Business mogul and Chairman of Heirs Holdings as well as the United Bank for Africa (UBA), Tony Elumelu, has called on African governments to unlock the continent’s vast pension funds to drive critical investments.
Elumelu made the appeal on Thursday in Washington during the launch of a white paper by UBA on mobilising over four trillion dollars in untapped domestic capital across Africa.
He urged leaders to address the continent’s long-standing electricity challenges if they truly seek inclusive growth and innovation.
According to him, Africa must reduce its dependence on foreign capital while putting idle domestic resources to productive use.
Elumelu stressed that sustainable development should be financed internally, beginning with pension and sovereign wealth funds.
He lamented that trillions of naira and dollars in pension assets remain tied up in low-yield instruments such as treasury bills and sovereign bonds, adding that such funds could be redirected into infrastructure, manufacturing, and renewable energy projects.
“Investing pension funds solely in treasury bills will not move Nigeria or Africa forward,” he said. “We must channel these funds into sectors that can transform our economies. Even if there are small losses initially, we will learn and improve over time — the important thing is to make the funds work for the African people.”
Elumelu noted that the United States successfully used pension funds to finance its industrial and technological advancement.
He also commended Nigeria’s introduction of the Contributory Pension Scheme (CPS) under former President Olusegun Obasanjo, describing it as a visionary reform. However, he said the time has come for those funds to be deployed strategically for national development.
Highlighting the continent’s energy deficit, Elumelu lamented that more than half of Africa’s population still lacks access to electricity.
“This is unacceptable and inconsistent with our vision of a digital and AI-driven Africa,” he said. “Electricity powers innovation and data systems. Our young people don’t need sympathy; they need working systems.”
He identified the power sector as the most critical barrier to Africa’s transformation, warning that without stable energy, digital progress would remain out of reach.
“For over two decades, we’ve said ‘Africa is rising.’ It’s time to act — starting with fixing our power supply,” he declared.
Elumelu explained that the UBA white paper calls for collaboration among African governments, development finance institutions, and private investors to mobilise domestic resources for long-term growth.
He urged policymakers to show leadership by creating an environment that encourages investment and reassures global investors of Africa’s commitment to progress.
“When we start mobilizing our own trillions, international investors will take us seriously,” he said. “Africa’s youth are talented and ambitious; they don’t need handouts — they need systems that empower them to succeed.”