The National Pension Commission (PenCom) is in the final stages of reviewing the 5 percent cap on pension fund investments in infrastructure and private equity, in a bid to improve returns for contributors amid rising inflation.
Ibrahim Buwai, PenCom’s spokesperson, told Bloomberg today that the review aims to enhance portfolio performance:
“We are not really okay with returns the way they are because inflation is having significant negative impact,” he said.
Buwai disclosed that the new investment limit could be announced before the end of Q3 2025, and that the review would also ease requirements compelling pension fund administrators to commit at least 60 percent of infrastructure fund portfolios to Nigeria-based projects.
Nigeria’s pension assets, estimated at ₦19 trillion, remain heavily concentrated in fixed-income securities, which account for 62 percent of holdings. Fund managers have repeatedly urged the commission to allow greater diversification into alternative assets to bolster long-term yields.
“We want to see traction in these alternative assets to complement returns from fixed income and traditional investments,” Buwai added.
