… NABII launches report that reveals the Nigeria market  financing  gaps  for MSMEs

November 1, 2023, Lagos, Nigeria: Government officials, investors, global leaders, ecosystem builders, and development agencies in the impact investing ecosystem have outlined the transformative role catalytic capital could play in driving socioeconomic and inclusive growth in Nigeria.

They called for a multistakeholder approach to raising impact capital and identified immediate actions to ensure that every Nigerian has access to wealth and opportunities. They made these statements on Tuesday in Lagos at the 6th Annual Convening on Impact Investing hosted by the Impact Investors Foundation, Nigeria’s leading platform for unlocking impact capital.

The Minister for Budget and Economic Planning, Senator Abubakar Atiku Bagudu, in his remarks, identified catalytic capital as an absolute necessity in Nigeria because it is capable of reaching marginalised populations.

He expressed the readiness of the Federal Government to partner with the Impact Investors Foundation (IIF) to deploy impact capital to enterprises that are capable of driving economic growth, creating jobs, and prosperity for Nigerians.

“We have people in our society who are not able to participate in economic activities and make ends meet. An investment that includes everyone makes sense, and it is an absolute necessity for our society,” Senator Bagudu added.

“One of the 8-point agenda of this government administration is inclusivity and access to capital. And we can support in that area to drive economic growth and job creation for all and the prosperity that we need in Nigerian society. We are ready to honour the commitment that was given and we are happy for the opportunity to work with people who are experienced to ensure that the funds invested to deliver results are returned so that they continue to serve the needs of the future generations.”

The Keynote Speaker, Rt. Hon. Nick Hurd, Chair of the Global Steering Group for Impact Investing (GSG), said Nigeria could demonstrate a model for inclusive growth through the $1 billion Wholesale Impact Investment Fund (WIIF).

The Nigerian government in May this year endorsed the $100 million first-close of the Nigerian WIIF as an alternative instrument for the effective implementation of public welfare and social schemes and committed to contribute 50% of the initial raise.

Hurd commended the continuity of President Bola Ahmed Tinubu’s government administration in driving the WIIF and impact investment initiatives, which were started by the erstwhile government while pledging the support of the GSG to the NABII.

“This conversation aligns with what is happening in the world. The reality is the government has to change. The private sector cannot sit behind its walls of privilege. Businesses have to demonstrate that they need to be more socially responsible,” he said.

He added, “What could become possible with the Wholesale Impact Investment Fund (WIIF) is very critical to the country. Know that you are now plugged into the global system and we are completely on your side so you must own it.”

In her welcome remarks, the Vice Chair of the Global Steering Group for Impact Investing (GSGII) and Chairperson of the Nigerian National Advisory Board for Impact Investing (NABII), Mrs Ibukun Awosika, called on stakeholders in the private and public sectors to work together for the growth of Nigeria.

“The rest of the world is waiting for Nigeria to be successful. We need to use every platform and tool available to achieve what we need for our people. When we talk about wealth, it is not a gender issue but an economic issue,” she added.

In his remarks, the UNDP Resident Representative for Nigeria, Mohamad Yahya said the private sector, including both domestic and foreign investors, has a critical part to play in providing the capital and expertise needed for development.

He said, “The UNDP stands ready to work hand in hand with the government, the private sector, and civil society to leverage this capital effectively. Let us unite in our pursuit of a Nigeria where prosperity, opportunity, and dignity are accessible to all, leaving no one behind in the journey towards sustainable development.”

Prince Clem Agba, immediate past Minister for Budget and National Planning described catalytic capital as one of the growing sub-sectors of impact investing, which is considered an essential tool for seeding, scaling and sustaining impact because it provides investments that among other things, build a track record that can attract investors to riskier opportunities.

At the event, the IIF launched a report titled, Investing for Impact in Nigeria: A Deep Dive into Agriculture, Education, and Health Sectors. It reveals that the Nigerian financial market has limited capacity to cater for MSME demands.

The study, done by the Nigerian National  Advisory Board for Impact Investing and Nigerian Economic Summit Group (NESG), was supported by the Global Steering Group for Impact Investment (GSG), OTT Impacto and financed by the International Development Research Centre (IDRC).

The report contributes to the mainstreaming of impact investing in Nigeria and provides valuable insights into investing for impact with policy recommendations for unlocking the potential of the Agriculture, Education, and Health sectors. The report also includes recommendations for investing in MSMEs, women, and unlocking pension funds to mobilise capital to drive growth in these sectors.

“This report is an essential step toward understanding the enabling conditions for unlocking investment for impact in Agriculture, Health, and Education. The Impact Investors Foundation and its partners are committed to improving the awareness, stakeholders’ acceptance and development of enterprises for impact funds,” said Etemore Glover, Chief Executive Officer of the NABII.

The 6th Annual Convening on Impact Investing is organised by the Impact Investors Foundation (IIF) in partnership with the UNDP and EU, and supported by EHA Impact Ventures, Circular Economy Innovation Partnership (CEIP) and African Venture Philanthropy Alliance (AVPA), DI Africa, LEAP Africa and other foremost organisations in Nigeria.

About Impact Investors Foundation

The Impact Investors Foundation (IIF) is a non-profit organisation founded by a partnership comprising the Ford Foundation, Bank of Industry (BOI), African Capital Alliance (ACA), BusinessDay Media Ltd and Dalberg Advisors. The mission of the alliance is to work with

their stakeholders to reduce the barriers to impact investing in Nigeria so that more investors can be brought on board to find solutions to the country’s major socio-economic and development problems. Our approaches include convening critical actors in government, private and social sectors; promoting innovative investment approaches and tools; building evidence on what works and doesn’t work; and leadership and collective actions.

About the Nigerian National Advisory Board for Impact Investing (NABII)

The Nigerian National Advisory Board for Impact Investment is the leading national body established to strengthen the Impact Investment market in Nigeria. Its main purpose is to build a dynamic ecosystem for impact investment in Nigeria that delivers measurable and improved outcomes at scale for society, the environment, and the economy while increasing equitable access to capital.

The Nigeria NABII has a three-tiered structure – comprising a 15-member board, a second tier consisting of four working groups: The supply of capital, demand for capital, Intermediaries and policy working groups and the NAB Secretariat, the Impact Investors’ Foundation.