In a significant effort to unlock capital for Nigeria’s manufacturing sector, the UK government-backed initiative, Manufacturing Africa, has partnered with London-based investment firm TLG Capital.
The partnership aims to strengthen the capacity of Nigerian manufacturers to access funding through TLG Capital’s newly launched Africa Growth Impact Fund II (AGIF II).
The fund, which secured a $75 million first close towards its $200 million target, is anchored by the International Finance Corporation (IFC) and supported by major global investors such as Swedfund, Norfund and Bpifrance. This financial commitment underscores the growing interest in Nigeria’s industrial sector, particularly in scalable, impact-driven investments.
Through the collaboration, Manufacturing Africa will provide critical support in due diligence, ESG compliance, gender inclusion and operational improvements to ensure targeted manufacturers meet eligibility standards for investment from AGIF II. In a difficult economic environment, this strategic initiative is designed to give Nigerian manufacturers better access to finance, enabling job creation and long-term industrial development.
The first Nigerian beneficiary of this collaboration is Terra Aqua, an aluminium recycling company based in Ogun State, which is seeking $7.5 million in debt financing. TLG Capital has expressed a strong interest in funding the full amount, contingent on Terra Aqua’s compliance with environmental and performance criteria. This deal alone is expected to generate 200 direct jobs and over 750 indirect ones, while using 95 per cent less energy than primary aluminium production.
Since 2020, Manufacturing Africa has supported 41 investment deals in Nigeria, with a combined value of over $1 billion and the potential to create 38,000 direct jobs. Regionally, the programme has mobilised $2.4 billion and helped generate over 100,000 new jobs across Africa. In Nigeria alone, 13 of these deals have reached financial close, bringing in more than $150 million in foreign direct investment.
The UK Deputy High Commissioner in Lagos, Mr. Jonny Baxter, emphasised the importance of a strong manufacturing base for economic growth, saying the partnership with TLG Capital would accelerate foreign direct investment and promote inclusive prosperity in Nigeria. “By supporting TLG Capital, we’re helping strengthen Nigeria’s manufacturing potential and deepening capital flows that benefit both our economies,” he said.
Manufacturing Africa’s team leader, Thomas Pascoe echoed this sentiment, noting that the investment underscores the scale of development opportunities in African manufacturing. “We’re eager to work with TLG Capital to support high-impact projects through the AGIF II fund,” he added.
TLG Capital co-founder, Isha Doshi highlighted the fund’s commitment to flexible, context-driven financing. “AGIF II is about capital that understands African realities – funding that’s strategic and supported by technical expertise from Manufacturing Africa,” she said.
The partnership represents a promising new chapter in the effort to revitalise Nigeria’s manufacturing sector by bridging the financing gap and delivering long-term socio-economic impact through sustainable industrial investment.
