By David Akinmola
Investments in power, transportation, telecommunications and other critical infrastructure could help Nigerian investors protect long-term wealth against inflation and economic volatility while supporting productivity and job creation, Coronation Asset Management has said.
The investment firm said sustainable investing should go beyond environmental considerations to focus on economically relevant assets capable of generating resilient returns, strengthening businesses and addressing structural constraints to growth.
In a statement on sustainable investing and long-term wealth creation, the firm argued that infrastructure financing offered opportunities to connect long-term capital with productive sectors of the economy, particularly as investors navigate inflation, currency volatility and changing market conditions.
It identified energy access, logistics efficiency, digital connectivity, urban development and utilities as critical areas where sustained investment could improve economic competitiveness and create long-term value.
According to the firm, infrastructure assets can provide relatively stable income streams and exposure to real economic activity, although returns depend on project performance, financing structures, regulatory conditions and effective risk management.
The firm’s approach is reflected in the Coronation Infrastructure Fund, which focuses on transportation, real estate, utilities, social infrastructure, telecommunications and energy.
One of the fund’s investments is a 30-megawatt natural gas-fired embedded power plant, of which approximately 13 megawatts of capacity has been subscribed by key customers, according to the firm.
The facility supplies electricity to commercial users in a major business district, with the potential to improve power reliability and reduce businesses’ dependence on diesel-powered generators as subscriptions increase towards full capacity.
Coronation said the project was expected to create about 400 direct jobs across its construction and operational phases and displace more than 3,000 commercial and residential diesel generators.
The investment illustrates the potential economic benefits of private capital flowing into energy infrastructure, particularly in a country where unreliable electricity supply increases operating costs and constrains business productivity.
The fund has also financed the acquisition of 300 Sinotruk trucks for goods distribution across Nigeria’s six geopolitical zones. The fleet moves approximately 550,000 tonnes of goods monthly, supporting supply chains in agriculture, construction materials and consumer goods, the firm said.
The logistics platform supports about 7,700 direct and indirect jobs, with women accounting for 14 per cent of managerial positions, according to the investment firm.
Beyond deploying capital, Coronation said environmental, social and governance considerations were incorporated into investment screening and due diligence to identify risks that could undermine the long-term performance of projects.
Such considerations include environmental impacts, labour practices, governance standards and regulatory changes, which can affect both the financial sustainability of infrastructure assets and their wider economic benefits.
The firm also highlighted the potential role of pension funds in financing long-term productive assets, citing provisions in the National Pension Commission’s revised investment regulations that permit eligible pension fund assets to be allocated to infrastructure funds, subject to applicable investment limits and requirements.
Greater participation by institutional investors could help mobilise domestic savings for infrastructure development, while providing pension portfolios with exposure to assets linked to long-term economic activity.
However, infrastructure investment also carries risks, including construction delays, cost overruns, financing pressures, regulatory uncertainty and difficulties in realising investments when cash is required. Investors therefore need to assess expected returns, project viability, governance and liquidity before committing funds.
Coronation said the Nigerian Sustainable Finance Roadmap also provides a framework for mobilising capital towards sustainable development priorities, including infrastructure and climate resilience.
The firm’s position comes amid growing interest in how domestic institutional savings can support investment in productive sectors while meeting the long-term obligations of pension contributors and other investors.
It said sustainable wealth creation required disciplined capital allocation, sound governance and rigorous risk assessment rather than short-term reactions to market volatility.
The Coronation Infrastructure Fund was named Nigeria’s Best Investment Manager for Private Credit at the Euromoney Private Banking Awards 2026, according to the firm.
For Nigeria, the broader challenge is to ensure that infrastructure financing delivers commercially viable investments alongside measurable economic benefits, including more reliable electricity, efficient distribution networks, employment opportunities and stronger business productivity.
