Edun: Pension Funds Must Drive Nigeria’s Economic Growth. By Raymond Enoch
In a bold move to accelerate Nigeria’s economic development, Finance Minister and Coordinating Minister for the Economy, Wale Edun, has called for the strategic deployment of the nation’s pension assets.
Speaking at the 2025 Pension Industry Leadership Retreat in Lagos, Edun highlighted the transformative potential of Nigeria’s pension funds, which now exceed ₦23 trillion—approximately 8.6% of the country’s GDP.
Edun emphasized the importance of aligning these funds with national priorities such as infrastructure, housing, energy, and digital inclusion. He stated, “We must harness the transformative power of pension funds to support sustainable growth—without compromising the security of retirees’ savings.”
The Minister acknowledged that while Nigeria’s Contributory Pension Scheme has become one of Africa’s most successful savings platforms, the country still lags behind global pension penetration benchmarks. He urged stakeholders to consider well-regulated, de-risked investment vehicles that balance impact with safety and returns.
Reflecting on macroeconomic trends, Edun noted a Q1 2025 GDP growth of 3.84%, stronger reserves, and a more stable exchange rate. However, he stressed that faster expansion—at least 7% annually—is essential to reduce poverty. “The budget accounts for just 10% of GDP; institutional investors like pension funds must now take centre stage,” he added.
Edun reaffirmed President Bola Tinubu’s commitment to building an inclusive and resilient financial system that supports Nigeria’s long-term ambitions. This initiative marks a significant step towards leveraging domestic financial resources for national growth and addressing critical infrastructure needs.
