ARM-Harith Secures £10m to Unlock Nigerian Pension Funds

The leading African private equity firm received the financial support from the United Kingdom-backed FSD Africa Investments (FSDAi) to unlock nigerian pension funds and catalyse local capital for infrastructure.

It was gathered that 75 per cent of the FSDAi facility would be provided in local currency, a first-of-its- kind approach specifically designed to mitigate the impact of foreign exchange (FX) volatility for pension funds.

This structure is expected to unlock an additional £31 million in pension fund contributions, nearly five times the participation achieved in ARM- Harith’s first fund.

The investment from ARM-Harith and FSDAi introduces an innovative solution to allow Nigerian pension funds to address a longstanding challenge in infrastructure equity finance: the ability to invest while receiving early liquidity.

By enabling predictable interim distributions during the early phases of investment, this innovative facility directly addresses a key barrier that has historically deterred domestic institutional capital from entering the asset class.

“For too long, domestic pension funds have remained on the sidelines of infrastructure equity due to liquidity constraints and heightened perception of risk.

“We are proud to have collaborated with FSDAi to design a pioneering solution that reduces risk for pension funds while delivering both early liquidity and long-term capital growth.

“This is a global first—a groundbreaking private sector-led solution that could fundamentally change how infrastructure equity is financed—not just in Nigeria, but across Africa,” the chief executive of ARM-Harith, Ms Rachel Moré-Oshodi, said.

Also, the Chief Investment Officer of FSDAi, Ms Anne-Marie Chidzero, said, “We are thrilled to collaborate with ARM-Harith to showcase how risk- bearing capital from a market-building investor like FSDAi can be strategically structured to unlock domestic institutional capital. This approach strengthens Africa’s financial markets and facilitates capital allocation towards sustainable, green economic growth across the continent.”

On his part, the British Deputy High Commissioner in Lagos, Mr Jonny Baxter, said, “The UK government, through its bilateral and investment vehicles is committed to continue to support the country’s financial sector — developing domestic capital markets as a means of financing priority sectors and driving economic development.

“Local currency capital helps mitigate the impact of foreign exchange volatility, narrows the financing gap, supports diversification into new asset classes and into climate- related projects and social sectors – while providing long-term funds to growing businesses.”