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.
“Well-connected, accessible properties are in high demand, and our role is to meet that demand in a way that aligns with national development goals,” he assured.
Pension fund managers have expressed strong appetite for corporate infrastructure bonds, indicating that this type of investment will continue to grow in the coming years. This is significant for the real estate sector, as improved infrastructure leads to new development zones and higher property values, giving companies like Manroe Realty the foundation they need to expand.
As Nigeria’s pension fund administrators, increasingly, allocate resources to Sukuk bonds and the Nigeria Infrastructure Debt Fund (NIDF), the opportunities for real estate developers are multiplying.
Between 2017 and 2023, PFAs invested N127 billion in Sukuk bonds for federal road projects, a move that has not only spurred economic activity but also opened up new frontiers for real estate development.
“Pension fund investments are essentially laying the groundwork for the next wave of real estate growth in Nigeria,” Edumoh notes, adding, “these investments are crucial in unlocking areas that have been difficult to develop due to poor infrastructure, allowing us to deliver properties in areas that were previously inaccessible or underutilized.”
By focusing on long-term, sustainable projects, PFAs are creating opportunities for real estate companies to engage in developments that contribute to Nigeria’s broader economic stability. This alignment between infrastructure and real estate will play a crucial role in shaping the country’s future, as new roads, bridges, and utilities make regions more attractive for residential, commercial, and industrial developments.
Considering the opportunities created by the increasing investments in infrastructure bonds, and with a focus on sustainable development, the company is committed to delivering innovative real estate solutions that meet the needs of Nigeria’s rapidly growing urban population.
“We see infrastructure investment as a catalyst for growth. At Manroe Realty, we are not just developing properties; we are building communities that contribute to Nigeria’s socio-economic fabric,” he noted.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
