Elumelu to African leaders: Fix electricity, channel pension funds into manufacturing, infrastructure

Tony Elumelu, chairman of Heirs Holdings, has asked the African leaders to channel pension funds into critical sectors like infrastructure, energy, and manufacturing. 

Elumelu spoke on Thursday at the launch of the United Bank of Nigeria (UBA) White Paper report on the sidelines of the annual meetings of the World Bank-International Monetary Fund (IMF) in Washington DC.

Pension funds are investment pools that collect contributions from employees and/or employers to provide retirement income for workers.

Speaking to journalists after the event, Elumelu said while sovereign wealth funds are important, pension funds represent an even greater priority.

“Are we investing pension funds properly? No one will develop Africa for us. We must do it ourselves. Look at the Dangote Refinery — it became a reality because local banks and African institutions financed it, not foreign lenders,” he said.

“Pension funds have played a critical role in developing many countries, including the United States. Nigeria’s pension reform under President Obasanjo was a great initiative and has been managed well.

“But now, it’s time for those funds to go to work. Investing pension funds only in treasury bills will not develop Nigeria. We must channel them into critical sectors — infrastructure, energy, manufacturing — even if there’s a 5–10 percent loss initially. We will learn and improve over time.”

Elumelu said what matters is that the funds work for Africa’s development.

The entrepreneur said Africa must be included in global initiatives, stressing that the world needs to be intentional about involving the continent in the digital revolution.

“Africa must have a seat at the table where governance, practices, and protocols for artificial intelligence (AI) are being developed,” Elumelu said.

“We must be intentional about it and recognise that, in the 21st century, digital inclusion is economic inclusion.”

The banker said digital transformation should not only enhance productivity and efficiency but also promote the democratisation of prosperity.

“For us Africans, there’s a lot to do to take advantage of this moment,” he said.

“We’ve had revolutions before — like the mobile money revolution — and we did well. Now, there’s another opportunity before us with the digital and AI revolution.

“But for this to happen, access to electricity must improve. Electricity is critical to power data and the AI revolution. Yet, over 50% of our people do not have access to electricity. This is unacceptable.

“I use this opportunity to call on all African governments that are genuinely interested in solving youth unemployment, driving transformation, and democratising prosperity on the continent — fix the electricity challenge.”

He said African youths are not seeking sympathy, but “functional systems — an enabling environment that allows them to apply their talents productively”.

If this occurs, the entrepreneur said, Africa will develop, “if not, we are doomed”.