IFC, calls for evolution of Nigerian pension funds to drive infrastructure growth

…proposes swap arrangements

The International Finance Corporation (IFC) has called for a fundamental evolution of Nigeria’s pension funds, advocating for their transition into strategic development finance instruments to bridge the nation’s massive infrastructure gap.

This was the focal point of a high-level meeting held on Thursday between President Tinubu and IFC Managing Director, Makhtar Diop, on the sidelines of the 13th Africa CEO Summit in Kigali.

Speaking, President Tinubu emphasized that the traditional model of pension fund management must shift toward supporting long-term economic transformation.

He argued that mobilizing African institutional capital is no longer optional but a fundamental requirement for financing the continent’s energy transition and industrialization.

“It has become imperative for African pension funds to evolve into strategic development finance instruments capable of supporting major infrastructure and productive-sector investments,” the President stated.

He further noted that decentralizing energy systems and strengthening regional transmission lines are critical areas where private sector investment, backed by institutional capital, can help Africa leapfrog its current developmental challenges.

Responding to Nigeria’s reform trajectory, Mr. Diop announced that the IFC will immediately deploy a mission to Nigeria.

The team’s primary mandate is to explore scalable investment structures that can unlock and de-risk private capital for the livestock, energy, and housing sectors.

The IFC boss specifically highlighted the potential for local currency financing and banking partnerships.

He suggested that collaborating with Nigerian financial institutions, such as Access Bank, could facilitate interstate financial integration and ease the complexities of cross-border trade.

The IFC delegation, which included Regional Vice President for Africa, Ethiopis Tafara, and Director for Nigeria, Dahlia Khalifa, lauded the courageous and transformative reforms of the Tinubu administration.

Mr. Diop noted that the removal of the fuel subsidy and the harmonization of the exchange rate have sent a powerful signal to the global investment community.

“President Tinubu, you have been so courageous… you took the bull by the horns,” Diop remarked, adding that these steps were necessary to position Nigeria as a prime destination for international capital.

The IFC MD further pledged to work with Nigeria to develop swap arrangements and local currency facilities to deepen infrastructure funding, ensuring that the country’s economic growth is both sustainable and driven by domestic institutional strength.