Pension funds infrastructure investment seen driving growth in real estate sector
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For the real estate sector, a new lifeline has emerged in the form of pension fund investments in corporate infrastructure bonds. The National Pension Commission (PenCom) came up with this strategic shift that is providing the much-needed capital for large-scale infrastructure projects across the country, offering competitive returns for pension contributors.
John Edumoh, CEO, Manroe Realty Limited, confirms that, among the sectors poised to benefit from this financial innovation, is real estate sector in which, according to, there is potential for growth.
Pension fund administrators (PFAs) were said to have invested N103.86 billion in infrastructure bonds in the first half of 2024, marking a 14 percent increase from the previous year. For Manroe Realty, a technology-driven real estate and property management company, this trend represents a major opportunity.
The company believes that as infrastructure investments fuel improvements in roads, bridges, and utilities, the real estate market can expect a surge in value with enhanced access to previously underserved areas.
“Robust infrastructure is the backbone of any thriving real estate sector,”Edumoh said, noting that with pension funds channelling more investments into infrastructure bonds, developers like them can leverage the improved accessibility and services to offer better real estate solutions for residential, commercial, or mixed-use developments.
The Kano-Maiduguri Expressway, the Enugu-Port Harcourt Expressway, and the Ibadan-Ilorin Expressway are among the key infrastructure projects receiving funding from infrastructure bonds. These projects, along with others, are transforming urban landscapes across Nigeria and increasing the viability of real estate projects in their vicinity.
Read also: PFAs flock to infrastructure bonds on high yields
Manroe Realty sees a clear connection between infrastructure development and sustainable real estate. It believes that pension fund investments in corporate infrastructure bonds create a ripple effect that bolsters local economies, enhances property values, and stimulates growth in Nigeria’s urban and semi-urban areas.
“These investments are not just about quick returns,” Edumoh says, explaining that they are long-term commitments to building a sustainable future for Nigeria. He says that as infrastructure improves, so does the quality of life for Nigerians, and that’s where real estate comes into play.