A new financing facility, backed by the UK Government and FMO, has been launched to address one of the persistent challenges facing Nigeria's small and growing businesses: access to appropriate growth capital. The Manager Finance Facility (MFF), launched by FSD Africa, aims to strengthen emerging Alternative Local Capital Providers (ALCPs) that are developing financing models tailored to the cash-flow and growth realities of African businesses. This initiative is expected to create a channel for locally based capital providers to strengthen their capacity and potentially attract larger pools of private and institutional investment.
The MFF will provide flexible, returnable catalytic capital for providers testing financing models such as revenue-based finance, flexible equity, venture debt, blended finance, and local-currency funding. Rather than providing conventional grants directly to businesses, the facility will deploy capital through two main channels: Piloting Capital, which will support the testing of innovative financing models and early transactions; and Operational Capital, which will help providers strengthen teams, systems, governance, and compliance while building financially sustainable operations. This approach is designed to support the development of a stronger pipeline of investable businesses and mobilize more private and institutional capital into underserved African markets.
The facility is being supported by FMO, the Dutch entrepreneurial development bank, and the UK Government's Foreign, Commonwealth & Development Office (FCDO) Nigeria, with additional funding partners expected to join as it expands. Juliet Munro, Early-Stage Director, FSD Africa, noted that locally rooted capital providers need capital to prove their models, build institutions, and establish the track records required by larger investors. The initiative aims to address the financing constraints facing both small businesses and the emerging institutions seeking to finance them.
Temilola Akinrinade, Investment & Capital Markets Lead, FCDO Nigeria, said the UK is supporting the Nigeria window of the facility to strengthen locally rooted capital providers, mobilize further private investment, and support sustainable economic transformation. Andrew Shaw, Manager, Market Creation Financial Inclusion at FMO, added that backing local capital providers could help develop a stronger pipeline of investable businesses and mobilize more private and institutional capital into underserved African markets. The facility is particularly interested in emerging providers developing innovative investment models, including approaches incorporating climate resilience and gender-smart strategies.
Beyond financing, successful providers will have access to capacity-building and peer-learning support covering governance, environmental, social and governance issues, impact measurement, valuation, and fundraising. The facility is also intended to generate market data and evidence on alternative financing models, with FSD Africa seeking to demonstrate that African-led capital providers can develop into an investable asset class capable of attracting larger pools of capital. This support will help providers build financially sustainable operations and establish a track record of success.
Applications for Nigeria-based ALCPs opened on 1 September 2026, while applications from other eligible African markets opened on 17 September 2026. The MFF is designed to create a multiplier effect: stronger local capital providers, improved access to finance for growth businesses, and greater mobilization of private and institutional capital across African markets. Ultimately, the facility aims to support sustainable economic transformation and address the capital gap for Nigerian small and growing businesses.
The launch of the MFF follows the success of the UK Government's Manufacturing Africa programme in Nigeria, which has unlocked $630m in investment and created 21,400 jobs. The new facility is expected to build on this success and provide a new channel for locally based capital providers to access funding and support. With the UK Government and FMO backing the initiative, the MFF is well-positioned to make a significant impact in addressing the capital gap for Nigerian small and growing businesses.
Key points
- The Manager Finance Facility (MFF) aims to strengthen emerging Alternative Local Capital Providers (ALCPs) in Nigeria and other African markets.
- The facility will provide flexible, returnable catalytic capital for providers testing innovative financing models.
- The initiative is expected to create a multiplier effect, leading to stronger local capital providers, improved access to finance for growth businesses, and greater mobilization of private and institutional capital.
