By Rosemary Iwunze

In search of better returns on investment, pension fund investment in private equity in Nigeria grew by 298.7 per cent in the last five years to N155.8 billion in 2025 from N39.08 billion in 2021. 

Data released by Pension Fund Operators Association of Nigeria, PenOp, show that after a 9.8 percent decline in 2022, pension fund investment in private equities had maintained a steady and sharp rises up till 2025.

Speaking on the development, Chief Executive Officer of PenOp, Mr. Oguche Agudah, explained that pension funds are moving towards private markets in search of better returns.

He stated: “Pension funds are increasingly moving towards private equity markets in search of better returns. Rather than investing in companies, pension funds put money into licensed private equity funds approved by PenCom.

“These funds then invest in sectors like infrastructure, fintech, healthcare, agribusiness, real estate, manufacturing, and tech infrastructure. Examples include funds like Chapel Hill Denham’s Nigeria Infrastructure Debt Fund (NIDF) and Sahel Capital’s FAFIN Fund.

“This growth reflects a shift by pension fund managers to diversify beyond government securities and listed stocks, aiming for higher, inflation-beating returns while supporting Nigeria’s real economy.”