The business environment poses significant challenges globally as impact investing continues to gather momentum. Many institutional investors have started considering Environmental, Social and Governance (ESG) criteria in addition to financial returns. For pension fund managers in Nigeria, the challenge is finding investment opportunities that support profitability targets and meet sustainability requirements. This is a divergence from the global Impact investing market, where PFAs are increasingly becoming one of the primary drivers and sources of impact capital. The PFAs explicitly focus on impact projects on social infrastructure such as affordable housing development.

Considering the recent drought in foreign capital inflows in Nigeria and the country’s huge saving gaps, redirecting the pension industry’s assets for developmental purposes becomes imperative.