Nigeria's First Naira Private Debt Fund Raises US$13M, Surpasses Target

James Ilori, CEO of FCMBAM

FCMB Asset Management Limited (FCMBAM) and TLG Capital have successfully closed the Series II Offer of the FCMB-TLG Private Debt Fund, raising ₦20.69 billion (approximately US$13 million) against its ₦20 billion (approximately US$12.6 million) target, representing an oversubscription of 3.43%.

The issuance forms part of the Fund's broader ₦100 billion (approximately US$63 million) issuance programme, reinforcing investor confidence in Nigeria's emerging private credit market.

The latest raise attracted 22 institutional and private investors, including 12 Pension Fund Administrators (PFAs).

Investor Composition

Investor Type	Contribution
Pension Fund Administrators (PFAs)	78%
High-Net-Worth Individuals (HNIs)	Part of remaining 22%
Corporate Investors	Part of remaining 22%
FCMB Asset Management	3% of Offer Size (Regulatory Requirement)

The strong participation from pension funds highlights growing institutional confidence in private debt as an alternative asset class within Nigeria.

Why Is This Fund Significant for Nigeria's Private Capital Market?

The FCMB-TLG Private Debt Fund launched in September 2024 as Nigeria's first Naira-denominated private debt fund, introducing a domestic institutional investment model focused on financing mid-sized businesses through local-currency debt.

Unlike foreign currency financing, local-currency lending reduces exchange-rate risk for Nigerian businesses while mobilising domestic long-term capital.

The successful close of two consecutive oversubscribed issuances demonstrates increasing acceptance of private credit among institutional investors.

Fundraising Round	Target	Amount Raised	Oversubscription
Series I (Sept 2024)	₦10 billion	₦10.43 billion	4.30%
Series II (2026)	₦20 billion	₦20.69 billion	3.43%

The achievement also reflects broader momentum within Africa's alternative investment landscape, where institutional investors are increasingly allocating capital beyond traditional listed securities into private markets.

How Has the Fund Performed Since Launch?

Since its launch in September 2024, the Fund has fully deployed its Series I capital within 12 months, financing nine Nigerian mid-sized companies across sectors considered essential for economic development.

Portfolio sectors include:

• Agriculture
• Clean Energy
• Healthcare
• Education
• Information Technology
• Transport & Logistics

As of 31 March 2026, the Fund had:

• Distributed ₦3.46 billion to unitholders
• Generated a 33.22% cumulative dividend yield
• Fully deployed Series I capital in under one year
• Supported nine portfolio companies

The funded businesses have contributed to:

• Expanding local food processing
• Manufacturing medical consumables domestically
• Scaling clean energy access
• Digitising essential goods distribution
• Increasing Nigerian exports
• Supporting import substitution initiatives

Where Will the New Capital Be Invested?

The ₦20.69 billion raised under Series II will provide long-term Naira-denominated debt financing to commercially viable, impact-driven Nigerian businesses.

Investment priorities include companies aligned with the United Nations Sustainable Development Goals (UN SDGs) while addressing structural financing gaps across the Nigerian economy.

Priority sectors include:

• Agriculture
• Healthcare
• Clean Energy
• Education
• Technology
• Transport & Logistics

By providing local-currency financing, the Fund aims to improve access to growth capital while reducing reliance on foreign-denominated debt.

Why Are Pension Funds Increasingly Investing in Private Debt?

One of the most notable outcomes from the Series II raise was the dominance of Nigerian pension capital.

Pension Fund Administrators contributed 78% of total commitments, indicating growing institutional appetite for private credit investments capable of delivering long-term, risk-adjusted returns.

According to James Ilori, Chief Executive Officer of FCMB Asset Management Limited:

"When we launched the country's first Naira-denominated Private Debt Fund, our objective was to demonstrate that domestic institutional capital could be responsibly deployed into Nigeria's mid-sized businesses. The strong participation from pension funds confirms growing confidence in this investment model."

Similarly, Zain Latif, CEO of TLG Capital, noted that the significance of the fundraising extends beyond its monetary value:

"The most important number is not the ₦20.69 billion raised, but the 78% contributed by Nigerian pension funds. Domestic institutional capital invested in local businesses represents one of Africa's most sustainable long-term funding sources."

How Does This Compare With Africa's Private Credit Landscape?

Private credit continues to gain traction globally as institutional investors seek higher-yielding alternatives to traditional fixed-income assets.

Across Africa, countries including Nigeria, South Africa, Kenya, and Egypt have seen increased activity in private debt and alternative financing as banks become more selective lenders.

While startup ecosystems are often associated with venture capital, private debt is emerging as an important financing mechanism for established mid-sized companies requiring growth capital without equity dilution.

Within the wider African investment ecosystem, organisations such as Development Bank of Nigeria (DBN), the African Development Bank (AfDB), and regional private capital managers continue expanding financing options for SMEs. Likewise, innovation hubs such as Hub71 in the UAE, ADGM (Abu Dhabi Global Market), and NEOM in Saudi Arabia illustrate the broader regional trend of institutional capital supporting economic diversification and private-sector growth.

 

 

FAQs

1. What is the FCMB-TLG Private Debt Fund?
The FCMB-TLG Private Debt Fund is Nigeria's first Naira-denominated private debt fund, launched in September 2024 to provide long-term financing for mid-sized Nigerian businesses through local-currency debt.

2. How much did the Series II fundraising raise?
The Series II Offer raised ₦20.69 billion, exceeding its ₦20 billion target by 3.43%, under the Fund's ₦100 billion issuance programme.

3. Who invested in the Series II Offer?
The fundraising attracted 22 investors, including 12 Pension Fund Administrators, with pension funds contributing 78% of the total capital raised. The remaining investments came from HNWIs, corporate investors, and FCMB Asset Management.

4. Which sectors will receive funding?
The Fund invests in Nigerian mid-sized businesses operating in agriculture, healthcare, clean energy, education, technology, and transport & logistics, with projects aligned to the United Nations Sustainable Development Goals (UN SDGs).

5. Why is this fundraising important?
The oversubscribed fundraising demonstrates increasing institutional confidence in Nigeria's private credit market while expanding access to long-term local-currency financing for growing businesses, supporting economic development and reducing reliance on foreign-denominated capital.