….Domestic Capital Underused, Says FSD Africa
….Analysts Call for Greater Climate Finance Allocation
By NIyi Jacobs
Nigeria’s pension assets, valued at $15.1 billion as of April 2025, are projected to exceed $25 billion by 2030, according to Adebayo Araoye, Senior Specialist at FSD Africa. Aronye made this known at a technical workshop for Pension Fund Administrators (PFAs) in Lagos, focused on deepening investment in alternative assets.
He expressed concern that only 1.5% of Africa’s total assets under management (AUMs) currently goes to climate finance, despite the fact that African AUMs were 45 times larger than the continent’s foreign direct investment inflows in 2023. Araoye argued that the potential of domestic capital to drive infrastructure and sustainability efforts remains largely untapped.
The workshop brought together top-level decision-makers from PFAs, including board chairs and managing directors. Presentations were delivered by key stakeholders such as Jonny Baxter, British Deputy High Commissioner to Nigeria; and Christopher Bajowa, PenOp President and CEO of FCMB Pensions.
As pension assets continue to grow rapidly, industry leaders and regulators are being urged to diversify portfolios and increase allocations to climate-aligned and infrastructure investments.
Araoye noted that such moves not only promote sustainability but also offer strong long-term returns for pension beneficiaries
