The Federal Government has called for the strategic utilization of Nigeria’s growing pension assets to support key sectors of the economy, emphasizing that proper deployment could serve as a catalyst for national development and long-term financial sustainability.
The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, made this known during a stakeholders’ engagement forum on pension investment strategies held in Abuja. He stated that Nigeria’s pension funds, currently estimated at over ₦18 trillion, represent a significant pool of long-term capital that, if efficiently invested, can spur infrastructure development, housing, agriculture, and other productive sectors.
According to Edun, “The Federal Government is committed to working with pension fund administrators and regulators to ensure that these assets are not only safe but also invested in ways that yield meaningful economic returns and improve the livelihoods of Nigerians.”
He emphasized the need to balance safety and profitability while exploring innovative but secure investment avenues that align with the country’s development priorities. The Minister also called on the National Pension Commission (PenCom) and industry operators to adopt global best practices in portfolio diversification, risk management, and transparency to build trust and drive growth in the pension sector.
In her remarks, the Director General of PenCom, Aisha Dahir-Umar, affirmed the Commission’s readiness to support policies aimed at deepening pension fund investment in critical sectors. She noted that the Commission has already introduced multi-fund structures and revised regulations to allow for greater flexibility in investment, while ensuring the security of pension contributors’ savings.
Dahir-Umar added, “Our focus is to ensure that pension funds play a more active role in national development while protecting contributors. We are exploring more investment channels, including infrastructure bonds, housing schemes, and green energy projects.”
The meeting, attended by stakeholders from the financial sector, labor unions, and regulatory agencies, also discussed the challenges limiting broader investment of pension assets, such as market volatility, policy inconsistency, and limited financial instruments in some sectors.
With Nigeria seeking to diversify its economy and bridge the infrastructure gap, the strategic deployment of pension funds is seen as a viable solution for financing sustainable growth. The Federal Government’s renewed push aligns with President Bola Ahmed Tinubu’s economic agenda, which emphasizes leveraging domestic resources to stimulate development and job creation.
