February 19, 2022.

Diamond Suites, Eko Hotel &Suites. 

Online.

Background

The Meeting, which was the first such gathering in 2022, set itself the following objectives: 

–   To set the agenda and priorities for 2022, as well as review the NAB Priority Business  Case; 

–    To review the draft design of the Wholesaler Fund for Impact Investing;

–    To approve the programme for the Years 2022 -2024;

–    To discuss the NABs financial sustainability profile;

–    To explore opportunities, first on ways of implementing the recommendations of the G-7 Impact Taskforce (as pertains to NABs mandate), and to explore areas of possible collaboration with the Ghanaian National Advisory Board on Impact Investing.    

Attendance

Among the highlights of the meeting were two key presentations:

1st.  Presentation: Rukaiya el-Rufai, Partner, Sustainability & Climate Change, PwC

Rukaiya el-Rufai presented a business case of the priorities the NAB members should focus on in 2022 and beyond – highlighting eight sectors under five themes that summarized investment opportunities for creating short, medium, and long-term socioeconomic impact and financial returns. The five thematic areas include: 

–  Agriculture

–  Health

–  Education

–  Sustainable Cities

–  Economic Growth

–  Manufacturing

–  Technology, and 

–  Creative Innovation

Summary/Key Action Points

Following the opening presentation, participants at the meeting agreed on the following:

1.   That agriculture, education, and health will be top priority areas for the NAB, while gender and sustainability/climate change will be the cross-cutting guiding principles.
2.   That there is a need for intensive ecosystem education supported by research, impact measurement, management and capacity building to spur the growth of impact investing and to define its essence within the Nigerian context – given the fact that this area of investing is still at its nascent stage in the country. 

iii.     Members approved both the programme of activities for 2022-2024 and the utilisation of funds to engage consultants for the preliminary activities and any other support required to move the NAB to the next level in the period under review. 

1.   That a case should be made to set up an ad-hoc group to support the Secretariat

The membership framework should be redesigned to take into consideration individual and institutional members, benefits and price. In addition, a framework for the partnership of institutional members should be considered. 

2nd Presentation: Patrick Okigbo, Principal Partner, NexTier Advisory 

(Update on the Wholesaler Fund for Impact Investing)  

In making his presentation on the Wholesaler Fund, Okigbo explained that the fund was both a fund of funds and a market builder. He informed the meeting about his several engagements with the Debt Management Office and the Central Bank of Nigeria in respect of unclaimed bank accounts and dividends, noting that the possibility of accessing the fund was contingent on the fund’s structure. 

THE GRAND PLAN:                    

 NABs Programme of Activities for 2022 – 2024

The programme of activities for the next 3 years was divided into 6 phases as follows:

• Phase 1: Preliminary Activities in Q1 – Q3, 2022

–    A comprehensive ecosystem mapping and research

Mapping existing de-risking instruments available to Nigerian MSMEs and identifying gaps for social enterprises

–   Creation of an impact investing narrative for Nigeria by defining the term and a review of policies and extant laws inhibiting or promoting impact investing in Nigeria. 

–  Making recommendations on incentives and tax reliefs for investors, social enterprises and impact-oriented businesses to support advocacy for a new policy framework

–    Developing research on international best practices on how to engage pension funds and institutional investors. 

–    Setting up a database of investible enterprises in Nigeria

Setting up a research collaborative group consisting of local think tanks on impact investing. 

• Phase 2: Workshop and Capacity Building in Q4, 2022

–   Organising workshops with key stakeholders in the public, private and social sectors to review and validate findings.

–   Capacity-building training for WG members, regulators, pension fund managers and other institutional investors, as well as MSMEs, SOs, asset owners, etc.

• Phase 3: Increase the Supply of Impact Capital in Q4, 2022 – Q4, 2024

–  Facilitate the establishment of a wholesale fund for impact investing &$1billion  Special Impact Fund

–  Introduce de-risking investments, guarantees and schemes to encourage private sector investment. 

• Phase 4: Enterprise and Intermediary Capacity Building /Deal Facilitation in Q4, 2022 – Q4, 2024

–  Quality pipeline identification and investment-readiness support: Facilitate deals between Nigerian impact investors and SMEs / intermediaries.

–  Facilitate partnerships and joint ventures between Nigerian and established international intermediaries.

• Phase 5: Policy Advocacy in Q3, 2022 – Q4, 2024

–   Carry out advocacy programme to support new policy framework and to identify state-level champions

–  Development of policy and of the legal framework for the establishment of a wholesaler fund for impact investing. 

• Phase 6: Set Up of Knowledge Centre and Accreditation/Certification Launch in Q4 2023 – Q3, 2024

–  Establishment of an Impact Investing Knowledge Centre in collaboration with an educational institution 

–  Accreditation and Certification Launch (possibly outsource/collaborate with international bodies

–     Monitoring and Evaluation; this is a continuous exercise which begins with setting up a baseline.

In view of the foregoing, the NAB Meeting decided that activities for 2022 on the Programme would be focused on delivering activities in Phase 1, while some activities in the other phases such as capacity building, pipeline identification, and policy advocacy will commence in Q4, 2022. In addition, an Impact Measurement and Management framework will be established. The board also agreed that 2021 should be the end year baseline.