Africa Finance Corporation (AFC) has launched the Infrastructure Climate-Resilient Fund Nigeria (ICRF Nigeria), a new investment platform designed to mobilise domestic institutional capital for climate-resilient infrastructure projects in Nigeria and across Africa.
The fund, launched through AFC Capital Partners (ACP), is registered with Nigeria’s Securities and Exchange Commission as a closed-end fund. It will provide pension fund administrators, insurers, asset managers and other institutional investors with access to commercially viable infrastructure opportunities.
ICRF Nigeria forms part of AFC’s US$750 million Infrastructure Climate-Resilient Fund, which aims to strengthen the resilience of African infrastructure by incorporating climate considerations throughout the planning, construction and operational stages of projects.
The broader fund has attracted support from major international and African institutions, including the Green Climate Fund, which has committed US$253 million in first-loss capital. Other participating institutions include the European Investment Bank, Development Bank of Southern Africa, Cassa Depositi e Prestiti and the Nigeria Sovereign Investment Authority.
AFC expects the fund to mobilise up to US$3.7 billion in total financing and develop a diversified portfolio of between 10 and 12 infrastructure projects across Africa.
AFC President and CEO Samaila Zubairu said the initiative would help connect Africa’s substantial domestic savings with the continent’s long-term infrastructure needs. He noted that significant pools of capital held by pension funds, insurers and sovereign wealth funds could play a greater role in financing productive sectors.
The fund will focus on key areas including renewable energy, transport and logistics, digital infrastructure and industrial development. Investments will undergo climate risk assessments covering issues such as extreme weather exposure, emissions pathways and climate governance.
Through blended finance and targeted de-risking mechanisms, ICRF aims to attract additional private investment into infrastructure projects that could otherwise face challenges securing financing.
The launch of ICRF Nigeria represents a significant step towards using domestic institutional capital to finance sustainable infrastructure while strengthening Nigeria and Africa’s ability to withstand growing climate-related risks.
