Stakeholders seek local capital to drive investments
Stakeholders in the financial, investment, and development sectors have called for practical ways to drive local capital to impact investing activities in the country.
The stakeholders made the call in Lagos at the 2025 Investors Roundtable, hosted by the Impact Investors Foundation, on Wednesday, to explore practical steps for accelerating and enhancing the volume, composition, and flow of capital toward impact investments in Nigeria.
According to the Global Impact Investing Network, impact investing refers to investments made to generate both financial returns and positive social or environmental impact. Unlike traditional investing, which focuses solely on profit, impact investing seeks to address pressing global challenges such as poverty, climate change, education, and healthcare while still being financially sustainable.
The roundtable, themed ‘Catalysing Impactful Investments in Nigeria: Unlocking Opportunities, Driving Sustainable Growth’, saw participants engage in intense discussions on how to tap into local capital pools, including pension funds, government resources, high-net-worth individuals, and corporate investors. A key focus was the need for regulatory reforms to streamline the fund registration process with the Securities and Exchange Commission, making Nigeria a more attractive jurisdiction for local fund domiciliation.
The high-profile roundtable highlighted the urgent need to shift focus from dwindling international capital inflows to harnessing the nation’s vast domestic resources.
Industry leaders, including fund managers, investors, financial institutions, and regulators, voiced concerns over the current state of impact investing in Nigeria, citing systemic barriers and a lack of robust framework for attracting local funds. With Nigeria facing mounting economic challenges, the consensus was clear: the nation must look inward to fund its development goals.
“We cannot continue to rely solely on foreign investment,” stated Partner at Sahel Capital Agribusiness Managers Limited, Tosin Ojo, during her keynote address. “The sustainability of financial returns is crucial for domestic investors. No impact can be sustained without a strong financial foundation. We must create an environment that encourages Nigerians to invest in Nigeria.”
“The current process is cumbersome and deters potential investors. We need a more seamless system to encourage local participation,” argued founder/chief executive officer of Aruwa Capital Management, Ms Adesuwa Okunbo Rhodes, during a panel discussion.
The event, supported by the Ford Foundation, the UK International Development’s RISA Fund, and Wema Bank, also addressed the critical role of micro, small, and medium enterprises in driving economic growth.
Stressing the need for alternative investment mechanisms to support these vital businesses, the Chair of IIF, Mr Frank Aigbogun, said, “MSMEs are the backbone of our economy. We must find innovative ways to provide them with the capital they need to thrive.”
A new study by the Mastercard Foundation and MEDA, exploring Africa as a viable jurisdiction for fund domiciliation, provided further impetus for the discussions.
The stakeholders committed to translating the insights from the roundtable into concrete policy recommendations and investment facilitation programmes.
