AFC Capital Partners (ACP), the asset management subsidiary of the Africa Finance Corporation (AFC), has launched the Infrastructure Climate-Resilient Fund Nigeria (ICRF Nigeria), a dedicated investment platform designed to mobilise domestic institutional capital for climate-resilient infrastructure projects in Nigeria and across Africa.
The fund has been registered with the Securities and Exchange Commission (SEC) as a closed-end fund and is structured to channel capital from Pension Fund Administrators (PFAs), insurance companies, asset managers and other Nigerian institutional investors into a diversified portfolio of commercially viable infrastructure projects.
ICRF Nigeria forms part of ACP’s broader US$750 million Infrastructure Climate-Resilient Fund (ICRF), which is designed to incorporate climate resilience considerations throughout the infrastructure investment lifecycle, from project planning and design to construction and operations.
The initiative addresses a significant financing challenge facing Africa: while the continent has substantial pools of domestic capital, much of this capital remains concentrated in relatively low-risk and short-term financial instruments rather than being deployed into productive sectors such as infrastructure, industry and innovation.
According to AFC President and Chief Executive Officer Samaila Zubairu, Africa holds more than US$4 trillion in domestic resources, including significant long-term pools of capital held by pension funds, insurance companies and sovereign wealth funds. The new fund seeks to create a mechanism through which a greater proportion of these resources can be directed towards productive investments.
For Nigerian institutional investors, ICRF Nigeria provides a dedicated route to participate in infrastructure investments while benefiting from portfolio diversification. Rather than individual institutions having to originate and manage infrastructure projects independently, the fund provides access to a professionally managed portfolio of infrastructure opportunities across Nigeria and the wider African market.
The climate-resilience component is also significant. Infrastructure assets are increasingly exposed to risks associated with flooding, extreme weather, rising temperatures and other climate-related disruptions. Incorporating climate considerations at the design and investment stage can improve the long-term resilience and sustainability of these assets while potentially protecting investor returns. ACP Chief Executive Officer Ayaan Adam said the fund combines institutional capital with AFC’s infrastructure expertise and the catalytic effect of blended finance. The approach is intended to address both the financing requirements of critical infrastructure and the increasing risks posed by climate change.
