A new project supported by the United Kingdom is seeking to unlock long-term capital for Nigeria’s manufacturing sector by tackling one of its biggest challenges, investment readiness.
Manufacturing Africa, a UK government-funded programme, has partnered with London-based TLG Capital to help Nigerian manufacturers become eligible for funding through the $200 million Africa Growth Impact Fund II (AGIF II).
The fund, which recently secured a $75 million first close, is backed by the International Finance Corporation (IFC), Swedfund–Sweden’s development finance institution, Norfund–the Norwegian investment fund for developing countries and French public sector investment bank, Bpifrance.
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With this move, the UK and its partners are doubling down on making Nigerian manufacturers bankable and investment-worthy, which is critical to creating jobs and reversing the sector’s decline.
“A strong manufacturing sector is key to driving economic growth and industrialisation in Nigeria,” said Jonny Baxter, deputy high commissioner in Lagos. “By supporting TLG Capital, we’re fostering capital flows that generate wealth and secure a prosperous future.”
Under the partnership, Manufacturing Africa will provide transaction support such as due diligence, ESG compliance and operations advice to help companies meet AGIF II’s investment standards.
The fund’s first Nigerian prospect is Terra Aqua, an aluminium recycler based in Ogun State. The firm is seeking $7.5 million in debt financing, with TLG prepared to invest the full amount once operational and ESG benchmarks are met. The deal could create 200 direct jobs and 752 indirect ones, according to the partners.
“This landmark investment emphasises the scale of opportunity in Africa’s manufacturing space,” said Thomas Pascoe, team leader at Manufacturing Africa. “We look forward to supporting more deals that bring jobs and growth.”
Since 2020, the programme has worked on 41 deals in Nigeria to raise over $1 billion in foreign direct investment and create 38,000 jobs. Across Africa, it has facilitated nearly $2.4 billion in investment and over 100,000 jobs.
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Isha Doshi, co-founder of TLG Capital, added that the new fund offers “capital that understands context—financing that’s flexible, strategic, and backed by advisory horsepower from Manufacturing Africa.
