The Nigerian National Advisory Board for Impact Investing (NABII) in partnership with the Nigerian Economic Summit Group (NESG) held a stakeholder validation workshop on Investing for Impact in Nigeria: A deep dive into Agriculture, Education and Health Sectors, which recommended strong regulations and incentives for impact investing products and funds.

The workshop, which is a prequel to the launch of the report on Investing for Impact in Nigeria: A deep dive into Agriculture, Education and Health Sectors is aimed at unlocking the country’s impact investing potential with a focus on the agriculture, education and health sectors. The initiative was made possible with support from the Global Steering Group for Impact Investment (GSG), OTT Impacto and financed by the International Development Research Centre (IDRC).

The stakeholder validation was held , on Tuesday, in Lagos, to unveil the findings of the report and gather expert opinions and feedback on areas where the deep dive research report could further be improved.

The Vice Chair for NABII, Eng. Afolabi Oladele, while presenting his keynote address at the event expressed confidence in the findings of the study, saying it would bridge the information gap for impact investing in Nigeria and accelerate its growth.

The expert panel session at the workshop was moderated the Chief Executive Officer of the Impact Investors Foundation, Ms. Etemore Glover.

The powerful session comprised the Vice President, Financial Markets, AFEX Commodities Exchange Limited, Oluwafunto Olasemo; Founder, Teesas, Mr. Osayi Izedonmwen; Chairman/Medical Director, ECHOLAB Radiology and Laboratory Services, Dr Ayodele Cole Benson; Director, Partnership and Coordination, Small and Medium Enterprise Development Agency (SMEDAN), Dr Friday Okpara; and Executive Director, Policy Innovation Centre, Senior Fellow, NESG, Dr Osasuyi Dirisu.

They discussed the high-level findings of the study, provided deep insight into issues in the various sectors and highlighted potential policy recommendations for developing an inclusive and gender-balanced impact investing market in Nigeria.

Olasemo emphasized the need for capacity building for all stakeholders particularly MSMEs, investors and policymakers to fast-track the growth of the impact investing ecosystem.

Izedonmwen noted that investors needed to get educated on the viability of impact investment and why it was important to allocate funds from Development Finance Institutions and pension funds to impact investments, adding that social enterprises need to realize that the funds they received are meant to generate profit and social impact.

Sharing his perspectives on the health sector, Benson noted that a weak governance structure,  poor financial accountability systems and low profit margin  in most private healthcare facilities are limiting  access to funding, adding that the operators in the sectors require financing with a long-gestational period.

Dirisu advocated for policies that would increase the participation of women in impact investing, while ultimately creating a more equitable society for all men and women.

Commenting on the plight of MSMEs in the country, Okpara stated that access to capital is a major impediment to business growth and called for policies that would enhance their businesses and improve access to finance.

The collaborative study revealed a total of $USD 186.17 billion financing gap in Nigeria’s agriculture, health and education sectors.

The research identified key investment instruments for MSMEs operating within the agriculture, healthcare and education sectors with gender and sustainability as the cross-cutting guiding principles. Some of these instruments include low-cost debt financing, grant, equity and hybrid financing (debt and grant).