlocking infrastructure investment at scale.”

Highlighting innovation priorities, Oloworaran said: “Through the Innovation, Risk, and Sustainability Committee, we will drive digital transformation, strengthen cybersecurity and data protection, and develop an industry-wide risk framework.”

She also underscored the importance of policy alignment and data-driven performance. “The Policy, Strategy, and Industry Development Committee will focus on developing a new medium-term industry strategy, driving policy harmonisation, and strengthening research, benchmarking, and performance tracking,” she said.

On public engagement, she noted: “Through the Stakeholder Engagement and Advocacy Committee, we aim to build public trust in the pension system, expand pension literacy, improve compliance and participation, and ensure transparent and consistent communication across the industry.”

Oloworaran reaffirmed the Commission’s commitment to inclusion. “We remain committed to driving inclusion. Through the Personal Pension Plan, we are implementing a nationwide rollout, engaging participants across all geopolitical zones. We expect participation levels to exceed previous records since the plan’s introduction,” she said.

She also pointed to on-going reforms aimed at improving retirement outcomes. “We highlight recent developments, including the introduction of additional exit benefits for federal government workers and improvements in pension outcomes across various schemes. These developments represent tangible progress in retirement benefits.”