PROGRAM

The Nigeria Wholesale Impact Investment Fund (WIIF)​

Background

Nigeria’s Economic Challenges and the Role of Private Enterprises
Nigeria is grappling with severe socio-economic and political challenges, including sluggish economic growth, high inflation, currency devaluation, widespread unemployment, and persistent poverty. In addition, the Federal Government’s increasing reliance on borrowing to meet interest payments on existing loans has significantly reduced the funds available for investments that could stimulate economic growth.

While private enterprises should be the backbone of the Nigerian economy, they continue to struggle, with access to capital emerging as a critical impediment to their growth. Addressing this challenge is essential to unlocking the full potential of private enterprises, fostering sustainable economic development, and promoting wealth creation in the country.

The Financing Gap for MSMEs in Nigeria
The International Finance Corporation (IFC) estimates an annual financing gap of $331 billion for Micro, Small, and Medium Enterprises (MSMEs) across Africa. In Nigeria, despite their critical role in driving economic growth, MSMEs receive a disproportionately small share of total investment.
Nigeria’s 39.7 million MSMEs account for over 97% of businesses, employ 86% of the country’s workforce, and contribute approximately 46% to the nation’s GDP. However, they still face a significant funding shortfall, with an estimated financing gap of $32.2 billion, according to the IFC. This stark disparity highlights the urgent need for increased investment in MSMEs to enable them to reach their full potential and drive sustainable development.

Introducing the Nigeria Wholesale Impact Investment Fund (WIIF)

To tackle the persistent issue of inadequate capital for MSMEs in Nigeria, the Impact Investors Foundation (IIF) and the Nigerian National Advisory Board for Impact Investment (NABII) have proposed the establishment of the Nigeria Wholesale Impact Investment Fund (WIIF). This innovative financing mechanism is designed to support MSMEs while fostering a robust impact investment ecosystem in the country.

IIF and NABII collaborated closely with key stakeholders, including the EU/BMZ-funded GIZ Nigeria Competitiveness Project (NICOP), the Ford Foundation, Nextier, and the Federal Ministry of Budget and Economic Planning, to develop the WIIF framework.

About the Nigerian WIIF​

The WIIF is a $1 billion financial vehicle aimed at delivering measurable positive impacts on both people and the planet by providing catalytic financing for MSMEs. Upon its full establishment, WIIF will function as a “fund of funds,” investing through intermediary impact funds while simultaneously acting as a “market builder” to enhance the impact investment ecosystem and improve MSMEs’ access to capital.

The initial fundraising target for WIIF is $100 million, with the Nigerian Government, through the Federal Ministry of Budget and Economic Planning, committed to investing $50 million as an anchor fund. This foundational investment aims to attract private investors to co-invest in WIIF. Importantly, the WIIF will be denominated in Naira to provide local currency capital, ensuring Nigerian SME-focused fund managers can access much-needed resources without the risks associated with foreign currency fluctuations.

Sector Focus and Investment Strategy

The WIIF will invest across diverse sectors to maximize its impact, including:

Health

Education

Agriculture

Renewable Energy

Consumer Goods

Finance

Creative Industries

This broad sectoral focus ensures that investments contribute to economic diversification and resilience while addressing pressing social and environmental challenges.

The Urgency of Naira-Denominated Impact Investments

While impact investment is gradually expanding in Nigeria, it remains largely unsuitable for MSMEs. The current investment landscape is dominated by dollar-denominated capital with a preference for larger-scale enterprises. Additionally, Development Finance Institutions (DFIs) account for over 85% of impact transactions, primarily offering debt financing with ticket sizes that are beyond the reach of most MSMEs.
This underscores the necessity of the WIIF, a fund specifically designed to provide naira-denominated investments for high-growth SMEs. By focusing on local currency funding, the WIIF mitigates exchange rate risks and enhances accessibility for smaller businesses that are integral to Nigeria’s economic prospe

The Nigerian WIIF Team

The WIIF will invest across diverse sectors to maximize its impact, including:

The WIIF Investment Strategy

The WIIF’s investment strategy is centered around the ABC Framework, a three-pronged approach designed to foster sustainable impact and create a thriving impact investment ecosystem in Nigeria. 

Accelerate

A dedicated program focused on providing institutionalized training through a structured curriculum, technical assistance and mentoring to 25 first-time fund managers in their developmental stage to build their capacity in structuring an impact fund and raising funds from investors. The accelerator will focus on capacity building, de-risking untested opportunities, investor readiness, organizational structure, etc for first-time fund managers.

Bridge

An innovative capital solution to provide concessional intervention / working capital to SME focused fund managers to expedite track record development and propel them toward a successful first close. By providing concessionary loans, the Bridge Program will enable fund managers to invest in high-potential MSMEs during the critical early stages of their fund development. This approach mitigates the challenges associated with raising initial capital and positions fund managers for long-term success.

Catalyze

 The $100 million WIIF 1 (the first close) will anchor and catalyze over 50 geographically equitable fund managers in Nigeria. The fund will adopt a multi-manager and multi-asset class approach. The majority of the Catalyze capital will be allocated to funds that invest in social enterprises. These funds can be generalist impact funds or those with a specific focus on sectors such as agriculture, healthcare, education, financial inclusion, etc. By investing in these funds, the WIIF can leverage the expertise of experienced managers and diversify its portfolio. 

Impact Target for the WIIF

Train over 25 first-time fund managers.

Invest in over 50 fund managers

Indirectly invest in over 1,000 SMEs

Create over 1,000,000 new jobs

Catalyze over $10 billion into the impact investing space of Nigeria

SDGs target – 1,2,3,4,5,7,8,9, & 10

Strategic partners

Would you like to join our team?
Check out the available openings!

Scroll to Top