FSD Africa Investments (FSDAi), a UK-backed development finance institution, has committed £10 million to the ARM-Harith Climate and Transition Infrastructure Fund (ACT Fund) as part of efforts to unlock Nigerian pension funds for infrastructure development and strengthen the national economy.
According to a statement, the strategic investment is aimed at overcoming persistent barriers that have kept local institutional investors—especially pension funds—out of infrastructure equity financing due to concerns around liquidity and foreign exchange risks.
The ACT Fund, managed by ARM-Harith Infrastructure Investment Limited, is focused on funding climate-resilient infrastructure projects across Nigeria, including renewable energy, clean transport, water systems, and digital connectivity.
“FSDAi’s £10m injection introduces an innovative solution designed to attract local pension funds by offering early liquidity through predictable interim distributions,” the statement noted.
In a historic move, 75% of FSDAi’s investment will be in local currency—a first-of-its-kind structure at this scale. This is expected to reduce exposure to foreign exchange volatility, one of the major concerns of Nigerian pension fund managers.
The local currency facility is expected to unlock an additional £31 million in pension fund commitments, nearly five times the level raised by ARM-Harith’s first infrastructure fund.
“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,” she said.
FSDAi’s Chief Investment Officer, Anne-Marie Chidzero, described the initiative as a blueprint for green, sustainable economic growth.
“The ACT Fund will direct capital toward critical sectors aligned with Nigeria’s green transition and at least four UN Sustainable Development Goals. It is expected to create or support up to 3,000 green jobs,” she stated.
The British Deputy High Commissioner in Lagos, Mr. Jonny Baxter, commended the initiative, calling it a milestone in deepening Nigeria’s financial markets.
“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 said.
