In order to promote economic development, the government has been recommended to invest pension funds in industries that directly affect the residents.
This was said at the Lagos unveiling of the National Advisory Board for Impact Investing’s (NABII) sixth annual report, “Investing for Impact in Nigeria.”
The research offered suggestions on how to unlock pension funds to mobilize capital to stimulate growth in important sectors, as well as how to invest in women-owned and micro, small, and medium-sized firms (MSMEs).
The International Development Research Centre (IDRC) provided funding for the study, which was conducted by the Nigerian Economic Summit Group (NESG) and NABII with support from OTT Impact and the Global Steering Group for Impact Investment (GSG).
“Local investors believe these investments don’t yield financial returns, so these deals are frequently limited in comparison to demand,” it stated.
Together with policy recommendations for maximizing the potential of the agricultural, education, and health sectors, the report offers insightful information on investing for effect.
According to Etemore Glover, Chief Executive Officer of NABII, “This report is an essential step towards understanding the enabling conditions for unlocking investment for impact in key sectors. The Impact Investors Foundation and its partners are committed to improving the awareness, stakeholders’ acceptance, and development of enterprises for impact funds.”
She went on to say that in order to advance the impact investing sector in Nigeria, certain regulations, initiatives, and cooperation amongst important players are outlined in the report.
According to the report, over the past five years, development finance institutions have most consistently directed their impact investments towards the energy ($372.71 million), financial services ($729.69 million), and agriculture ($799.8 million) sectors. Deployment into the education and health sectors has ceased since 2018.
