FSD Africa Investments, the UK-backed specialist development finance investor, has committed £10m to ARM-Harith’s Climate and Transition Infrastructure Fund in a bid to unlock Nigerian pension funds for infrastructure development and boost the national economy.
The strategic investment is aimed at addressing long-standing barriers that have kept domestic institutional capital on the sidelines of infrastructure equity financing.
According to a statement, the ACT Fund, managed by ARM-Harith Infrastructure Investment Limited, is focused on climate-resilient infrastructure across Nigeria.
“FSDAi’s £10m injection introduces an innovative solution designed to attract local pension funds by offering early liquidity through predictable interim distributions,” it stated.
It further mentioned that this addresses a key hurdle, pension funds’ traditional aversion to long-term, liquid infrastructure investments.
In a groundbreaking shift, 75 per cent of FSDAi’s investment will be provided in local currency. This is the first time such a structure has been applied at this scale, significantly mitigating the impact of foreign exchange volatility, a major concern for pension fund managers.
The local currency facility is expected to catalyse an additional £31m in pension fund commitments, nearly five times the participation level achieved in ARM-Harith’s first infrastructure fund.
According to FSDAi Chief Investment Officer Anne-Marie Chidzero, “This partnership with ARM-Harith demonstrates how risk-bearing, market-building capital can be strategically structured to unlock domestic resources for national development. It is a blueprint for accelerating sustainable, green economic growth.
“The ACT Fund will direct capital toward critical sectors including renewable energy, clean transport, water infrastructure, and digital connectivity—all aligned with Nigeria’s green transition agenda and at least four of the UN Sustainable Development Goals. The initiative is expected to create or support up to 3,000 green jobs.”
Also, ARM-Harith CEO, Rachel Moré-Oshodi, described the investment as a game-changer.
“This is a global first. We have developed a private-sector-led model that delivers early liquidity and long-term capital growth for pension funds—something that could redefine infrastructure equity finance across Africa,” Moré-Oshodi said.
On his part, British Deputy High Commissioner in Lagos, Mr Jonny Baxter, lauded the initiative as a key milestone in financial sector development.
“By deepening local capital markets and enabling local currency investment, we’re supporting economic resilience and sustainable development in Nigeria,” Baxter stated.
“With this move, FSDAi and ARM-Harith are not just mobilising capital, they are pioneering a new future for infrastructure financing in Africa, one built on innovation, sustainability, and local ownership,” he noted.
