The National Pension Commission says it is reviewing the share of funds that can be invested in infrastructure and private equity.

The move is to boost returns on retirement savings, the commission’s spokesperson, Ibrahim Buwai, told Bloomberg on Tuesday.

Buwai said PenCom is in the final stages of reviewing the limit on pension fund investments in the aforementioned asset classes, currently capped at 5 per cent.

“We are not really okay with returns the way they are because inflation is having significant negative impact,” the PenCom official said.

He disclosed that the revised limit could be announced before the end of the third quarter of the year.

Buwai explained that the review would substantially ease the current rule requiring pension fund administrators to invest in infrastructure funds, with at least 60 per cent of their portfolios tied to projects domiciled in Nigeria.

He noted that Nigerian pension fund managers have requested greater flexibility from PenCom to invest beyond fixed-income securities, which currently make up 62 percent of their total assets.

The spokesperson added that the commission aims to drive more activity in alternative assets to complement returns from fixed-income instruments and other traditional investments.