PENSION FUND INVESTMENT STRATEGIES AND INFRASTRUCTURE FINANCING IN NIGERIA

Abstract

This study examines the effectiveness of pension fund investment strategies in facilitating infrastructure financing in Nigeria. It explores several key investment vehicles, including Public-Private Partnerships (PPP), housing project financing, infrastructural bonds, co-investment, and direct infrastructural funding. The data were collected from secondary sources, including reports and databases from PenCom, the National Bureau of Statistics, the Debt Management Office, and other financial institutions. STATA software was used to analyze the data and draw conclusions. The findings indicate that PPP, housing project financing, and infrastructural bonds have a negative and insignificant relationship with infrastructure financing, suggesting that these strategies do not significantly contribute to infrastructure development in Nigeria. These results contradict some prior studies as stated in the interpretation of findings, while aligning with the findings of other studies. In contrast, co-investment demonstrates a positive and significant relationship with infrastructure financing, highlighting its potential as an effective strategy for mobilizing pension funds toward infrastructure projects. Overall, the study suggests that while certain investment strategies may not currently be effective in driving infrastructure financing, co-investment holds promise for enhancing the role of pension funds in Nigeria’s infrastructure development.