UK Government and FMO Launch Facility for Nigerian Businesses

The Manager Finance Facility (MFF), launched by FSD Africa, is a new financing initiative aimed at addressing the persistent challenge of access to growth capital for Nigeria's small and growing businesses. This facility is supported by the UK Government's Foreign, Commonwealth & Development Office (FCDO) Nigeria and FMO, the Dutch entrepreneurial development bank.

The MFF will not provide direct grants to businesses but will instead offer catalytic, returnable capital to local capital providers. This approach allows these providers to test innovative financing models, execute early transactions, and build investment track records.

The MFF will deploy capital through two main channels: Piloting Capital, which supports the testing of financing models and early transactions, and Operational Capital, which aids providers in strengthening their teams, systems, governance, and compliance. The financing models being explored include revenue-based finance, flexible equity, venture debt, blended finance, and local-currency structures.