RULE ON INFRASTRUCTURE FUNDS
Act · Finance
Rules establish a framework for infrastructure funds that pool investor capital for long-term projects. They target fund managers, institutional investors, and project developers. This channels funds into Nigeria's infrastructure development.
RULE ON INFRASTRUCTURE FUNDS
What Is This Policy?
SEC rules establishing the regulatory framework for infrastructure funds, a class of collective investment schemes that pool capital from investors to finance long-term infrastructure projects in Nigeria.
Who Does It Target?
Fund managers establishing and managing infrastructure funds Institutional investors including pension funds and insurance companies Infrastructure project developers seeking fund financing SEC as the regulatory and approval authority
What Does It Aim to Achieve?
Channel institutional capital into Nigeria's infrastructure deficit through a regulated fund vehicle, provide investors with diversified exposure to infrastructure returns, and complement public infrastructure budgets.
Key Features
Fund Registration: Infrastructure funds must be registered with SEC and satisfy minimum capital, governance, and disclosure requirements. Eligible Investments: Defines the categories of infrastructure assets in which the fund may invest including roads, power, water, and social infrastructure. Investor Protections: Mandates independent valuations, audited accounts, and investor reporting at prescribed intervals. Pension Fund Access: Registered infrastructure funds are included in PenCom's list of permissible pension fund investments subject to concentration limits.
Current Status
Rollout Stage: Active Coverage: Nigerian capital and investment market Beneficiaries: Infrastructure investors; pension contributors; Nigerian public through infrastructure development Funding: Private institutional capital; pension fund allocations
How to Access
Fund managers must be registered with SEC Fund must obtain a collective investment scheme licence from SEC Pension fund investment subject to PenCom investment guidelines Application method: Apply to SEC for infrastructure fund registration at https://www.sec.gov.ng
Important Terms
Infrastructure funds are illiquid; investors should have long investment horizons Management fees and carried interest must be fully disclosed Fund assets must be independently valued at least annually
Official Resources
Website: https://www.sec.gov.ng Contact: Securities and Exchange Commission (SEC) Nigeria
Legal Framework
Issued under the Investments and Securities Act 2007, which empowers the Securities and Exchange Commission (SEC) to make rules for collective investment schemes. Operates alongside the Companies and Allied Matters Act 2020, the Infrastructure Concession Regulatory Commission Act 2005, the National Sovereign Investment Authority Act 2011, and the Pension Reform Act 2014 for co-investment.