Nigeria: AFC Launches U.S.$750m Infrastructure Climate-Resilient Fund Nigeria

AFC Capital Partners (ACP), the asset management subsidiary of Africa Finance Corporation (AFC), has launched the US$750 million Infrastructure Climate-Resilient Fund (ICRF) Nigeria, a dedicated platform aimed at mobilising domestic institutional capital for climate-resilient infrastructure projects across Nigeria and Africa.

Registered with the Securities and Exchange Commission (SEC) as a closed-end fund, ICRF Nigeria is designed to channel capital from pension fund administrators (PFAs), insurers, asset managers and other Nigerian institutional investors into a diversified portfolio of commercially viable infrastructure projects with significant economic and climate impact.

The fund is part of ACP's US$750 million Infrastructure Climate-Resilient Fund, which seeks to strengthen the resilience of Africa's infrastructure by integrating climate considerations throughout the asset lifecycle, from planning and design to construction and operations.

ICRF has attracted commitments from major global and African institutional investors, including a US$253 million first-loss commitment from the Green Climate Fund (GCF), its largest equity investment in Africa to date. Other investors include the European Investment Bank (EIB), Development Bank of Southern Africa (DBSA), Cassa Depositi e Prestiti (CDP), the Nigeria Sovereign Investment Authority (NSIA) and several African pension funds.

ACP expects the US$750 million fund to mobilise up to US$3.7 billion in total financing and develop a diversified portfolio of 10 to 12 infrastructure projects across Africa.

Samaila Zubairu, President and CEO of AFC, said Africa has more than US$4 trillion in domestic resources, including substantial long-term capital held by pension funds, insurers and sovereign wealth funds.

He said the challenge was to create investment vehicles capable of connecting Africa's long-term savings with its development needs.

"ICRF Nigeria is an important step in that direction, enabling Nigerian institutional capital to participate in the infrastructure that will drive more resilient and sustainable growth across Nigeria and the continent," Zubairu said.

Ayaan Adam, CEO of ACP, said the fund would provide Nigerian institutional investors with a dedicated route into high-quality, climate-resilient infrastructure opportunities across Nigeria and Africa.

The fund combines concessional and commercial capital to overcome financing barriers that have historically constrained investment in climate adaptation across the continent. Through blended finance and targeted de-risking mechanisms, ICRF aims to unlock private capital for projects that could otherwise face difficulties securing financing.

The fund will target strategic sectors including renewable energy, transport and logistics, digital infrastructure and industrial development.

Its investment approach incorporates physical and transition climate risks, including exposure to extreme weather, emissions pathways and climate governance. Each investment will undergo climate-risk screening and assessment to embed resilience throughout the infrastructure lifecycle.

The Green Climate Fund will provide catalytic first-loss capital and technical assistance for climate-risk assessment and monitoring, helping to reduce investment risks and crowd in additional institutional capital for climate-resilient infrastructure across Africa.

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