ARM Investment Managers has unveiled a N200 billion private debt programme designed to expand access to long-term financing for small and medium-sized enterprises across Nigeria. The launch was announced during a Lagos event by Deji Opeola, CEO of the ARM Private Debt Fund.
The initiative introduces Series I of the ARM Private Debt Fund, a closed-ended private credit vehicle aimed at providing structured, long-term capital to scalable SMEs while offering stable, risk-adjusted returns to institutional and qualified investors. The initial target for Series I is N25 billion, forming part of the broader N200 billion shelf programme registered under applicable regulatory frameworks.
The fund will deploy capital primarily through senior secured term loans, revolving credit facilities, and selective subordinated debt to high-quality SMEs across key sectors, including manufacturing, trade and distribution, agribusiness value chains (excluding primary agriculture), services, logistics, and technology-enabled businesses.
Speaking on the rationale behind the fund, Opeola highlighted the persistent credit gap for African SMEs, estimating over $40 billion continent-wide, with Nigeria alone facing a $32.2 billion shortfall. “Banks provide roughly 90 percent of all credit in Africa but remain risk-averse toward SMEs,” he said. “This fund is deliberately structured to bridge that financing gap while maintaining strong investment discipline.”
ARM emphasized that at least 80 percent of the portfolio will be invested in senior secured, asset-backed, and covenant-protected facilities, with expected returns of about 300 basis points above the yield on the Federal Government of Nigeria’s 10-year bond, subject to market conditions.
Wale Odutola, Group CEO of ARM Holdings, noted the broader economic impact, stressing that substantial investment in alternative asset classes, such as infrastructure, private debt, trade, agriculture, and the creative sector, is critical to driving inclusive growth in Nigeria. He said the fund provides a platform for private companies to access capital needed to scale operations, improve services, increase output, expand market share, and pursue regional expansion.
The fund targets institutional investors, development finance institutions, family offices, and high-net-worth individuals seeking exposure to private credit as a portfolio diversifier, reinforcing ARM’s commitment to supporting SME growth, job creation, and the deepening of local value chains.
