The Nigerian impact investing ecosystem is brimming with potential, yet faces a critical challenge: unlocking capital for its vast network of Micro, Small, and Medium Enterprises (MSMEs). A recent High-Level Roundtable convened in Lagos brought together key stakeholders, including policymakers and investors, to address this hurdle. The consensus was clear: targeted government policy support is essential to catalyze the flow of capital to the approximately 40 million MSMEs that form the backbone of the Nigerian economy. This roundtable served as a precursor to the 2025 Africa Impact Summit Study Tour to Nigeria, underscoring the country’s strategic importance in the broader African impact investing landscape. The event, organized by influential players like the Impact Investors Foundation, Impact Investing Ghana, GSG Impact, Alitheia Capital, and Kuramo Capital, focused on the Nigerian government’s pivotal role in bridging the funding gap for MSMEs.
The Nigerian government voiced its commitment to driving economic growth and facilitating a conducive environment for impact investing. Dr. Emeka Obi, Permanent Secretary of the Ministry of Petroleum Resources, emphasized the significance of the study tour, recognizing it as a powerful platform for collaboration and knowledge exchange among global investors, African entrepreneurs, development institutions, and public sector leaders. He stressed the importance of effective policy changes and their consistent implementation to ensure long-term economic prosperity, benefiting not only the present generation but also future generations. Obi’s remarks highlighted the government’s recognition of the need for a stable and transparent policy environment to foster investor confidence and attract much-needed capital.
A central theme of the roundtable was the need for locally-driven solutions tailored to the specific challenges and opportunities within the Nigerian context. A Fireside Chat between Elizabeth Boggs Davidsen, CEO of GSG Impact, and Ibukun Awosika, Chair of GSG Nigeria Partner and Vice Chair of GSG Impact, illuminated this perspective. Davidsen articulated GSG Impact’s commitment to strengthening its global network, particularly in Africa and Asia, emphasizing the development of new policy tools and the mobilization of investment vehicles originating from national chapters. Awosika reinforced the importance of collaboration and the development of homegrown solutions. She cited the successful partnership between Nigeria and Ghana, showcasing initiatives like the West African deal summit and the deal platform, which facilitate connections between businesses and investors. This emphasis on local ownership and collaboration is crucial for ensuring that solutions are sustainable, impactful, and address the unique needs of Nigerian MSMEs.
Discussions further underscored the critical role of Africa in the global pursuit of sustainable development. Davidsen reiterated GSG Impact’s dedication to fostering partnerships across the continent and promoting impact economies that prioritize people and planet alongside profit. A panel discussion featuring leaders from Nigeria’s impact investing ecosystem delved deeper into the challenges and opportunities specific to the Nigerian market. The discussion centered on the need for local private sector investment in MSMEs, coupled with strategies to de-risk impact funds and attract returns-oriented investors. Participants stressed the importance of developing innovative financial instruments and mechanisms that can mitigate the perceived risks associated with investing in MSMEs while offering attractive returns to investors.
The roundtable also acknowledged regulatory progress within Nigeria’s impact investing landscape. The Securities and Exchange Commission’s crowdfunding policy was lauded as a transformative measure for SME financing, fostering private sector participation and inclusive growth. Nigeria’s early adoption of the International Sustainability Standards Board (ISSB) framework for standardized impact measurement was also highlighted, positioning the country as a leader in impact transparency, setting an example for other African markets. These regulatory advancements signify a growing commitment to creating a more robust and transparent ecosystem for impact investing.
The event culminated in a call for deeper collaboration between investors, regulators, and intermediaries. This collaborative approach is essential for building an ecosystem that attracts investment while maximizing positive impact. The study tour, which followed the roundtable, provided participants with firsthand exposure to impactful businesses operating in Nigeria. Visits to AfyA Care, Salpha Energy, and SKLD showcased the diverse range of innovative solutions being implemented across healthcare, renewable energy, and manufacturing. These site visits served as tangible examples of the potential for impact investing to drive positive change in Nigeria and contribute to the country’s sustainable development goals. The convergence of stakeholders, the focus on local solutions, the emphasis on regulatory advancements, and the showcase of impactful businesses highlight the growing momentum of the impact investing movement in Nigeria and its potential to unlock significant capital for MSMEs, fostering inclusive and sustainable economic growth.
