AFC Capital Partners, the asset management arm of the Africa Finance Corporation, has launched a $150 million Infrastructure Climate-Resilient Fund in Nigeria following regulatory approval from the Securities and Exchange Commission.

The fund was formally launched in Lagos on Monday through the signing of a SEC-registered closed-end investment vehicle designed to channel domestic institutional capital into critical green and climate-resilient infrastructure projects.

The initiative forms part of a wider $750 million pan-African climate investment programme, with the Nigerian fund expected to help unlock financing from pension fund administrators, insurance companies and sovereign wealth funds. The Chief Financial Officer of AFC Capital Partners Nigeria, Chika Dotimi-Beke, said the immediate priority was to raise capital and bring institutional investors into the fund.

She said the company expected to make its first investment before the end of the year, with transport and renewable energy identified as priority sectors once the fund achieves its first close.

The Managing Director and Chief Executive Officer of Investment Banking at United Capital Plc, Gbadebo Adenrele, who served as financial adviser and issuing house for the transaction, said Nigeria had a large pool of domestic capital that could support infrastructure development.

Adenrele estimated Nigeria’s pension fund investment pool at between N31 trillion and N32 trillion, noting that it continued to grow.

He said Africa’s annual infrastructure financing gap was estimated at between $130 billion and $170 billion, highlighting the need to de-risk projects to attract institutional and commercial financing.

The Chief Risk Officer of the Africa Finance Corporation, David Johnson, said climate-related disruptions were costing Africa an estimated $200 billion annually.

He noted that flooding damaged roads and disrupted transportation in Nigeria, while rising temperatures accelerated the deterioration of transport infrastructure.

Johnson said the fund would invest across early-stage projects, mid-stage financing and mature operational assets to help manage project and currency risks.

The Chief Executive Officer of AFC Capital Partners, Ayaan Adam, said the fund would provide institutional investors with access to high-yield, climate-resilient infrastructure assets.

The fund is supported by the Green Climate Fund, which provides first-loss capital and technical assistance aimed at reducing investment risks and attracting private financing.