The 2025 Investors Roundtable, hosted by the Impact Investors Foundation (IIF) in Lagos, convened key stakeholders from the financial, investment, and development sectors to address the crucial issue of mobilizing local capital for impact investing in Nigeria. Impact investing, as defined by the Global Impact Investing Network, seeks to generate both financial returns and positive social or environmental impact, addressing critical challenges like poverty, climate change, and access to healthcare and education. The roundtable’s central theme revolved around identifying practical strategies to significantly increase the volume, enhance the composition, and streamline the flow of capital into impact investments within the country. Participants emphasized the urgent need to shift away from dependence on dwindling international capital inflows and instead prioritize leveraging Nigeria’s substantial domestic resources.
A major focus of the discussions was the potential of tapping into various local capital pools, including pension funds, government resources, high-net-worth individuals, and corporate investors. Industry leaders, including fund managers, investors, financial institutions, and regulators, engaged in robust dialogue, highlighting the systemic barriers hindering impact investing in Nigeria. A recurring theme was the cumbersome regulatory environment, particularly the complex fund registration process with the Securities and Exchange Commission (SEC). Streamlining this process and making Nigeria a more attractive jurisdiction for local fund domiciliation emerged as a key priority for encouraging greater domestic participation.
A prominent concern voiced by participants was the lack of a robust framework for attracting local funds to impact investments. Tosin Ojo, Partner at Sahel Capital Agribusiness Managers Limited, stressed the importance of financial sustainability for domestic investors, emphasizing that lasting impact cannot be achieved without a strong financial foundation. The consensus among attendees was that Nigeria must create an enabling environment that incentivizes Nigerians to invest within their own country, thereby reducing reliance on foreign investment. This sentiment underscores a growing recognition that domestic capital is essential for driving sustainable development and economic growth.
Adesuwa Okunbo Rhodes, founder/CEO of Aruwa Capital Management, echoed these sentiments, highlighting the current fund registration process as a significant deterrent to potential investors. She advocated for a more streamlined and efficient system to facilitate local participation in impact investing. This call for regulatory reform reflects a broader need to simplify the investment landscape and reduce bureaucratic hurdles, thereby making it easier for local investors to engage in impact-driven ventures. The roundtable also highlighted the vital role of Micro, Small, and Medium Enterprises (MSMEs) in driving economic growth and the need for innovative alternative investment mechanisms to support these businesses.
Frank Aigbogun, Chair of IIF, emphasized that MSMEs are the backbone of the Nigerian economy and require access to adequate capital to thrive. He stressed the importance of developing innovative financing solutions tailored to the specific needs of MSMEs, recognizing their crucial contribution to job creation and economic development. A new study by the Mastercard Foundation and MEDA, focusing on Africa as a viable jurisdiction for fund domiciliation, further fueled the discussions, providing valuable insights and data to support the arguments for regulatory reform and the development of a more conducive environment for impact investing.
The 2025 Investors Roundtable served as a critical platform for fostering collaboration and generating actionable solutions. Stakeholders committed to translating the insights gleaned from the event into concrete policy recommendations and investment facilitation programs. This commitment underscores the collective recognition of the urgency and importance of mobilizing local capital for impact investing in Nigeria. The roundtable represents a significant step forward in building a more robust and sustainable impact investing ecosystem, one that effectively leverages domestic resources to address pressing social and environmental challenges while generating positive financial returns for investors. The discussions and outcomes of the event lay the groundwork for future initiatives aimed at unlocking the full potential of impact investing in Nigeria and fostering sustainable economic growth.
