The Affect Traders Foundation (IIF), has revealed that greater than 65% of personal capital inflows into Nigeria are concentrated in Lagos and the Southwest area, leaving different elements of the nation underfunded.
The Foundation disclosed this in its ‘Nigeria Affect Investing Ecosystem Mapping and Market Sizing Report’ unveiled in the course of the eighth Annual Convening on Affect Investing held in Lagos on Wednesday.
In response to the report, Lagos and the Southwest account for between 65% and 70% of whole capital inflows, largely in fintech and digital providers.
Against this, the North and North-West areas obtain simply 10–12%, primarily in agriculture and microfinance, whereas social sectors resembling well being, schooling, and sanitation proceed to draw minimal funding.
Poverty deepens amid uneven funding flows
The IIF report additionally famous that 56% of Nigerians had been residing under the nationwide poverty line in 2024, up from 49% in 2023.
- It linked this enhance to persistent inflation, forex volatility, and low productiveness in key job-creating sectors.
- The Foundation cautioned that until capital is intentionally directed into enterprises that create jobs and increase entry to primary providers, poverty ranges may proceed to rise.
- The report additionally recognized a “lacking center” financing hole, the place small and rising companies searching for between N10 million and N500 million in funding face obstacles resembling excessive collateral calls for, brief mortgage tenors, and excessive rates of interest.
Pushing capital to the suitable place
Talking on the occasion, CEO of the Affect Traders Foundation, Etemore Glover, stated the report, which builds on the 2019 baseline, gives a complete mapping and market sizing of the influence investing ecosystem.
“The launch of the 2025 Nigeria Affect Investing Ecosystem Mapping and Market Sizing Report is a essential piece of the work that gives evidence-based information and significant market data for policymakers, DFIs, and traders,” she stated.
Glover added that the information would help in guiding capital to the place it’s wanted most, translating availability into impact-aligned development and a extra resilient funding ecosystem.
In response to her, the convening’s goal was to impress a various ecosystem of policymakers, international and native traders, improvement establishments, and entrepreneurs to speed up Nigeria’s impact-ready financial system.
Specialists urge native capital mobilisation
Chairman of the Foundation and Writer of BusinessDay, Frank Aigbogun, known as for stronger mobilisation of home capital sources, together with pension funds, diaspora remittances, and company reserves. He burdened that Nigeria should cut back its dependence on overseas support and concessional finance, that are more and more unreliable.
- Aigbogun famous that international tendencies have proven that companies with social influence can nonetheless ship aggressive returns, urging traders to embrace sustainable and inclusive fashions of development.
- Additionally talking, Nation Director of the UK–Nigeria Tech Hub, Oyinkansola Akintola-Bello, reaffirmed the UK authorities’s dedication to supporting inclusive financing in Nigeria.
- She stated ongoing UK-backed initiatives in gender-responsive investing and enterprise improvement mirror a long-term partnership however added that “Nigeria should prioritise mobilising its personal home capital to make sure resilience.”
Bridging the regional funding divide
The IIF report highlighted progress in local-currency financing from establishments such because the Development Bank of Nigeria (DBN), Bank of Industry (BOI), and InfraCredit, which have prolonged long-term funding to sectors like infrastructure, renewable power, and manufacturing.
It additionally acknowledged assist from worldwide companions together with the IFC, AfDB, Afreximbank, BII, and FMO, which proceed to anchor main improvement investments.
Nonetheless, the Foundation warned that the present regional imbalance in capital flows poses a structural problem to inclusive development.
Be First to Comment